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Occam's razor: the simplest explanation is that during global disasters (even slow-moving multi-year disasters) supply chains have trouble coping.
by newsbinator 5y ago
Occam's razor: the simplest explanation is that during global disasters (even slow-moving multi-year disasters) supply chains have trouble coping.
- unixhero 5y agoBecause of just in time fanatisicm.
- yokaze 5y agoI think, there is a possible grain of truth there. >> If there were classified orders taking up fab space, would we ever know? The shortages could have led to larger back-orders, and potential "double booking". Those orders is probably a trade secret, so it probably won't be easy to find out. Just before the pandemic, everyone was optimising for zero inventory, and probably now you have a feedback loop which probably overshoots a bit in the other direction too. You need something in half a year or a year, you likely order it right away instead of doing it just-in-time.
- otherotherchris 5y agoIt's called the bullwhip effect. Everyone at every level in the supply chain is buying six months of buffer stock. Then when normality resumes, everyone will consume their buffer stock while cancelling orders, leading to layoffs, idling, and potentially bankruptcy of component manufacturers and another induced shortage.