Category: Guest Posts

Guest Post: AI and the Automation of Transportation

 

Prof. Howard Weiss shares his insights with our readers monthly.

Automation is increasingly transforming the transportation industry. As one recent report noted, “Automation is turning transportation networks into continuously optimizing systems that consume less energy per unit moved, operate for longer hours, reduce labor bottlenecks and reshape demand for fuels and electricity.” The importance of this transformation is significant because transportation accounts for approximately 30% of U.S. energy consumption, second only to electric power generation. As discussed in the Chapter 11 of your Heizer/Render/Munson textbook, air, rail, highway, and waterway transportation systems are essential components of an effective supply chain system. Automation and AI are changing how each of these modes operates.

Trucking  accounts for the majority of transportation miles and approximately 60% of transportation fuel consumption. Driverless trucks are already being tested and used in Texas. However, widespread deployment remains challenging because automated systems can have difficulty handling conditions such as curves, hills, and other unpredictable roadway situations.

 While automation could eventually reduce the demand for truck drivers, the industry currently faces a shortage of drivers. So the immediate objective is often to have automation assist drivers rather than replace them. In Ohio, for example, automated trucks operate with a human driver present. These trucks can operate for much longer periods, increasing capacity by avoiding the limitations imposed by driver-hours regulations.

Rail is also becoming increasingly automated. AI and automated systems continuously inspect tracks, evaluate track conditions, and monitor wheel integrity. Rather than relying solely on periodic inspections by employees, railroads can collect information continuously. AI can also analyze train performance at different speeds and use the resulting data to identify more efficient operating practices.

Barges are particularly energy efficient because they can move large quantities of goods using less fuel than either trucks or trains. On the Mississippi River, AI-assisted pilot systems have been tested to help identify changing river conditions. Machine-learning systems are also being developed for navigation, hazard monitoring, vessel tracking, and calculating stopping distances.

Safety is perhaps the most important potential benefit of automation. However, AI can also reduce fuel consumption, minimize delays and bottlenecks, improve asset utilization, and allow transportation systems to operate more efficiently. 

Classroom Discussion Questions:

  1. To what extent should humans remain involved in operating and supervising automated transportation systems?
  2. How might advances in AI influence decisions about which transportation mode companies use to move goods in the future?

 

Guest Post: Enabling the Supply Chain– What Clorox’s ERP Journey Teaches

 

Prof. Misty Blessley

Dr. Misty Blessley frequently cohosts our monthly OM podcasts from her office at West Virginia University, where she is Associate Professor of Supply Chain management.

In Chapter 11 of your Heizer/Render/Munson textbook, students learn about the Supply Chain Operations Reference (SCOR) model. SCOR entails 6 core steps – Plan, Source, Make, Deliver, Return, and Enable. While the first 5 steps focus on the flow of products and information, the Enable step focuses on the technology, data and infrastructure that support all other supply chain activities. In many ways, when firms enable, they lay the foundation that allows the rest of the supply chain to function effectively.

A recent article in Supply Chain Dive provides an excellent example of the enable process in action. Clorox, the consumer products company known for brands such as Clorox bleach, Pine-Sol, Glad trash bags, and Kingsford charcoal, expects to realize significant supply chain improvements as it completes its transition to a new enterprise resource planning (ERP) system. The benefits include better planning, lower inventory levels, greater automation, and a more responsive supply chain that can react more quickly to changes in customer demand. 

But implementing a new ERP system (the topic of Chapter 14) can cause significant disruption before improvements can be realized. The company’s ERP transition began in 2021 as part of a 5-year, $500 million digitization effort designed to replace decades-old technology. During implementation, Clorox experienced fulfillment challenges and incurred additional costs as the rollout progressed more slowly than expected. 

Clorox believes those challenges are largely behind it. the firm has integrated business planning into the new system and moved many activities away from spreadsheet-based manual processes toward automated workflows. The payout is expected to be improved demand fulfillment, streamlined order-to-cash activities, and reduced inventory throughout the supply chain. 

