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Politics : Formerly About Advanced Micro Devices
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To: Tony Viola who wrote (121653)8/3/2000 10:38:28 AM
From: chomolungma  Read Replies (1) of 1576881
 
Tony,

Inventory cycles can be brutal. If indeed there are large stocks in the pipeline then production will have to be lowered not just to the point where it is in line with demand but lower until inventory is brought down to reasonable levels. It's classic that a period of shortage ends in a period of excess inventories because everyone double orders during shortages and before they know it, it's too late to stop.

Best, Cho
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