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What it is the alternative to the current just-in-time regime? Warehouses filled with stuff to be sold. Overproduction. Stuff getting destroyed because it expi

What it is the alternative to the current just-in-time regime? Warehouses filled with stuff to be sold. Overproduction. Stuff getting destroyed because it expires or cannot be sold for whatever reason. We may get there, hopefully only temporary, as a reaction to the current situation. For most companies, the amount paid to the factory in China or elsewhere, is only tiny fraction of the price the product is sold for. That is why companies now are double or even triple ordering. Most of that stuff will just ending up getting destroyed.

Clubber 5y ago
Companies should stockpile where they are most vulnerable. I'll give an example. I make (assemble) my own bullets (cartridges) for target shooting. There are 4 parts: primer, powder, bullet and casing. The casing is the most resilient because I can pick them up and reuse them. The bullet is probably the second most resilient, because in a pinch, I can get molds and pick up and melt down lead and make them. The powder is also pretty resilient because there are multiple manufacturers and all kinds of powder per manufacturer that would work, I would just have to adjust the drop (amount) for the new powder. Primers are the least resilient, because it's hard to replace and also competing manufacturers who make pre-assembled cartridges also need them, so I would certainly make sure I had plenty of those. Of course, even with all that, there's no way of knowing how long the shortage will last. We're going on a year plus now, and who would have anticipated that?
p_l 5y ago
Well, Overproduction is a problem when you make big batches and then need to store them. A lot of "inputs" outside of food production can be stockpiled reasonably longer, so without breaking with JIT/Lean philosophy all you need to do is to create a bigger buffer at the start of the value chain, which might mean that missing X deliveries won't stop your production rate instead of 1 missing delivery stopping the whole factory.

Clubber 5y ago

Companies should stockpile where they are most vulnerable. I'll give an example. I make (assemble) my own bullets (cartridges) for target shooting. There are 4 parts: primer, powder, bullet and casing. The casing is the most resilient because I can pick them up and reuse them. The bullet is probably the second most resilient, because in a pinch, I can get molds and pick up and melt down lead and make them. The powder is also pretty resilient because there are multiple manufacturers and all kinds of powder per manufacturer that would work, I would just have to adjust the drop (amount) for the new powder. Primers are the least resilient, because it's hard to replace and also competing manufacturers who make pre-assembled cartridges also need them, so I would certainly make sure I had plenty of those. Of course, even with all that, there's no way of knowing how long the shortage will last. We're going on a year plus now, and who would have anticipated that?

p_l 5y ago

Well, Overproduction is a problem when you make big batches and then need to store them. A lot of "inputs" outside of food production can be stockpiled reasonably longer, so without breaking with JIT/Lean philosophy all you need to do is to create a bigger buffer at the start of the value chain, which might mean that missing X deliveries won't stop your production rate instead of 1 missing delivery stopping the whole factory.