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Flexibility in production is key to develop high performance Supply Chains.
The holy grail of supply chain design is to match supplies with demand on an ongoing basis. If the demand goes down, production must also go down, and vice versa.
This can be achieved only if production is inherently flexibile and responsive to the ever changing demand patterns.
If the company finds it difficult to adjust production levels or mix on an ongoing basis, you can be pretty sure that stockouts and inventory pile ups will continue to bother you.
Work on improving production flexibility and responsiveness if you want inventory buffers to be healthy.