Posted on 06/27/2011 5:05:14 PM PDT by The Magical Mischief Tour
Whatever you’re ordering is produced in ‘batches’: a factory or factory line or a machine in the factory is set up to make that product. Enough to fill orders -and some ‘inventory stock’- is produced and then something else is made.
Presently they make a very small amount of ‘inventory stock’ so they run out before the schedule calls for making it again.
They don’t run out because they have a lot of orders but because they don’t make enough.
In their min-max equation efficiency is maximized at the cost of supply.
I think one should bag Just In Time Inventory for the forseeable future. Stock up when you can, and design around what you cannot get.
I think one should bag Just In Time Inventory for the forseeable future. Stock up when you can, and design around what you cannot get.
Analogous to "shock" in a medical sense: all the blood vessels open at the same time leading to a disastrous drop in blood pressure.
No cheers, unfortunately.
This may be the wrong thread to ask, but, riddle me this!
It seems that EVERY time I attempt to purchase items needed for MY manufacturing efforts, they are on back-order.
US Manufacturing companies going Gault
This may be the wrong thread to ask, but, riddle me this!
Not at all.
You asked a great question....
The best answers come from excellent questions.
We've had to resort to importing yarn in several instances because there are so few suppliers that manufacture what we need domestically anymore. The few who do, have spotty supply or are on perpetual backorder. I suspect they're operating on a wing and a prayer and are only themselves manufacturing what they know to have customers at any given moment, leaving gaps in the product available to sell. Enough people screaming for this or that item leads to eventually fulfilling the demand, but they no longer stock it, and truth be known don't plan to stock it.
Sound about right?
The "deception" you mention is the best deception of all, right in front of peoples noses.
GDP is a product of private economic activity IN ADDITION to all government expenditures and "investments".
We have spent somewhere between 3 and 4 TRILLION dollars in the last 3 years propping up GDP, fully 10% of the economy has been the product of the printing press.
Were it not for government spending the GDP would have shown between 10 and 15% shrinkage annually over that same period.
A depression by ANY measure.
Unexpected??
LLS
A certain German manufacturer of cryogenic valving moved their production to India about a year ago... they lost six months of production due to quality control issues and had to move production back to Germany... those orders will be filled by December or January. There are many reasons for shortages and these are examples of why.
LLS
Your explanation makes perfect sense. It also explains a strategic manufacturing contraction done to protect assets. Once competitors are out of the market prices and production of goods can be increased to return to profitability.
Japan’s meltdown happened in March - lots of economic changes happened around the same time. Could that be a factor?
Nothing will turn our economy around until we stop sending jobs and money to China.
Nothing.
Not as much as projected.
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