LVMH, GM , Tesla, Razer are all companies that said they’re switching their line of production in times of crisis.
How are they able to do it so quickly? Im talking about their inbound logistics, supply chain, their products and also the machines used?
IIRC (really vaguely) these big companies invest heavily into machines that can only do one task/one item/one part of a product, but do it in extremely efficiently. Wouldn’t switching the line of productions make those type of equipment obsolete??
In: Economics
No, companies invest in machines that have multiple applications. If a company bought a machine that could only do one item, as soon as the next keyboard came out from razor they would have to junk that machine unless it made key caps.
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