2 ms·
The majority of the buildup is because 99% of the parts are in, but production cannot start until the missing few parts appear. That's the genius of the bottle
by swamp40 4y ago
The majority of the buildup is because 99% of the parts are in, but production cannot start until the missing few parts appear.
That's the genius of the bottleneck hording approach. But you still need ~$100 Billion dollars to pull it off, which mean only a few players in the world could do it.
The problem comes from sitting on that 99% inventory for so long that the bills come due. Normally you get 45-60 days to pay and you sell your product by then so your cashflow is fine. But now, you need to get loans, interest rates are rising, etc. There is a finite time that companies can hold on before it all comes crashing down.