I saw an interesting documentary on MSNBC about the gas and oil crisis around the world. It wasn't until I sat down to blog today that I realized that this crisis deals very heavily with the topic of inventory management. A few weeks ago in Atlanta there was a major gas crisis. This crisis was largely to do with demand being much larger than supply. This crisis caused even more panic among consumers which then caused a bull whip effect which prolonged the gas crisis.
The documentary titled "the hunt for black gold", talked largely of the depleting inventory of oil around the world. The United States accounts for somewhere around three to four percent of the population yet they consume twenty five percent of the world's oil. Many experts believe that this is do to the growing economies in China and Russia which are also beginning to deplete the world's oil inventory.
So how can inventory management help this oil crisis? I'm not sure if inventory management can help a resource that has a growing demand and a depleted supply. However if anyone reads this and has any ideas of how inventory management can help this problem please share.
Subscribe to:
Post Comments (Atom)
2 comments:
I don't think it is a matter of inventory. This problem should be attributed to the inequilibrium between supply and demand. That is, too little supply with too much demand. Inventory management doesn't really help in this case.
What is your opinion?
That's true that the problem we have in the oil industry are more related to the traditional supply/demand relation, there is no reason why better inventory practices should help the situation. You should identify such practices.
Post a Comment