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All of the car companies, dialed down orders at the start of the pandemic. Now they are all trying to stockpile chips, due to not enough supply. I imagine (no d
by xxgreg 5y ago
All of the car companies, dialed down orders at the start of the pandemic. Now they are all trying to stockpile chips, due to not enough supply. I imagine (no data to support) the increased size stockpiles are a large part of what makes the problem worse. Kinda like TP really.
Also, Toyota is now cutting 40 percent of global production due to chip shortage.
https://www.bbc.com/news/business-58266794 https://www.bbc.com/news/business-58266794
- deleted 5y ago[deleted]
- lobocinza 5y agoTail whip effect
- xxgreg 5y agohmmm interesting - here's an article. https://qz.com/2004569/the-global-chip-shortage-can-be-explained-by-the-bullwhip-effect/ https://qz.com/2004569/the-global-chip-shortage-can-be-expla...
- lobocinza 5y agoOh, true! English is not my main language. I meant bullwhip effect, not tail whip (pokémon move). ;)
- visarga 5y agoAn interesting failure mode of free markets. Inherent instability.
- namaria 5y agoAny system with signalling delay will experience this effect. Changes will get amplified across layers. That's also a common way to die from a viral infection: your immune system goes into overdrive from too many signals of infection from different tissue cells. A common treatment is steroids, which dampen immune response.
- lobocinza 5y agoIs an inherent instability in any system with long/slow information chains. It's more a failure mode of central planning than of free markets. We had a few companies making bad decisions based on bad demand forecasting. This is a problem mitigated by stock exchanges (commodities).
- fomine3 5y agoIt's not mainly due to chip shortage, but other parts made in ASEAN. https://asia.nikkei.com/Business/Automobiles/Toyota-to-cut-global-output-40-in-September-on-ASEAN-outbreaks https://asia.nikkei.com/Business/Automobiles/Toyota-to-cut-g...