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At what point does the risk added by using just-in-time inventory methods override the savings?
by apothegm 2y ago
At what point does the risk added by using just-in-time inventory methods override the savings?
- geodel 2y agoWhen MBA schools revise their curriculum.
- jankyxenon 2y agoJust in time works until it doesn't. For the last decade plus companies made outsized profit by squeezing their supply chains to the bare minimum. Then covid hit and it all fell apart. Companies that had resilient supply chains made outsized profit during this time. Companies are all about making bets on where they make more money. If you were in the hot seat to maximize quarterly profits would you make the first or second bet?
- nine_zeros 2y ago> When MBA schools revise their curriculum. I chuckle because there is some truth to it. A real business survives by understanding the ground reality. MBA/spreadsheet business survives by trying to maximize shareholder value (often by mindlessly cutting costs) until it implodes on itself.
- bee_rider 2y agoThe market optimizes for efficiency, not robustness, right? Every engineer knows redundancy is the easiest way to add robustness (there may be better ways, but redundancy doesn’t require much cleverness). Every economist knows redundancy means you are about to be fired.
- kukkukb 2y agoThere's a very fine line between Just In Time and Just Too Late. We advocate for Just In Case inventory, which is much more resilient.
- apothegm 2y agoCan you please share a little more about what Just In Case inventory looks like?
- TOMDM 2y agoIf they keep it up, the Houthis will discover that the US Navy has a just-in-time delivery all of its own.