Supply chain

Since the economic troubles in 2008 car companies saw a major decline in the demand for vehicles.  Now, 3 years later we see the exact opposite happening.  There is a huge demand for cars and the manufactures can’t keep up with the orders, so many customers have cars on backorder.  (Globe and Mail) Honda has seen this and is reacting accordingly by boosting

 production.  Just as it were boosting production, the Tsunami hit Japan; as a result parts and cars were swept away and the entire supply chain was disrupted.  As a wise decision they shifted there manufacturing base and thus changing the supply chain to make it more effective for producing the cars.  This is a very smart decision; instead of trying to salvage the Japanese supply chain it has simply shifted all its resources to Canada, saving them

money and time. Now in an effort to catch up with all the orders and cars lost, the Canadian plants will be producing overtime 6 days a week. Although Honda is paying its employees overtime, a slightly larger cost than usual, the benefits out weigh the costs.

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