“Companies that produce items like baby formula - in which demand is typically steady over time - have troubles catching up when there is disruption, said Rudi Leuschner, director of the masters in supply chain management programme at Rutgers Business School.
And as parents rush to buy as stories of empty shelves spread, that only makes the problem worse, he warned.
”It’s not a situation where you can just snap out of it,” he said. “It was designed to run at one speed.”
While this year’s formula shortage may expose the fragility of the supply chain, it may not be enough to make a business case for backup inventories, Prof Leuschner added. ”