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Comment by hedora

8 hours ago

There was a lot written about this in the 1990s during the rise of globalization and just in time supply chains.

Basically, you build a big warehouse and keep it full when prices are below projection.

This is equivalent to investing capital at a negative interest rate, so it’s not done anymore. Instead, the system is designed to pass supply shocks on to the consumer when possible.

I’ve noticed the local grocery stores have started replacing shelf price tags with little computers so they can reprice food in real time. (And hire fewer stock people),

Anyway, the keyword you want is “just in time supply chain”.