
Manufacturing Operations Management: How Processors can take a New Approach to Raw Material Price Inflation
Manufacturers in process industries are no strangers to raw material price volatility. Historically, price fluctuations of 15 to 20 percent have been common and threatened only the weakest companies. But when prices surge by 100 to 200 percent over the course of 12 to 24 months, the rules of the game change. And when those increases become systemic—not just cyclical—they threaten the viability of all processors– large and small. And that’s exactly where the industry finds itself today.







