Graywolf wrote:

"My understanding from the area Pentax Rep is that Pentax no longer warehouses things. They come off the assembly line, are shipped to the distribution center in the Philippines, and are shipped out directly to dealers from distributors orders. Usually within 24 hours or so. That kind of means that they go in fits and starts as they dribble in until the pipeline is full then they kind of keep moving along until the item is discontinued and orders are no longer filled."

Thanks for the clarification. I don't know much about such matters, but see a problem with trying to save costs by this strategy. After the initial production surge for a new product, eventually the market becomes saturated and demand tapers off. It tapers off, but doesn't go away, because there are new users, and established users who take a while to decide on a product. So this means that without warehousing, production must continue either at a low level, or in fits and starts. Either approach raises unit costs. Economies of scale are lost. In the fits-and-starts approach, there must be a reduction in quality, because the assemblers lose and then must regain experience with the product. Warranty costs increase.

What am I not understanding here? Of course the standard approach today is to save a dollar now even if it costs ten dollars tomorrow. Somewhere, I presume, some economist has figured out the relative value of a dollar saved today versus ten dollars spent tomorrow. All this, of course, discounts customer satisfaction.

I guess we'll see the same fiasco when the DA 14 debuts.


Joe


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