4 ms·

You also have to add the inherent instability and fragility of the JIT supply chain system. Most JIT supply chains can't be deviated more than about 5%-10% var

You also have to add the inherent instability and fragility of the JIT supply chain system. Most JIT supply chains can't be deviated more than about 5%-10% variance of volume without becoming abruptly nonlinear. Normal JIT is dependent on being within a narrow range of linear operation. Add positive and negative feedback loops and you have a super fragile system that can be easily disrupted.

IG_Semmelweiss 6y ago
Certainly. I dont think any government has been forward thinking enough to build some slack resiliency into the supply chain. You see some of this at the federal level with food (US) or temporary safeguards by states , to make healthcare delivery during covid simpler (several states abolishing certain licensing rules etc) but I'm not aware of anything meaningfully impacting resilience of supply chain by any actor. You could argue that spot and forward pricea help, but when you pay x and your stuff ia sitting at port idle with no prospect of moving, then you wonder whats the point of prices anyway. When i pay for an uber, i know im being picked up when the time estimate tells me, especially if im paying surge pricing. That relationship was broken for shipping, for a big part of 2020 ,well into golden week