#TESLA INVENTORY METHOD FULL#

The result, of course, was what came to be known as “just-in-time” inventory management, as championed by firms such as Toyota. Both made a strategy with less safety stock more viable. Over the years, information technology contributed to more complete knowledge about inventory status as well as more dependable transport.

I found significant value-expressed in lower inventories and fewer out-of-stock situations-in channel-wide inventory knowledge.

#TESLA INVENTORY METHOD FULL#

In another, they had full information about inventory quantities at every level in the channel. In one simulation, students had little knowledge of inventory levels other than those for the company they were managing. Fluctuating demand at the retail level would generate exaggerated fluctuations-a “whipsaw” effect-in expected demand and inventory planning at the back end, or manufacturing level, in an effort to meet possible future demand. In my approach, my Ohio State students managed inventory at various levels in a distribution channel.

One thing that may have helped generate the HBS offer was an experiment I performed using my own crude version of what would become known as the “beer game.” One of my interests: The value of improved inventory information in a distribution channel on overall inventory levels and costs. 'The result, of course, was what came to be known as 'just-in-time' inventory management, as championed by firms such as Toyota.' In those days, there was fascination with air freight and the trade-off of inventory and transportation costs-as in spending more for air transport in order to spend less on owning inventory, thereby optimizing what we called the “total cost curve.” (I can still draw those curves in my sleep.) A plentiful supply of “safety stock” was the order of the day for those using slower forms of transportation. I was invited to join the HBS faculty not to teach marketing, service management, or general management, among my later teaching assignments, but to help breathe life into efforts to teach logistics. It’s a throwback to the days when railroad management was all the rage in the original Harvard Business School curriculum among those interested in studying business in 1908. Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer.Logistics issues have taken on unexpected and possibly unwanted “glamour” among those who study business and economics, thanks to the COVID-19 pandemic and its global aftermath. The firm's three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with its market cap crossing $1 trillion for the first time in October 2021.? The EV king's market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford.Over the years, Tesla has shifted from developing niche products for affluent buyers to making more affordable EVs for the masses. The company's flagship Model 3 is the best-selling EV model in the United States. Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share.

Tesla inventory method