When people buy a little more than what they usually need, we call it speculation. When they buy much, much more, we call it hoarding. What happens when people hoard? Do the enterprises that supply the goods gain in sales and profits? Do hoarders make money? Hoarding happens when people perceive they might not beContinue reading “Hoarding and How to Discourage It”
Tag Archives: inventory
A Feasibility Study Starts with Defining the Problem
An employee has an idea and brings it to her boss. The boss says “good idea!” and forms a team to do a feasibility study. The team determines the idea feasible for a new product. The boss authorises the introduction of the new product. The product, however, does not sell. Customers think it’s too expensive. Continue reading “A Feasibility Study Starts with Defining the Problem”
Balancing Unstoppable Production and Benefiting from It
I used to work in a flat glass factory. The flat glass factory I worked at used float technology. It starts with a furnace that melts raw materials such as silica (sand), soda ash, dolomite, and limestone. Molten glass flows from the furnace to a tin bath, a chamber of molten tin, in which theContinue reading “Balancing Unstoppable Production and Benefiting from It”
Four (4) Supply Chain Scenarios and What to Do When They Change
We don’t know when it’s going to rain. So, we build dams. Dams are reservoirs, inventories of fresh water. Having a reservoir assures an adequate supply of water to meet the continuous demand of communities. Supply chain managers face a myriad of challenges in their operations. But one can categorise some of these challenges whenContinue reading “Four (4) Supply Chain Scenarios and What to Do When They Change”
What Is the Right Supply Chain Model for New Products?
A lot has to get done when it comes to launching a new product. Aside from marketing and selling, enterprise executives need to know how much to make, how much to stock, and how they’ll spread that stock. If the new product is replacing an older one, the enterprise would need to figure out whatContinue reading “What Is the Right Supply Chain Model for New Products?”
What is the Right Way to Serve Customers?
A manufacturer of metal parts hires a management consultant to help stimulate sales. The consultant at once suggests the manufacturer prioritise production of its top twenty (20) best-selling items. The manufacturer thus makes one month’s worth of stock of each of the twenty (20) top-selling items. Three (3) months later, the stock is hardly selling. Continue reading “What is the Right Way to Serve Customers?”
Ellery's Essays 