Hong Kong Rations Japan's Precious Milk Powder. The Japan Earthquake Rattles Supply Chains, Too - Willy C. Shih - HBS Faculty. By Willy C. Shih | 11:35 AM March 23, 2011 Beyond the devastating and saddening human costs, the earthquake in Japan is another reminder of the complexity of the world’s supply chains and the great interdependencies in global production systems.
The world’s supply chains are complex and highly optimized to deliver products efficiently at the lowest cost. They are characterized by a sequential mode of production where goods are produced in a series of stages in different countries by vertical specialists who pass them across borders to the next firm in the value chain. Shocks like this ripple through the chain, and test the robustness of their design. With lean inventories and just in time deliveries, there is not a lot of slack in the system to act as a buffer. Consider, for example, Shin-Etsu Handotai, one of the world’s leading producers of the silicon wafers and ingots that are used in the manufacture of semiconductors. Willy C.
Crisis Coping & Social Order. Humanitarian Relief. News. Tsunami. Hawaii & US territories. US Assistance. Fukushima Nuclear Plants. Tuyet : @JDFielder RT @brianstelte... Tuyet : Americans have a tendency... Tuyet : @brianstelter it's lacking... Tuyet : A 74-person team of #USA M... Videos, Photos.