What the covid-19 pandemic has revealed, at least as far as the US is concerned, is how delicately balanced the supply and distribution systems are. As long as things are normal, everything appears to run smoothly. But given a large enough disruption, the system can not only not cope, it cannot reconfigure itself quickly enough to meet the challenge. In this case, we have discovered that the supply of goods and services is highly dependent on a just-in-time supply chains for each item that are finely tuned for maximum efficiency and eliminate the need for costly stockpiling of supplies. But the sudden change in the way people live and work has resulted in shortages in some areas along with gluts in others, with no means for quickly redistributing the resources to reach a new equilibrium.
[Read more…]

