To the Editor:
“10 Ways to Cash In on the Shortage of Just About Everything” (Cover Story, May 28) indicates the shortcomings of just-in-time, or JIT, manufacturing when supply chains are interrupted.
Some supply-chain managers are considering moving back to “just-in-case” inventories. But consider how JIT has improved the quality of factory output. JIT discovers defects immediately, rather than “storing” them in mid-production inventory, stockrooms, and warehouses. Without JIT, correcting quality defects requires moving inventory, reworking, and restocking. Engineering and design changes complicate the logistics even further.
The improvement in quality provided by JIT can be seen in the cars and sport utility vehicles of today. Despite the thousands of parts and high-tech equipment in today’s vehicles, one hardly sees breakdowns and vehicles stranded on the highway, compared with what was common in the 1960s and ’70s.
Jack Glabe, Northbrook, Ill.
Shorting Planet Fitness
To the Editor:
I’m excited to respond to Bill Alpert’s review on a company that encourages body fitness for young adults and, hopefully, begins a lifetime commitment (“Planet Fitness Stock Could Drop 50% as Growth Slows,” May 28).
Let’s face it, Covid-19 and home membership are history. Planet Fitness CEO Chris Rondeau, the Renaissance man of bodybuilding, foresaw the desire to fill in the gap between expensive health clubs and park district classes. Planet Fitness provides Generations Z and X with affordable fees, convenient locations and hours, and, most importantly, a social and physical high.
When Teton Fund Management’s Andy Matthes shorts this company, he should be aware of the effects of shorting Tesla stock a few months ago.
Have to run—don’t want to be late for my Zumba class.
Marilyn Ranieri, Palatine, Ill.
To the Editor:
In “Silver Prices Are Lagging. Investments in Renewable Energy Should Change That,” Commodities, May 27), Myra Saefong indicated that investments in renewable energy should help lagging silver prices. Yes, that will help, but a much bigger factor right now is investment demand.
From 2008 to 2019, global silver net investment mostly fluctuated at 200 million to 300 million ounces per year. In 2020, that drastically changed, with net global investment demand at more than 500 million ounces.
With silver still about 40% below its 1980 high, it is the most undervalued metal on the planet, and the U.S. Mint has just declared a “global silver shortage.”
Due to very low silver prices over a long period, the world is down to a handful of primary silver miners that derive half or more of their revenue from silver. The cure for a global silver shortage and almost no remaining primary silver miners is much higher prices.
Paul Yusem, Lombard, Ill.
Send letters to: firstname.lastname@example.org. To be considered for publication, correspondence…
Click here to visit the source.