Quote:
Originally Posted by krayzie
This doesn't make sense with modern just in time inventory control.
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just in time inventory control is harder in practice and most if not all manufacturers will carry more excess based on sales forecast. Parts stored for available repair parts, etc. But as forecasts drop, production drops, and inventory maintained based on the initial forecast may be released to prevent excess storage time.
Parts aren't built to order. Not only is that extremely costly for the manufacturer, but best practice is to always have inventory on hand when the customer needs it so there is no delay; therefore, there will always be some excess, but fluctuates based on actual use over time.