3 ms·
The problem there is signal lag. When the backlog at the port is cleared and you signal the factory to start production again, it might take 3 months for the pr
by simonh 5y ago
The problem there is signal lag. When the backlog at the port is cleared and you signal the factory to start production again, it might take 3 months for the products to start arriving at the port again. If the port gets congested again and you stop production it might take a month for the goods already made and on their way to stop arriving.
But you can also redirect cargo to different ports, or increase the price you charge for servicing cargo. Even if you dump containers you don’t have to do so randomly. Customers could even mark containers as rejectable, or non critical and therefore first to go to a backlog for a discount.
I found the article really interesting. For most IT use cases jobs are generic but thanks for raising the port example.
- btilly 5y agoThe signal lag is a huge problem. When you go a few stages through a supply chain, a gradual variation in consumer demand turns into huge whiplashes in demand. This is called "the bullwhip effect" and is a huge problem in supply chain management. See https://www.cips.org/knowledge/procurement-topics-and-skills/operations-management/bullwhip-effect-in-supply-chain/ https://www.cips.org/knowledge/procurement-topics-and-skills... for more.