Honda has definitely had its fair share of financial hardships this year due to catastrophic natural disasters that have occurred overseas in Japan and Thailand. To name a few: the earthquake and tsunami which struck Japan in March, and the floods that occurred in Thailand this past October. Honda’s company manufacturing lines, production operations, and warehouses have all been damaged impacting the companies supply chain. “A number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to [the] production operations in North America.” What is the optimal solution for Honda to prepare from future collisions? It needs to be a flexible and ready for change if they are producing overseas. Improvements in their supply chain management keeping “tighter control of internal inventories, internal production, distribution, sales and the inventories of the company’s product purchasers”. The company needs to maximize operational efficiency and reduce overall supply chain costs. Should Honda start to reduce automobile production to reduce having excess and only focus on the North American plants? Honda must keep strong relations with their suppliers in Japan and be able to adapt to changes.
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