 Enabling capabilities often determine how effectively the entire supply chain performs. Investments in technology, data, and infrastructure may not produce immediate results, but they can create the foundation for long-term operational excellence. ERP systems improve visibility, coordination, and decision-making across organizations. Firms have learned that not implementing ERP can be costly.  But just as The Clorox Company experienced, implementation woes are not unusual.

Classroom Discussion Questions: 

  1. Why do you think so many organizations struggle with ERP implementations?
  2.  What should firms do in advance to ease the implementation process?

Guest Post: Robots as a Service– Is Warehouse Automation Going Subscription?

 Dr. Jon Jackson, Associate Professor of Operations Management at Providence College, raises an interesting issue regarding warehouse robotics. Jon has created AI classroom exercises for each chapter of our text. They are found on-line in the Instructor’s Resource Manual.

Warehouse automation typically requires a significant upfront investment. But what if companies could rent the robots instead?

A recent Wall Street Journal article (August 17, 2026) highlights the growing use of subscription-based robotics in warehouses. Instead of purchasing robots outright, companies can pay a monthly fee to use them, potentially changing the economics of automation.

North American companies ordered nearly 18,000 warehouse robots worth $1.2 billion in the first half of 2026; both figures are up from 2025. Simultaneously, the average U.S. warehouse wage reached $26.85 per hour, up 41% over the past decade. Even with the higher wages, nearly 392,000 jobs remain open in the transportation, warehousing, and utilities industries. Together, these trends create strong incentives for companies to consider greater investment in warehouse automation.

Traditionally, investing in robots means committing substantial capital to equipment that may become obsolete or may not provide enough value to justify the investment. A subscription model changes that calculation by shifting some of the financial risk from a capital investment to an ongoing operating expense. Companies can avoid much of the upfront capital expense, scale automation up or down as demand changes, and potentially gain access to newer technology as it becomes available.

This flexibility could be particularly valuable in warehouses with seasonal or uncertain demand. Rather than purchasing enough robots to handle peak demand (and leaving them underutilized during slower periods), companies could potentially add robotic capacity when they need it.

There are trade-offs, however. Subscription fees may ultimately cost more than purchasing equipment outright, and companies become dependent on the robotics provider for technology, maintenance, and service.

From an operations perspective, “Robots as a Service” raises an interesting question: Should automation be treated as a capital investment or as a variable operating expense? As robotics technology improves, the answer may increasingly depend on how much flexibility a company values.

Classroom Discussion Questions

  1. When might renting robots be preferable to purchasing them?
  2. How does a subscription model change the risk associated with investing in automation?

Guest Post: Artificial Intelligence and Public Transportation

Prof. Howard Weiss shares his insights with opur readers monthly.

AI is becoming an increasingly important tool in public transportation and traffic management. Traffic cameras have been used since 1956, when they were introduced in London. Modern AI-enabled cameras, however, do more than record images. They can interpret what they see and identify traffic violations and other events in real time.

Cities and transportation agencies worldwide are experimenting with this technology. In Greece, AI cameras identify drivers who fail to wear seat belts, who use cell phones, or who exceed speed limits. In Goa, India, 26 locations have installed cameras to identify similar violations. Mississippi uses AI cameras to alert officers to traffic violations. Houston is purchasing AI cameras to improve traffic flow. In the Dallas–Fort Worth area, AI cameras assist criminal investigations

AI cameras are also being used on buses. In Philadelphia, SEPTA uses AI-powered cameras to identify vehicles illegally parked and blocking buses. Broward and Miami-Dade Counties in Florida use cameras mounted on school buses to identify motorists who fail to stop when buses are loading or unloading students.

Benefits and Costs The primary benefit of AI cameras is improved public safety. Several communities have reported reductions in traffic violations after cameras were installed. AI can also reduce the number of police officers required for traffic enforcement and can speed citation processing. 

Citywide systems can require millions of dollars in capital investment, as well as expenses for software development and preventive and breakdown maintenance, as discussed in Chapter 17 of your Heizer/Render/Munson textbook. Fines may offset some costs.

Privacy is another concern. Although systems identify vehicles rather than drivers, they can collect information about where vehicles travel and when. This raises important questions about data retention, access, and appropriate use.

