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The government does have stockpiles for emergencies, mandated buffers will guarantee overproduction and affect market equilibrium
by kirykl 7y ago
The government does have stockpiles for emergencies, mandated buffers will guarantee overproduction and affect market equilibrium
- TeMPOraL 7y ago> The government does have stockpiles for emergencies As you can see now, it doesn't. Neither does any other government.
- ImaCake 7y agoWell, they do. But they were just way to small.
- kirykl 7y agoYour hatred of lean is confusing, Companies exist to make money why would they hold extra inventory ?
- minikites 7y agoCompanies are merely one part of society. Why does society exist?
- kirykl 7y agoHuh? What does that even mean? I'm replying specifically to the notion that lean manufacturing is a bad thing
- minikites 7y agoYou're saying companies exist to make money but an isolated factoid like that doesn't make for a productive discussion. Lean manufacturing may be good for individual corporations but it's clearly bad for society and society needs to continue existing for corporations to exist.
- kirykl 7y agoTying up $ in assets that are sitting in warehouses instead of using that $ elsewhere is a not benefit to society. One premise of lean is to match variation in demand to supply as quickly as possible, you should be calling for capacity to scale production and lower lead time, not hold inventory. You might not even hold the right inventory.
- minikites 7y ago>capacity to scale production and lower lead time How has that been working out? What happens when factory employees fall ill?
- kirykl 7y agoWhat happens when your inventory runs out ?
- TeMPOraL 7y agoPotentially the same problem, except you shift it forward in time. So perhaps the factory staff can recover and get back to work before the buffer runs out. Or competitors can ramp up production in time to compensate. Point is, a buffer is adding inertia into the system, an integrating block, which is often a good thing, as it eats oscillations. It's essentially the same reason you put capacitors next to the power supply in electronics - they eat voltage spikes, preventing your device from shutting off just because it briefly drew more power.