Supply Chain Crisis to Extend Through 2022, Requiring Structural Overhaul

What if port congestion persists through 2023 and warehouse capacity remains constrained?

Simulate a scenario where Port of Los Angeles throughput remains at 60 percent of pre-disruption levels, leading times extend by 4-6 weeks, and regional warehouse occupancy rates stay above 90 percent. Apply these constraints to inbound container flows from Asia and assess impact on retail replenishment cycles and inventory turnover.

What if inventory policy shifts from just-in-time to 6-week safety stock?

Simulate increasing safety stock levels from just-in-time minimums to 4-6 weeks of buffer inventory across high-velocity SKUs in retail and automotive. Calculate working capital requirements, warehouse space needs, and carrying cost implications. Compare to service level improvements and reduced expedited freight costs.

What if manufacturers shift 30 percent of production closer to North American markets?

Model the effect of relocating production facilities from Asia to Mexico, Central America, or nearshore locations in North America. Assume shipping costs rise 15 percent but transit times drop 40 percent and inventory carrying costs decrease 25 percent. Calculate total landed cost and service level improvements.