Re:Bad government policy is fueling the infant formula shortage
by bsder on Saturday May 14, 2022 @08:53PM
(#31384237)
The point is that you don't need a stockpile if you have supply diversity.
If you have two suppliers, one going down clobbers half of the market and the other company has to ramp up 100% to take over. That's simply not feasible.
If you have five suppliers and one goes down, the remaining four companies only have to increase 20% each to take over the load. That's not easy, but it's actually in the realm of being possible.
If you have two suppliers, one going down clobbers half of the market and the other company has to ramp up 100% to take over. That's simply not feasible.
If you have five suppliers and one goes down, the remaining four companies only have to increase 20% each to take over the load. That's not easy, but it's actually in the realm of being possible.