Sunday, March 13, 2011

Just In Time Manufacturing

Every time I go to pick up my next supply of medicines from the local pharmacy I wonder about the fact that the Insurance Companies hold me to a pretty narrow window for picking up my new meds.  I wonder about the impact of some natural disaster on delivery and me finding myself without my blood pressure medicine or something else.  And, if not me, what about one of my friends in town, whose schedule is different from mine and they get tagged with some "black swan" event.  In any event, it would seem to me that this lack of inventory, either in a medicine chest, at the store or in some warehouse, will someday result in someone being without their meds for several weeks.

Now we get to to run a mini-test of this idea.  The earthquake and tsunami in Japan will likely disrupt some manufacturing.  I have not seen much discussion of this, but here is Ms Megan McArdle of The Atlantic, talking about it.
The auto industry looks to be affected, with supplies potentially disrupted for several months. Memory chip prices may rise as the quake seems to have damaged some production runs.
I am hoping my meds come from the US and not from Japan or are not transshipped through Japan.

Hat tip to the Instapundit.

Regards  —  Cliff

1 comment:

  1. According to last night's 60 Minutes expose, there is a fair chance your meds come from a sub rosa drug maker in a tenement somewhere in Peru, or Ecuador, or India.....and growing industry that portends to make the "other" illegal drug trade a lemonade stand operation by comparison.

    ReplyDelete

Please be forthright, but please consider that this is not a barracks.