Just read an interesting bit on @TheVerge about Apple having supply issues when trying to build in the US and it's exactly what @bunniestudios described: China has capability, US has inventory. Need a part a certain way? Chinese suppliers will make it. US suppliers? Not in stock
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Came up in my I/O class about this ~15 years ago. Orgs incorrectly frame the concept of value and waste. Experienced it first hand as well. Orgs are afraid of "idle time" and overvalue sub-components. In reality, items sold are +$, components warehoused are -$.
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Replying to @HexStarDragon @withaphsound and
That mentality causes, say, a car company to produce 400 wheels but only 25 frames. "I didn't hire the wheel makers to sit idle" + "I gained 300 x (price of wheels - price of materials) by having 300 wheels sit in my warehouse".
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Also partially influenced by tax code...cash in bank is taxed at year-end, but inventory is an asset that's not immediately taxable. There's a lot of stupid things that happen in the supply chain because of tax code.
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