Implementation and Quality Control The experience of several communities demonstrates the importance of quality control. Miami-Dade and Philadelphia both used warning periods before imposing fines. Miami-Dade later suspended its program because of inaccurate citations and subsequently modified the system to improve consistency and transparency. In Greece, reports found significant discrepancies between AI-generated citations and violations ultimately determined to be valid. Some drivers were cited even though they had stopped because of an ambulance or police vehicle.

Classroom Discussion questions:

  1. What rules should governments establish regarding data collection, storage, and access?
  2. What quality-control procedures should be required before a driver is fined based on an AI-generated violation?

 

Guest Post: Ancillary Service as a New Business Strategy–Turning EV Charging Time into Happier Customers and More Profitable Companies

Dr. Misty Blessley is Associate Professor of Supply Chain Management at West Virginia University. She can be reached at misty.blessley@mail.wvu.edu

In Module D of your Heizer/Render/Munson textbook, the psychology of customer wait times is discussed. Most would agree that waiting can be a painful experience. To make waiting less unpleasant, organizations often use distraction as a strategy. Some companies have mastered this approach by leveraging a strategic asset that transforms customer wait time into sales revenue. The rapid expansion of electric vehicle (EV) charging infrastructure provides a compelling example of how firms are creating a competitive advantage built around customer waiting.

According to a recent study, EV charging stations located near grocery stores experience usage rates nearly 5 times higher than stations in many other locations. This finding suggests that EV drivers prefer to combine charging with activities they already need to complete, such as grocery shopping. Rather than viewing charging as wasted time, customers can use that time productively while businesses benefit from additional sales that might otherwise have been lost.

Retailers have been quick to recognize this opportunity. Despite slowing EV sales, Walmart, along with other major retailers, is emerging as a significant player in the EV charging market. Industry experts estimate that charging stations located near retail stores can increase sales by approximately 5%. By 2030, it is projected that 1 in 5 fast-charging stations in the U.S. will be located in the parking lots of big-box retailers.

Restaurants are also capitalizing on this trend. Bojangles, for example, is expanding EV charging capabilities at select locations, recognizing that drivers waiting for their vehicles to charge are potential customers looking for a meal, snack, or comfortable place to relax.

This trend underscores the importance of service operations design. Companies are not simply deciding where to place charging stations, they are strategically integrating an ancillary service into locations where customer dwell time can be leveraged to create additional value. The charging station becomes part of a broader service system that ends with happier customers and more profitable companies.

Classroom Discussion Questions:

  1. Other than the firms mentioned here, what other types of businesses may/may not benefit from installing EV charging stations?
  2. Think of a time when you experienced the pain of waiting in line. What could the business have done to make the experience less unpleasant?

Guest Post: OM and SAP S/4HANA Production Planning and Execution

Dr. Prince Vijai is Assistant Professor of Operations at IBS Hyderabad, India.

In today’s fast‑moving manufacturing environment, production planning is no longer just about scheduling work orders or managing material availability. Modern operations require real‑time visibility, tighter integration across functions, and systems that support rapid decision‑making. SAP S/4HANA’s Production Planning and Execution (PP&E) offers exactly that—an advanced digital backbone for world‑class OM.

At its core, SAP S/4HANA PP&E connects demand, capacity, materials, and shop‑floor activity in one unified environment. This eliminates the traditional disconnect between planning and execution that many firms still struggle with. Instead of relying on batch MRP runs or siloed spreadsheets, planners gain real‑time insights into constraints, bottlenecks, and the ripple effects of schedule changes.

A few capabilities stand out:

  • Real‑time MRP: S/4HANA’s in‑memory engine dramatically accelerates planning cycles, allowing planners to simulate scenarios and adjust instantly.
  • Advanced Scheduling: It provides finite capacity scheduling, enabling more accurate sequencing and resource allocation.
  • Integrated Execution: Shop‑floor data flows directly into the planning system, improving accuracy and reducing reaction time.
  • Exception‑based management: Alerts and analytics help planners focus on issues that matter most—late orders, shortages, or overloaded work centers.

For operations managers, this integration means better alignment between what the system plans and what actually happens on the shop floor. For students, it offers a real-world example of how digital transformation reshapes classical OM concepts like bottleneck analysis, capacity planning, and inventory control.

