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Aren't you assuming that the manufacturer needs to store an inventory of cars somewhere? If the manufacturer sells direct and the lead time is short enough ther
by vajrabum 13y ago
Aren't you assuming that the manufacturer needs to store an inventory of cars somewhere? If the manufacturer sells direct and the lead time is short enough there's little to no risk because there's little to no inventory.
- gamblor956 13y agoYou're thinking of manufacturing inventory risk vs hyper-localized inventory risk. They have to manage inventory both ways, but the hyper-localized inventory incurs significant transportation expenses.