Oil shortages: Transportation needs to go back to high inventories, not just-in-time delivery

Huge amounts of fuel are wasted as trucks arrive half full with just the needed parts at factories and warehouses and return empty. As oil shocks strike, fuel will be less available.  Large inventories will help by cushioning businesses from long and unpredictable delays in deliveries.  Large inventories of food (nonperishable especially) will also help prevent social unrest and famine.

Let’s go back to “push” logistics and high inventories:

logistics push pull more inventory

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