4 ms·

We've seen this during the COVID pandemic supply chain disruptions as well, where just in time supply chain management doesn't work as expected when operating i

by jfim 2y ago

We've seen this during the COVID pandemic supply chain disruptions as well, where just in time supply chain management doesn't work as expected when operating in an abnormal environment.

soulofmischief 2y ago
I'd always thought this conclusion was just a given. Highly optimized systems take full advantage of their environment and rely on a high degree of predictability in order to avoid redundant operations. These systems minimize the free energy in the system, and so very little free energy is available to counteract new forces introduced to the environment which act on the system. You'll find parallels in countless domains, since the very basis for learning and stabilization of a system revolves around becoming more or less sensitive to a given stimulus. Examples could be attention, supply chain economics, institutions, etc.
jimkleiber 2y ago
I was gonna come here to say that, especially how there was a shortage on toilet paper. I remember reading it was becuase factories were so efficient that when people started using the toilet at home instead of the office, it was hard to switch the factories from making commercial to residential toilet paper. I think someone even made the pun of paper-thin margins.
LorenPechtel 2y ago
It's not just Covid. Look at the medical world. Generic products compete on price and there is little profit margin--not enough to warrant overprovisioning against problems. And meeting FDA requirements for new activities means new players can't just jump in the game. (And we sometimes see this done maliciously--control all active production of something and shove the price through the roof.) One factory has a problem and there can be huge problems downstream as a result. The only solution I see is for the FDA to include supply reliability in it's determination of whether a system is acceptable.

by jfim 2y ago

We've seen this during the COVID pandemic supply chain disruptions as well, where just in time supply chain management doesn't work as expected when operating in an abnormal environment.

soulofmischief 2y ago

I'd always thought this conclusion was just a given. Highly optimized systems take full advantage of their environment and rely on a high degree of predictability in order to avoid redundant operations. These systems minimize the free energy in the system, and so very little free energy is available to counteract new forces introduced to the environment which act on the system. You'll find parallels in countless domains, since the very basis for learning and stabilization of a system revolves around becoming more or less sensitive to a given stimulus. Examples could be attention, supply chain economics, institutions, etc.

jimkleiber 2y ago

I was gonna come here to say that, especially how there was a shortage on toilet paper. I remember reading it was becuase factories were so efficient that when people started using the toilet at home instead of the office, it was hard to switch the factories from making commercial to residential toilet paper. I think someone even made the pun of paper-thin margins.

LorenPechtel 2y ago

It's not just Covid. Look at the medical world. Generic products compete on price and there is little profit margin--not enough to warrant overprovisioning against problems. And meeting FDA requirements for new activities means new players can't just jump in the game. (And we sometimes see this done maliciously--control all active production of something and shove the price through the roof.) One factory has a problem and there can be huge problems downstream as a result. The only solution I see is for the FDA to include supply reliability in it's determination of whether a system is acceptable.