Re:Carmakers feel chip crisis easing
by kasey_junk on Tuesday June 07, 2022 @08:53AM
(#31653498)
> That doesn't mean the optimal level of inventory is zero.
It does if the customer will wait for you to produce the good for the same price (or better!) as the inventoried one.
"Nothing catastrophic happened to the dealer" only in a world where dealership employees don't count. My VW dealer had to lay people off, not enough volume.
>Dealerships hate carrying extra inventory because it costs money to finance the vehicles until they sell them.
Well, yeah, this is literally every single retail business anywhere. Who wants to carry inventory? The point is to turn it over ASAP. That doesn't mean the optimal level of inventory is zero.