SAP S/4HANA doesn’t replace foundational OM principles—it amplifies them. The system’s power lies in applying proven concepts with modern speed, accuracy, and connectivity. Whether you’re teaching OM, studying it, or practicing it, understanding tools like S/4HANA is increasingly essential.

As companies continue to adopt advanced planning systems, OM professionals who can bridge theory and technology will be in high demand. SAP’s PP&E environment is a great place to see that bridge in action.

Classroom Discussion Questions:
  1. How does SAP PP transform OM concepts into practical production decisions?
  1. How does cost settlement help operations managers evaluate the financial performance of production?

Guest Post: Facility Repurposing–The Case of Rite Aid

Prof. Howard Weiss looks at how to repurpose a chain of drug store buildings. He is also the developer of our POM and ExcelOM software, provided free to adopters.

In previous blogs, we examined the repurposing of enclosed shopping malls and former Kmart locations. The closure of Rite Aid facilities provides a different set of opportunities because of their size, layout, and location. Unlike the large footprints of department stores or shopping malls, most Rite Aid stores occupy freestanding buildings of moderate size. They are frequently located on prominent street corners, near public transportation, within walkable neighborhoods, or in suburban shopping centers with ample parking. These characteristics make them attractive to a variety of businesses seeking convenient neighborhood locations.

Founded in 1962, Rite Aid grew into one of the nation’s largest pharmacy chains. At its peak in 2008, the company operated 5,059 stores and employed approximately 112,800 people, serving customers in 24 states east of the Mississippi and 7 states west of the Rockies. The company filed for bankruptcy in 2023. By October 2025, Rite Aid announced the closure of its last 56 stores, bringing an end to more than six decades of operations.

Store closures create challenges that extend well beyond the company itself. Vacant commercial buildings often become neighborhood liabilities, attracting vandalism, illegal activity, squatters, and deferred maintenance. Instead of opposing new development through the familiar “Not In My Backyard” (NIMBY) attitude discussed in a previous blog, many communities have embraced the opposite perspective—”Yes In My Backyard” (YIMBY)—recognizing that productive reuse of these highly visible properties is far preferable to allowing them to remain vacant.

More than 1,000 former Rite Aid locations have been acquired by competing pharmacy chains, including CVS and Walgreens. Other buyers have recognized that the buildings are well suited for small-format grocery stores, with companies such as Albertsons, Kroger, Giant Eagle, and Aldi purchasing selected locations. 

Temple University, for example, converted one former Rite Aid into a primary care and neurology clinic located across the street from one of its residence halls. Other former stores have been transformed into dollar stores, medical clinics, childcare centers, seasonal Spirit Halloween stores, and Rally House sports merchandise retailers. The diversity of new occupants also demonstrates the flexibility of these properties.

From an OM perspective, these acquisitions represent an efficient use of existing retail infrastructure while avoiding the cost and time required to construct new facilities.

Classroom Discussion Questions:

  1. Has any store near where you live been repurposed?
  2. Has your city, township, community ever had a YIMBY or NIMBY situation? 

Guest Post: Defense Supply Chains at the Heart of National Security are Under the Microscope 

Prof. Misty Blessley, Associate Professor of Supply Chain Management at West Virginia University, brings up a timely topic.

A major shift is underway in U.S. defense procurement policy, according to Reuters.com (July 20, 2026). President Trump recently signed an executive order making it harder for defense contractors to obtain waivers that allow them to purchase critical minerals and materials from China and other prohibited foreign suppliers. Contractors must now demonstrate that they searched for alternative sources, disclose where materials originate, and provide a plan to reduce dependence on those suppliers.

This policy aligns closely with the goals of the Buy American Act of 1933, which requires federal agencies to give preference to domestically produced goods when purchasing supplies. The law was designed to support American manufacturing, strengthen the nation’s industrial base, and reduce dependence on foreign suppliers. While waivers have long been available when products were unavailable domestically or significantly more expensive, the new executive order signals a tougher approach to those exceptions in defense contracting. 

