It seems you are talking about financial business management who focus on near term gains; inventory is "waste" in a lean six sigma environment which is the kool-aid the corporate culture has been drinking over the last ten years.
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That's what the profession in my MS operations management class has been talking about. Reducing inventory so it's not a cost that has to be carried. But he does stress that the balance between inventory and cost of stockouts has to be evaluated for every business. I tend to think that with a number of the supply disruptions we've seen (Fukashima tsunami, COVID, Suez Canal), it makes sense to carry more than JIT inventory levels as a buffer. In a systems perspective, you need to stock to buffer the variability in flows.
I've been in business 20 years, but on the marketing side vs. production. I'm getting my MS in technology systems management so am learning various methods of production management. I get the drive to efficiency, but too much of it seems like a risk to the business. Technology can help you manage the inventory for optimal reorder points, but if you can't get the order in you're screwed.
JimG
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Anyone have any idea when the Ford and Chevy trucks will get their microchips? I was going to buy a new GMC pickup, but you can't find them on the lots anywhere!
As you know then inventory is risk. However, JIT isn't global for all things being manufactured there are many colors on the supply side. The semiconductor arena, especially for transportation is revised every two years consequently, the JIT concept doesn't work; additionally there is a known production demand and that quantity needs to be fulfilled; I think this has little to do with JIT. In the case where cars can't be delivered the procurement folks that should have been watching the chip suppliers need to find another job; they dropped the ball on that Long Lead aspect. But that's my armchair quarterbacking. Toilet paper and tires on the other hand are predictable consumables and are what JIT inventory is designed around. Then there are replacement parts which have a science around availability for just in time inventory however, Rock Auto (for example) blew that out of the water.....
El Capitan
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Now is a great time to ‘hold em’. Worst time to buy anything unless you like overpriced stuff.
As for the chip shortages, the dirty little secret is that when auto manufacturers came crawling back for chips the chip manufacturers upped the prices due to costs associated w retooling manufacturing lines for the customized chips. The auto makers said pound sand. So the chinks said no problem.
Now there’s no cars.
As for the chip shortages, the dirty little secret is that when auto manufacturers came crawling back for chips the chip manufacturers upped the prices due to costs associated w retooling manufacturing lines for the customized chips. The auto makers said pound sand. So the chinks said no problem.
Now there’s no cars.
Great lakes pirate
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I called my Chevy dealer and let him know what I was looking for. He was able to get me exactly what I wanted in two weeks.
My neighbor wanted a GMC AT4 pickup and had one built. Looks like he will take delivery next week. That ended up being about 4 weeks from the time he placed the order til delivery.
The lots are pretty light right now. I would call the dealer and let them know what you are looking for.
