The Chinese New Year brings manufacturing slowdowns in China. United States companies must plan on being proactive in managing supply by making early purchases and scheduling transportation before the slowdowns begin.
Building buffer inventory in the United States as a result of early purchases means storage capacity in the United States must be managed proactively as well.
- How to Avoid Producing and shipping Delay by the Chinese New Year (Angus Zhou, December 19, 2017)
- How You Should Plan Your Inventory Around Chinese New Year! (Goodlife Warrior, November 6, 2018)
This post is based on the Supply Chain Dive article, Why procurement planning is critical ahead of Chinese New Year, by Amanda Loudin, January 16, 2020, and the YouTube videos in the Video Spotlight. Image source: Shutterstock / Dmitry Kalinovsky.
1. Note in the article that the average shipping time from China to the United States is about 30 days. How does this lead time impact inventory levels at United States facilities?
Guidance: This question is designed to get students to reflect on the interaction between lead time and inventory levels. Ask students to suggest better ways to accumulate the additional Continue reading