May The Best Mode Win

Brent > wrote:

> On 2009-10-19, 1100GS_rider > wrote:
> > Keeping the inventory at the
> > lowest value added point as long as possible is a big win for everybody.
>
> It's an illusion. The cost is still in there. It's just part of what is
> paid for the part instead. The cost just changes what column on the
> spread sheet it is in. Now it's mixed in with raw materials, labor,
> tooling, and other costs to make the physical part. So then some
> engineer has to find ways to make the same part cheaper or redesign to
> make it cheaper. The physical part is cheapened to reduce the piece part
> price back to where it was before the inventory costs got added to it.

None of that is true.