2 ms·
Production and logistics capacity. If you run a factory at 100% efficiency, anytime >100% throughput is necessary you get backlogged. If you have ~15% headroom
by dkokelley 5y ago
Production and logistics capacity. If you run a factory at 100% efficiency, anytime >100% throughput is necessary you get backlogged. If you have ~15% headroom as a GOAL, you can weather a shock without any downstream impact.
In the case of the Port of LA shipping containers, optimizing lot storage so that you always have exactly enough space (100% efficiency) breaks down as soon as that space requirement jumps to 110%.
- blitzar 5y ago> breaks down as soon as that space requirement jumps to 110%. It breaks down at 100.0001%. At 110% the butterflys wings are flapping and creating storms on the other side of the planet.