The folly of just-in-time supply chains | Letters

Hannah Walker says systems designed to minimise expenditure in the name of efficiency can end up less capable of fulfilling their actual purpose The article by Steven Strogatz and Alex Townsend on the dangers of excessive optimisation identifies a problem extending far beyond mat

Hannah Walker says systems designed to minimise expenditure in the name of efficiency can end up less capable of fulfilling their actual purpose The article by Steven Strogatz and Alex Townsend on the dangers of excessive optimisation identifies a problem extending far beyond mathematics and artificial intelligence ( The efficiency trap: why optimising everything can backfire, badly, 8 November ). The widespread adoption of just-in-time supply chains illustrates it perfectly. By eliminating inventories and spare capacity, businesses reduced costs and improved efficiency, but frequently transferred those savings into risks that remained invisible until something went wrong.

The disruption of global manufacturing during the pandemic exposed the consequences. Continue reading...