Effects Of Falling Gas Prices On Operation Management...

The Effects of Falling Gas Prices on Operation Management Decision Making Dylan Knight Robert Morris University Abstract This paper briefly takes a look at how the price of gas has changed over the past ten years and what has caused the drop in fuel prices within the past few years. It then looks at the fuel price’s effect on business operation through the eyes of the Operations Manager and the key aspects in decision making that they have to consider when the gas prices fall, like they have recently. I then give you an idea of how the falling prices effect the Apartment Management industry and the operations involved in renting and renovating apartments. Falling Gas Prices Effect on Operations†¦show more content†¦The one downfall of the increased production here in the United States is the drilling has slowed down drastically leaving many oil workers without a job and forcing some companies out of business. (Krauss) Another cause of the gas prices dropping, according to an article on CNN, is the economic slowdown of the Chinese economy. They also mentioned the increased production in the United States and finally the tentative nuclear deal which would make their oil more readily available to our country. In the article they also predicted that by the time football season came around that tens of thousands of gas stations across the country will be below the $2 a gallon mark. (Isidore) Even though we have seen it come close here in Pennsylvania, it has not gone below $2 here in the greater Pittsburgh area. A few times that I have been home in Ohio I have seen it drop below $2 but it ultimately just depends on which area you are in. With winter quickly approaching gas prices are expected to continue to drop as stations mix a less expensive blend of gas for the winter months. (Isidore) So it is a possibility that we could see prices here in the Pittsburgh area fall to the $2 a gallon area. If I were placed as the Operations Manager in any industry gas prices play a huge factor in business andShow MoreRelatedBusiness Strategy And Managing Changing Environmental Standards, Sustainable Business Initiatives And Global Market Conditions1596 Words   |  7 Pages1980 is to 1990s price reduction and falling profits were the problems faced by paper and pulp industry. Therefore, in order to counter the problems that were being faced; Management of USA and Scandinavia European countries with slightly difference of Methods and Technology and Research and Development, found and implemented various methods in terms of Market trends, Cost-effectiveness, Environment and Sustainability concerns, Supply chain Management and Reorganization/decision making. 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