Article 1: OM in the News: America Is Back in the Factory Business

Question 1: One factor that is driving an increase in U.S manufacturing is production in

high-tech fields, and a lot of this production is being backed by government incentives. Having
factories that are located in the United States allows for retailers to hold less inventory at a
given time. This allows for stores to save money since holding large amounts of inventory can
be costly. Products that are made in the United States are generally more positively viewed by
the consumer, this gives an incentive for a company to make their products in the United States.

Question 2: This boom in the manufacturing sector has led to a labor shortage. Around
800,000 jobs were added over the past 2 years to the manufacturing sector in the United States
but there is still a demand for 800,000 more jobs. There is a concern that this labor shortage
along with other problems in the manufacturing sector will lead to a collapse of the boom that
has been seen in U.S manufacturing. There is also concern that companies that have recently
opened factories in the United States will go back to countries like Vietnam and China which
may have better means of production.

Article 2: OM in the News: European Manufacturers Shift to the U.S.

Question 1: If I was an operations manager at a European manufacturer I would probably stay

in Europe. I would do this because energy prices can change in both Europe and the United
States for better or for worse. In the article it says that Europe could face high prices well into
2024 and if this were to be true then I don't think that it is worth it to move production to the
United States.

Question 2: I think that the U.S advantage is temporary because economies fluctuate quite
often. Although I do think that business sectors like infrastructure, microchips and green-energy
projects that are increasing in the United States are going to continue to increase and draw
foreign investment. Even though war and inflation are occuring in Europe this will likely change
within the upcoming years.

Article 3: Guest Post: Production of TABASCO® Sauce

Question 1: Wine is an example of a product that has climate as a main factor in facility
location. Around 84% of wine that is produced in the United States is made in California. This is
because much of California has a mediterranean climate which is best for producing grapes.
This is why most wineries are located in California since it is convenient to have the winery near
to where the grapes are being produced.

Question 2: Newspapers are an example of a product that gets reused and repurposed. Even
though they are first meant to be read they are then recycled to be used in various items such
as kitty litter, egg cartons, paper plates, etc. Plastic milk jugs are also repurposed in a similar
way, into things like buckets, play sets, and plastic lumber.
Article 4: OM in the News: Improving Productivity at Starbucks

Question 1: One thing that Starbucks can do to improve productivity would be to reduce
employee turnover. Improving employee satisfaction would reduce employee turnover which in
turn would lead to a more experienced staff that would be able to be more productive. Starbucks
could also create a new more efficient system for making drinks, especially more time
consuming drinks like the frappuccino. This along with more employee training on how to make
drinks faster could improve productivity.

Question 2: One way that Starbucks can reduce employee turnover would be to increase the
amount of employees that are at a given location. This would ensure that employees wouldnt
get burnt out which is a major reason as to why Starbucks has such a high employee turnover.
Starnbucks could also give periodic raises, this would increase the likelihood of an employee
staying with the company.