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> The executives would far sooner run out of parts and have very expensive delays in order to hit turnover targets than to have a 2 month buffer to handle deman
by akiselev 6y ago
> The executives would far sooner run out of parts and have very expensive delays in order to hit turnover targets than to have a 2 month buffer to handle demand surges or scheduling variability.
That sounds like a contractor milking a cost-plus contract.
- Guest42 6y agoCan you explain? This was a cost center for a large conglomerate with a number of multi-year contracts but I haven’t heard of cost-plus contracts only cost-plus pricing.
- cptskippy 6y ago> haven’t heard of cost-plus contracts I don't know why someone would agree to them, but they're fairly common. Nasa awarded Boeing a cost-plus contract for the SLS. Basically they're awarded a contract for the cost estimate plus any overruns, it's basically a blank check.