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Henry - you are one smart dude... :-) (archive)
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Posted by Jon Shafer on May 08, 2000 at 09:48:01:

In Reply to: Depends on a lot of variables posted by Henry on May 08, 2000 at 03:15:02:

You wouldn't believe the situation that we've got going right now because a certain manufacturer has as indequate supply chain of Motorola cell phone components... There are MY 2001 vehicles being held @ port, and the people who ordered them are going ballistic...

: The part/inventory lead-time that BMW allocated to their production has a lot of impact. Typically manufacturing production has a buffer for any supply chain interruptions. Depending on how BMW wants their annual financial report looks, they might or might not have a long enough lead-time. Some companies typically has 3 months' inventory, but then some, in order to keep their parts inventory low to reflect good financial standings, incorporate what is known in manufacturing as "Just in Time" for suppliers' delivery. If BMW has these factored in, then they are screwed because their entire shop-floor will be shutdown due to lack of parts.



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