Why have defense contractors relied on foreign suppliers? In many cases, the answer involves availability. Critical minerals and specialized components are often sourced through global supply chains, with some materials heavily available from prohibited foreign suppliers. Cost can also play a role. Foreign suppliers may offer lower prices, allowing contractors to control expenses. 

At the heart is the urgent need to keep weapons flowing to U.S. forces and allies. According to Peter Navarro, White House senior counselor for trade and manufacturing, “This is not paperwork. It is battlefield preparation.” 

From a supply chain perspective, the most important aspect of the executive order is its focus on visibility and resilience. The Pentagon has been directed to map lower-tier suppliers and identify vulnerabilities hidden deep within defense supply networks, to give a clearer view whether foreign-controlled suppliers could threaten weapons production during a conflict. Contractors must also evaluate suppliers for foreign ownership, financial stability, and manufacturing risks. 

The U.S. government is not leaving contractors high and dry. Recent investments in companies such as MP Materials, a domestic producer of rare earth materials, demonstrate efforts to make buying American easier. 

Classroom Discussion Questions:

  1. What opportunities do you see resulting from this executive order?
  2. Do the benefits of increased supply chain security outweigh the likely increase in costs? Why or why not?

 

 

Guest Post: Packaging Food– Production, Inventory, Training

Prof. Howard Weiss raises an interesting issue that can save consumers and companies money.

Most discussions of OM focus on creating products and services. However, Chapter 5 of your Heizer/Render/Munson textbook reminds us that product design also includes developing packaging to prevent damage and ensure safety.  One packaging issue that is important is the date labels found on food products. 

A report on food waste found that more than 50 different date labels are used on packaged foods sold in the U.S. The types of labels can be classified as

Label Type Example
Quality Best By
Safety-Oriented Discard After
Production and Packaging Pack Date
Storage and Handling Freeze By
Freshness-Focused Fresh Until
Retail and Inventory Last Date of Sale
Specialty Product Harvest Date

 

The use of these labels is largely unregulated. With the exception of infant formula, federal law does not require manufacturers to place date labels on food products. Further, manufacturers are generally free to choose whichever terminology they prefer. This lack of consistency often leads consumers to discard perfectly safe food, increasing household costs and contributing to unnecessary food waste.

Recognizing this problem, California became the first state to standardize food date labeling with a law that just went into effect and applies to all food products sold within the state. Products sold outside the state are exempt. The law is aimed at reducing food waste and lowering greenhouse gas emissions.

The expected benefits are substantial. Standardized labels should reduce consumer confusion, preventing the premature disposal of safe food and eliminating an estimated 70,000 tons of food waste annually in California. Consumers and retailers should also realize significant economic savings through reduced waste, while fewer discarded food products will lower methane emissions from landfills and benefit the environment.

These regulations have important implications for manufacturers, processors, and retailers. Companies selling products in California must comply with the new requirements by requiring packaging redesigns that use only the standardized “Best If Used By” and “Use By” labels and prohibiting “sell by” dates. Employees will require training and must also be able to explain the new system accurately to customers. Finally, inventory management systems and stock rotation procedures must be updated to ensure products are handled according to the new labeling standards. 

Classroom Discussion Questions

  1. How can you tell if food is safe after its “Use or freeze by” date? 
  2. Does your state have laws regarding packaging labels?

Guest Post: The Gas Station Life Cycle

Prof. Howard Weiss, retired from Temple U.,  shares his thoughts with our readers monthly.

The history of gasoline service stations provides an excellent illustration of life cycles as discussed in Chapter 5 of your Heizer/Render/Munson textbook

Before There Were Gas Stations The first practical gasoline-powered auto was developed in 1886 by Carl Benz. Prior to that, some inventors experimented with steam-powered vehicles, while others relied on kerosene because it was inexpensive, widely available, and burned efficiently. Early motorists purchased gasoline in bulk containers from pharmacies, blacksmith shops, or general stores and then poured the fuel into their vehicles using a funnel. Although this process seems inconvenient today, it was sufficient when automobiles were still a novelty.

Life Cycle Stage 1: Introduction

In 1905 the Automobile Gasoline Company opened the first gas station, in St. Louis. The station consisted of little more than a curbside pump with a hose, allowing motorists to fuel their vehicles directly instead of using portable containers. Gasoline sold for 25 cents a gallon. In 1913, the first drive-in service station opened in Pittsburgh, and also expanded the customer experience by offering free air, water, crankcase service, tire installation, and road maps.

