Economics: How the World Ran Out of Everything

The problem raised by the authors of the article touches on a highly relevant topic in the context of the current pandemic. With the arrival of COVID-19, many store shelves were empty, while city dwellers were buying up vast stocks of antiseptic, toilet paper, and food supplies. Unfortunately, the sellers were not prepared for this turn of events, which led to the devastation of stocks. Goodman and Chokshi (2021) look at the global market in the context of a pandemic, analyzing the causes of sudden supply shortages. According to their research, the reason for this phenomenon is the adoption by global companies of Toyota technology, the so-called “Just In Time.” However, while Toyota itself has adapted relatively well to the pandemic, the rest of the companies have collapsed. This strategy involves bringing supplies to factories as needed without stockpiling them. As part of the pandemic, when supply disruptions began abruptly, this technique led to massive downtime in all areas. Although such problems have arisen in the past, this issue is now particularly acute since the existing strategy needs to be revised.

I agree with the authors of the article regarding the need to develop an alternative approach. Although the existing strategy is suitable in stable conditions, it is precarious to any external influences. Some of the interventions cannot be predicted, such as natural disasters. A pandemic or any other large-scale event can affect the operation of the entire global economy, as a considerable number of industries has adopted Toyota’s strategy. At the slightest discomfort, a vast number of people are in danger. In this case, not only the owners of companies and employees of factories are affected, but also the end consumers who experience a shortage of goods at the most crucial moments. Therefore, it is necessary to develop new management methods based on the principles of supply chain sustainability, not on lean manufacturing theory (Goodman and Chokshi, 2021). Companies must develop a resilient supply network, even in the face of global disasters. Only with the ability to anticipate the need for this or that type of inventory, manufacturers and the entire world economy can effectively exist in today’s constantly changing world.

Reference

Goodman, P., and Chokshi, N. (2021). How the world ran out of everything. The New York Times. Web.