On december 26 2004 an earthquake reaching 91 on the


On December 26, 2004, an earthquake reaching 9.1 on the Richter scale triggered a series of devastating tsunamis off the coast of Indonesia. They spread throughout the Indian Ocean, killing large numbers of people and inundating coastal communities across South and Southeast Asia, including parts of Indonesia, Sri Lanka, India, and Thailand. The 2004 Asian tsunami was one of the deadliest catastrophes in modern history, with more than 220,000 lives lost.

Nils Lofgrin, who had managed several construction projects in Australia and New Guinea, was sent by his construction firm to restore a five-star resort along the Andaman coast in southern Thailand that had been ravaged by this tsunami. Casualties at the resort included 12 staff and 37 guests. This was Nils’s first assignment in Thailand. Nils flew down and toured the site. His assessment of the damage was that it was not as severe as feared. The basic infrastructure was intact but debris needed to be cleared and the resort refurbished. He reported back to headquarters that with a bit of luck he should have the resort up and running in a matter of months. Little did he realize how soon he would regret making such a promise.

The problems began immediately when he was unable to recruit workers to help clean up the mess at the resort. The Burmese migrant workers who comprised a significant portion of the workforce in this region had fled into the hills out of growing fears of being arrested and deported. Even when he offered double wages he was not able to recruit many Thais .

Why do you think Nils is unable to recruit Thai workers for his project?

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Operation Management: On december 26 2004 an earthquake reaching 91 on the
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