Life Cycle Stage 2: Growth

During the growth stage, automobile ownership expanded rapidly, and so did the number of gasoline outlets. By the 1920s, major oil companies had standardized station designs and logos, creating recognizable national brands. Self-service fueling was introduced in the 1940s and became commonplace during the 1970s, reducing labor costs while increasing customer convenience. Today, many filling stations are combined with convenience stores such as Wawa, where merchandise sales often generate higher profits than gasoline itself.

Life Cycle Stages 3 & 4: Maturity and Decline

The number of gasoline outlets peaked at around 285,000 in 1975 and then entered a steady decline. Small independent stations found it increasingly difficult to compete with larger, multi-pump convenience stores that benefited from economies of scale and higher-margin retail sales. The number has been fairly constant at about 145,000 since 2000.

The growth of EV charging stations, beginning around 2007, interestingly, has not yet produced a corresponding decline in the number of gas stations. The future of gas stations will partially depend on the pace of EV adoption, but its history remains an excellent example that not all life cycles have the same shape.

Classroom Discussion Questions;

  1. What information would you want in order to forecast the number of gasoline outlets that will exist in 2040. 
  2. Could linear regression be used to forecast the number of electric charging stations in 2040? 

Guest Post: How AI Has Transformed Semiconductor Scheduling at NVIDIA and TSMC

Professor Misty Blessley raises an interesting AI issue-chip plant scheduling.

Semiconductors have been called the brains of the modern world. Switching between conducting and blocking electricity, they are essentially “on/off” switches that control the flow of power, and this unique characteristic makes them the building blocks of modern technology. They are behind computing, communications, and energy innovation, and our information dependent society is always hungry for more. Leading chip makers, NVIDIA and TSMC, both use an AI to advance semiconductor design, scheduling, and manufacturing, report ElectronicsUSA (June 4, 2026) and NVIDIA News (May 31, 2026).

TSMC ( Taiwan Semiconductor Manufacturing Company), the world’s largest semiconductor foundry, makes the most advanced chips on the planet. NVIDIA is a global leader in accelerated computing and AI. For decades, TSMC has manufactured NVIDIA’s chips, and this partnership has come full circle. TSMC uses NVIDIA’s AI technologies inside its fabrication plants (“fabs”), which in the semiconductor industry refers to highly specialized facilities where silicon wafers are processed into microchips.

NVIDIA’s AI models are now embedded directly into TSMC’s manufacturing workflow, transforming production scheduling. A single wafer, a subcomponent of a semiconductor, may require hundreds of tools and thousands of tightly sequenced steps. TSMC can now evaluate millions of scheduling combinations in seconds. This optimizes job sequencing, and instantly rebalancing schedules when tools go down or urgent orders arrive. The result is smoother production flows, less idle time, and higher overall fab productivity. AI comes as close as ever to “running the plant.”

AI driven scheduling is also advancing through emerging capabilities such as predictive dispatching, where models forecast bottlenecks hours ahead and reroute wafers to prevent delays. Another is crossfab load balancing, which evaluates capacity across multiple TSMC sites and shifts work to maximize throughput. Both approaches are expected to reduce fab cycle time 5–10%.

NVIDIA’s AI scheduling helped TSMC cut critical chip production workloads 20-50%. This addresses society’s insatiable demand for semiconductors. It also fuels the next wave of breakthroughs in computing, communications, and energy innovation, the domains powered by these tiny on/off switches.

Classroom discussion questions:

  1. What are the strategic and operational risks if a company relies too heavily on AI to automatically reroute work without human oversight?
  2. Discuss how AI’s ability to evaluate millions of combinations in seconds changes a manager’s approach to bottleneck scheduling compared to manual or sequential sequencing rules (like SPT or FCFS).

Guest Post: Looking Beyond Fuel–The Strait of Hormuz’s Connection to the Food Supply Chain

Temple U. Professor Misty Blessley raises a timely issue with her monthly Guest Post.

