Case Discussion Questions

Why, despite industry expectations, did demand for automobiles rebound strongly in the second half of $2020$ despite the ongoing COVID pandemic? What does this tell you about difficulties for forecasting demand?

What were the root causes of the chip shortage? What are the lessons here for managing supply chains?

What were the financial benefits to automobile makers of lean supply chains for chips? How did the COVID pandemic expose the risks of a just$-$in$-$time approach to managing inventory flows?

Could the chip shortage that hit the automobile industry in $2021$ have been foreseen? What strategies could automobile companies have adopted to reduce the risks associated with the supply chain disruptions that they experienced in $2021?$ Do these strategies have a downside?

The COVID pandemic was a black swan event which may not occur again for a long time. Given this, should automobile companies change their supply chain strategies, or would it be better to go back to business as usual?

Design Element: naqiewei$/$DigitalVision Vectors$/$Getty Images