BoJ Research: Japan's Auto Supply Chains Are Exceptionally Long, Bottlenecks Can Significantly Dampen Production
A Bank of Japan research paper found that Japan's manufacturing supply chains, especially in the auto sector, are exceptionally long and large-scale. Firms at the center of these chains exert a greater influence on individual suppliers' production activities. The study also revealed that supply constraints in products identified as potential bottlenecks can significantly dampen macroeconomic production, and holding inventory can serve as an effective measure to mitigate these impacts to a certain extent.
Source:日本央行公告 · Source Link
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