(28-04-2025, 07:31 PM)king1 Wrote:JIT inventory is essentially the model used for our major supermarkets. The stock held in a supermarket is typically 3 days worth of sales. The system works well to keep storage and handling cost mitigated but falls down if there is a break in the usual supply chain such as in the case of natural disasters or other civil disruption. Those that use the supermarket as their pantry by shopping every day or two put themselves at risk of exhausting their grocery supplies as they have delegate resilience of supply out of their immediate control.(28-04-2025, 07:25 PM)zqwerty Wrote: I spent a lot of my working life in factories and "just in time" results in poorer quality goods and if it's to the factory supply, inefficiencies within the factory and rushing to assemble for market which leads to poorer quality product for the customer, should be selling cheaper not more expensive.
Putting pressure on assembly and supply lines results in getting crap and is a result of poor management practices but management loves it because it makes them seem to be in charge. Just another fad that has bad effects on product quality.
Management goes by paperwork not actual quality which is what experienced staff actually observe.
JIT has been in use in many industries for decades, car manufacturers for instance... It's primary benefit is reduction in stock holding and associated costs...
One of the major dangers faced by city dwellers in contrast to those living closer to production systems (rural areas) is that fragility of supply of consumable items and especially food is far greater. The most recent demonstration of this was during the COVID epidemic and lockdowns.
(28-04-2025, 06:55 PM)Lilith7 Wrote:Indicative of greed, or a baked in survival mechanism? Back in primitive times the last remnants of the most recent mastodon kill would have been a prized asset and flippantly allowing the neighbouring cave dwellers to consume it would result in hunger or worse so its worth increases until a successful hunt could replace it. But if your neighbour had a pot of honey they'd squirreled away you might be tempted to trade some meat for it, especially as the meat was at risk of spoiling. Supply and demand in its most basic form.(28-04-2025, 05:00 PM)harm_less Wrote: That comment just proves you have no understanding of the basic functions of the market or the potential contributing factors that lead to supply shortages. Often such factors put upward pressure on prices, for example insufficient manufacturing capacity which results in a failure to reach the economies of scale that could otherwise reduce price.
Also slow moving stock that needs to return the cost of the warehouse space that it has occupied while waiting for a buyer. That is often the reason car franchisees charge so much for replacement parts, or increasingly adopt a 'just in time' supply model which relies on express overnight deliver of goods from a centralised warehousing facility (or airfreighted importation) both of which also add expense to the item supplied.
Shortages of basic items are not a good reason to increase prices. Doing so smacks of greed.
Someone selling overpriced bread in times of shortage of ingredients to make bread is making their profit at the expense of others.
Greed tends to happen often with what was sometimes called the 'black market'.