Originally Posted by M Paquette
Yeah, that just seemed goofy.
Where local production really helps is in defect management. Since there is a much smaller inventory of finished goods "in the pipeline", when a problem arises, like a bad batch of capacitors, less product has to be reworked or scrapped, and the rework facility, usually part of the factory, is also where the finished goods are.
Even though there may be a 15 day pipeline of those bad capacitors, it is far better to find out soon after final assembly and only have maybe 1 days worth of finished product, than to find out knowing there is another 15 days of bad product behind it.