Quote:
Originally Posted by rgjlawn
WHY NO ZL1 BLACK WHEELS FOR SALE ?????????????????? THERE ARE HUNDREDS AT WAREHOUSE # 75 IN MICH..............  :r eadthethread: |
And there are hundreds of calories in a Big Mac. So what?
GM service parts must maintain a certain inventory of parts (which can vary) for warranty repairs. Not sure if this is a regulatory thing or if it's a voluntary thing. If inventory drops below a certain % of the safe margin, holds are placed on retail sales. This can be due to a number of reasons, but mainly it's when demand outstrips supply. It's usually temporary though.
This happens more frequently in just in time (JIT) production which many companies are adopting more and more.
GM would love to sell you those parts in the warehouse. That's $$$ and a good profit margin. But gone are the days where GM buys trainloads of parts and puts them in warehouses where they sit for years. Inventory costs money, and reducing such is a cost-cutting staple for lots of businesses.