The Strait of Hormuz closure highlights a risk far greater than rising gasoline prices. The world is facing a potential fertilizer shock that could ripple through the global food supply chain. While headlines often focus on oil, the Strait is also a critical corridor for nitrogen-based fertilizers, especially urea, which depends heavily on natural gas as a feedstock.

Roughly 1/3 of global seaborne fertilizer normally moves through this chokepoint. With passage through the Strait at a standstill, the concern is whether farmers will have access to adequate and affordable fertilizer during this planting season.

Fertilizer and fuel are deeply intertwined. Nitrogen fertilizer is produced by converting natural gas into ammonia. Any disruption in gas supply immediately constrains fertilizer production. Thus, when the Strait is shut down, fertilizer producers will follow in turn. It is reported that nitrogen fertilizer supports approximately half of the global population.

Scotts MiracleGro struggled to keep store shelves stocked during the COVID era demand surge, underscoring how long it can take for a disrupted supply chain to regain equilibrium. This is where the risk becomes acute. Corn, wheat, and rice, major food sources the world over, are among the most nitrogen-hungry crops. Countries that rely heavily on imported fertilizer,
such as India, Brazil, China and the U.S., are especially vulnerable with vast amounts of fertilizer originating in the Middle East. A prolonged disruption could mean lower crop yields, eventually leaving empty space on grocery shelves.

The Strait’s closure is rippling into a food security crisis in slow motion.

Classroom Discussion Questions:
1. Effective risk management requires visibility into every material, its origin, and each step of the production process along the supply chain. How can AI be leveraged to help map these dependencies, identify vulnerabilities, and strengthen risk mitigation strategies? (Refer to Chapter 11 of the Heizer/Render/Munson textbook Figure 11.1 as a multi-tier supply chain example).
2. It is widely estimated that as much as 40% of all food produced is lost or wasted somewhere along the supply chain. Identify organizations working to reduce food waste and discuss what would be required to scale their solutions effectively.
3. In your opinion, is reducing food waste a viable mitigation strategy?

 

Guest Post: Amazon’s Next Act–Supply Chain as a Service

Dr. Jon Jackson is Associate Professor of Operations Management at the Providence College School of Business. He has created a series of AI exercises for each chapter in our text.

The term “software as a service” (SaaS) has become ubiquitous over the last few decades, covering everything from CRM systems (e.g., Salesforce) to file storage (e.g., Dropbox) and e-commerce platforms (e.g., Shopify). Amazon entered this arena in 2006 with Amazon Web Services (AWS), offering “infrastructure as a service.”

Fast forward to 2026, and Amazon is applying a similar playbook to logistics with its new “supply chain as a service” platform, Amazon Supply Chain Services (ASCS), according to an Amazon press release (May 4, 2026).

ASCS opens Amazon’s vast global logistics network not just to its own marketplace sellers, but to businesses operating across competing marketplaces and in B2B channels. As Peter Larsen, vice president of Amazon Supply Chain Services, puts it, the platform is “available to any business of any shape or size.”

This marks a significant shift. For years, companies have relied on third-party logistics providers (3PLs), with an estimated 94% of Fortune 500 companies using at least one. Now, Amazon is positioning itself as a full-stack alternative, offering freight, warehousing, fulfillment, and last-mile delivery in a single integrated system. In 2025, Amazon’s logistics revenue was estimated at $172 billion, far surpassing competitors like DSV ($37 billion) and DHL Supply Chain ($35 billion), reported by The Wall Street Journal (May 4, 2026).

Early adopters of ASCS include major brands such as Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters.

If AWS transformed how companies build and scale software, ASCS could do the same for physical commerce by reshaping supply chains and the competitive dynamics of global logistics.

Classroom Discussion Questions

1.How does ASCS impact traditional 3PLs (e.g., FedEx, UPS, DHL)? What can they do to differentiate and defend their market share?

2. As a business owner, what concerns would you have about outsourcing your entire logistics operation to Amazon?

3. Could Amazon’s “supply chain as a service” model become as dominant as AWS? What would that mean for competition in retail and logistics?

 

Guest Post: Why the Union Pacific – Norfolk Southern Merger Could Reshape U.S. Rail

Temple U. Professor Misty Blessley looks at an important logistics issue.

