How do you cut production? To build electronics today you have to buy all the parts up front for fear they will disappear or be replaced with new versions if y

How do you cut production? To build electronics today you have to buy all the parts up front for fear they will disappear or be replaced with new versions if you try to buy more later. Does this just mean they won't assemble half the planned production and try to sell the rest of the parts? Won't this mean the assembler makes no profit and loses money since they assumed they were going to do a full production run? Who would sign a contract that lets that happen? Are they going to actually build them and just warehouse them instead of shipping them to distributors?