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The main issue is just in time delivery with very low to zero stock levels that has been popular in many industries. Toyota startes just in time delivery everyo
by acd 5y ago
The main issue is just in time delivery with very low to zero stock levels that has been popular in many industries. Toyota startes just in time delivery everyone else copied. Just in time delivery is more vulnerable to supply chain disruptions.
Thus there are some value to having a warehouse. Ie something between just in time delivery and keeping lots of stock.
- dehrmann 5y agoThis is been a relatively cheap way for the world to notice this. It could have been much more severe--people can wait an extra year for a new computer or car. Automakers also get to look at this and decide of the added cost of carrying more inventory is worth it for them. They're right to complain to pressure governments and chipmakers, but that just means they lost this bet on just-in-time delivery and cancelling their chip orders. With all the times things worked out for them, they might still come out ahead.