Union Pacific (UP) and Norfolk Southern (NS) are seeking Surface Transportation Board (STB) approval to merge into what would become the first true coast- to-coast Class I railroad in the United States. A Class I railroad is a freight carrier generating more than $1 billion in annual revenue.

A unified UP–NS network could eliminate thousands of daily railcar and container handlings, reduce chokepoints, and create a more fluid national network. For shippers, that means fewer delays, lower inventory carrying costs, and more predictable inland flows from ports.

The UP–NS merger would follow the 2025 Canadian Pacific–Kansas City Southern (CPKC) merger, which created the first single-line railroad connecting Canada, the U.S., and Mexico. But CPKC is significantly smaller than either UP or NS.  CPKC has 51,065 cars online, compared to 304,481 for Union Pacific and 162,339 for Norfolk Southern.

The combined railroad would reshape east–west freight flows. However, the massive scale underscores why the UP–NS proposal is drawing scrutiny.
A major part of the railroads’ argument is competitive pressure from long haul trucking. Motor carriers win when shippers need speed, flexibility, and door-to-door simplicity. If the merged railroad can reliably cut one to two days from cross country moves, rail becomes a more credible alternative to truckload.

The STB has ordered Union Pacific and Norfolk Southern to submit full internal documents so regulators can verify the merger’s promised benefits. While the Board is not an antitrust agency in the traditional Department of Justice sense, it is responsible for evaluating whether a merger would reduce competition, create market dominance, or harm shippers. The STB is “getting all the facts and elevating transparency in agency decision making.” For now, only time will tell.

Classroom Discussion Questions:
1. Would you allow the merger given its potential benefits and its potential risks to competition? Why?

2. In Example S4 of Chapter 11 in your Heizer/Render/Munson textbook, Transportation Mode Analysis, Daily Cost of Holding shows how time is money. How does a shipper benefit financially when transit times improve?

Guest Post: The Two Stories of Tesla’s Solar Panels

Temple U. Professor Misty Blessley provides interesting blog topics monthly.

In our 2023 OM blog, New York State Built Elon Musk a $1 Billion Factory, we learned that building a solar panel facility was “a bad deal” for NY. The state built a massive plant and provided solar-panel manufacturing equipment. Tesla’s end of the deal was to churn out enough solar-panel shingles by 2020 to cover 1,000 roofs on a weekly basis.

These solar panels are finally on the verge of materializing, and with this are two stories. One connects Tesla’s long game in vertical integration and the other is New York’s long-delayed economic vision.

Tesla’s Long Game in Vertical Integration
Tesla’s new residential solar panels fill the company’s missing piece. The firm was missing the energy generator (aka solar panel). Despite the solar factory in New York, Tesla spent years relying on third-party suppliers for its solar panels. Now, it can fully optimize performance across the entire home energy stack. Tesla can vertically integrate the full chain from generation (solar panels), to conversion (inverter), to storage (Powerwall), and to consumption (EV charging).

New York’s Long-Delayed Economic Vision
This pivot finally gives New York its payout. By bringing solar panel manufacturing in-house, Tesla is delivering the kind of industry and employment the state originally hoped for. The region, once defined by its industrial decline, gains a foothold in the clean energy manufacturing economy. The move aligns with federal and state incentives that reward U.S.-made components, strengthening the economic logic behind NY’s investment. Tesla’s shift toward a unified home energy ecosystem mirrors the vision that justified the state’s $1 billion bet. The factory, once criticized as a stranded asset, now becomes the manufacturing backbone of Tesla’s residential energy strategy.

Tesla didn’t just release new solar panels. It connected the car in the driveway to the sun, and in doing so may have finally delivered the manufacturing story NY was waiting for.

Classroom Discussion Questions:
1. How is vertical integration good for Tesla? For Tesla owners? To compare this to an internal combustion engine, it is somewhat like having petroleum, a refinery and a gas pump in the garage or driveway.

2.  Knowing that Tesla’s occupation of the Buffalo facility is long overdue, what stipulations should a city or state impose on a firm when incentivizing a location decision to the tune of $1 billion?