The concern is the rate at which SM-3 missiles and other ordnances, including the SM-2 and SM-6, are now being fired. The U.S. is now depleting its stockpiles faster than the missiles can be replaced, and that has raised alarms.
I doubt that the majority of these sub-contractors only have the capability to create 100widgets year.
I see you have never heard of Just-in-time manufacturing. The current standard for almost all western firms is to maintain the absolute minimum required production capacity.
Just in time manufacturing addresses warehousing issues, it does not have any affect on maximum capacity. If a machine can produce 1000/widgets an hour, but I can run it for 10minutes a day to produce 167 widgets to meet my line on the demand curve while saving on warehouse costs, then that is what I’m going to do. Additionally I’ll restructure my workers so that instead of needing 100 workers for 8hrs to produce 8000 widgets a day, I’ll simply hire 16 workers ( or more likely 2 workers plus 10 part-time workers) to produce 167 widgets in a day. I don’t spend any time or effort creating a machine that can only run for 10minutes a day and produce only 167 widgets.
The capacity of my widget machine is still 8000/day.
e: Or more likely, I’ll be creating 167 widgets for raytheon at 3x profit, I’ll be creating 20 widgets for north korea at 4x profit, and 4000 widgets for the NCCCP as that is part of their 20 year plan.
I see you have never heard of Just-in-time manufacturing. The current standard for almost all western firms is to maintain the absolute minimum required production capacity.
Just in time manufacturing addresses warehousing issues, it does not have any affect on maximum capacity. If a machine can produce 1000/widgets an hour, but I can run it for 10minutes a day to produce 167 widgets to meet my line on the demand curve while saving on warehouse costs, then that is what I’m going to do. Additionally I’ll restructure my workers so that instead of needing 100 workers for 8hrs to produce 8000 widgets a day, I’ll simply hire 16 workers ( or more likely 2 workers plus 10 part-time workers) to produce 167 widgets in a day. I don’t spend any time or effort creating a machine that can only run for 10minutes a day and produce only 167 widgets.
The capacity of my widget machine is still 8000/day.
e: Or more likely, I’ll be creating 167 widgets for raytheon at 3x profit, I’ll be creating 20 widgets for north korea at 4x profit, and 4000 widgets for the NCCCP as that is part of their 20 year plan.