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>How can there be a supply chain crisis and a inventory surplus? These are the same problem. Matching allocation to demand is a hard problem and the wild swin
by colechristensen 4y ago
>How can there be a supply chain crisis and a inventory surplus?
These are the same problem. Matching allocation to demand is a hard problem and the wild swings in demand caused by COVID and inflation responses means that you have both supply chain problems and surplus problems.
Things aren't very elastic and money-saving just-in-time practices of eliminating buffers mean that it is harder to respond to the various shocks.
You're essentially upset that the future wasn't predicted correctly when there has been a lot of uncertainty going around for years now.
- fdupress 4y agoIt seems to me that "a lot of uncertainty going around for years" would make some attempt to actually set up a buffer to better absorb shocks and adapt. This is not about predicting the future, it is about failing to manage a clearly increased risk of failing to predict the future.
- colechristensen 4y ago“Inventory surplus” is the buffer and a failed overestimation. Because of the uncertainty you have both large overestimations and underestimations.
- kzrdude 4y agoRight now it seems like airlines in Europe are selling enough tickets so that the airlines are at or over their capacity of handling passengers. Lots of lines and delays everywhere. Maybe the airlines just don't have the incentive to slow down their sales, etc, even if the airports are not ready with enough staff.