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A comment on Chip shortages due to lack of investment in right fabs. Parent comment

Re:Chip shortages due to lack of investment in right fabs by marcosdumay on Monday January 31, 2022 @11:06AM (#30149522)
> These types of solutions (JIT or Lean) are designed to prevent the bullwhip effect and ensure that suppliers have predictable and constant demand, rather than feast or famine.

If that were true, they would have ensured the chip manufacturers had constant demand, rather than a famine period followed by a huge feast.

The truth is that just in time is being used as a cost minimization procedure, by offloading the demand risks into the suppliers and increasing any feast or famine event. That maximizes profits as long as there isn't an emergency, what seems to be the favorite administration goal of the current age.

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Re:Chip shortages due to lack of investment in right fabs by throwaway2048 on Monday January 31, 2022 @11:50AM (#30150112)
If there is an emergency, all the large companies can simply go to the government for free money, why would they care about doing anything but absolute profit maximization.
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