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Back to the home page and map, from TryOwning · Supply chain and logistics · Lesson 4
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Supply chain and logistics · 13 min

When the chain breaks

In 2021, new cars sat unfinished for lack of a chip smaller than a fingernail. One broken link can empty shelves on the other side of the world. Here's why, and how companies protect themselves.

Ticket 01 · The guess

How many days of chips were left?

Companies that build cars, phones and medical devices need computer chips. In 2019, buyers of the hardest-to-get chips kept about 40 daysgao.gov ·2021 of them on hand. By 2021, during the chip shortage, how many days' worth did they have?

20 days
0 days40 days
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Sources and every number (1)

Sources

  • Semiconductor Supply Chain: Policy Considerations from Selected Experts for Reducing Risks and Mitigating Shortages (GAO-22-105923, July 2022) · U.S. Government Accountability Office, 2021

Every number

  • 40 daysgao.gov ·2021 · 2019: buyers' stock of hard-to-get chips, from Commerce's 2021 survey as GAO reports it (on the report's page about inventories).
  • 5 daysgao.gov ·2021 · Less than this, 2021: buyers' stock of hard-to-get chips, from Commerce's 2021 survey as GAO reports it.
  1. Lessons›
  2. Inside a business›
  3. Supply chain and logistics
  • ·Before this: Moving it: trucks, ships, warehouses and the last mile
Skip to the lesson
Back to the home page and map, from TryOwning · Supply chain and logistics · Lesson 4
Part 1 of 3Part 1 of 3, 0 done

Supply chain and logistics · 13 min

When the chain breaks

In 2021, new cars sat unfinished for lack of a chip smaller than a fingernail. One broken link can empty shelves on the other side of the world. Here's why, and how companies protect themselves.

Ticket 01 · The guess

How many days of chips were left?

Companies that build cars, phones and medical devices need computer chips. In 2019, buyers of the hardest-to-get chips kept about 40 daysgao.gov ·2021 of them on hand. By 2021, during the chip shortage, how many days' worth did they have?

20 days
0 days40 days
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (1)

Sources

  • Semiconductor Supply Chain: Policy Considerations from Selected Experts for Reducing Risks and Mitigating Shortages (GAO-22-105923, July 2022) · U.S. Government Accountability Office, 2021

Every number

  • 40 daysgao.gov ·2021 · 2019: buyers' stock of hard-to-get chips, from Commerce's 2021 survey as GAO reports it (on the report's page about inventories).
  • 5 daysgao.gov ·2021 · Less than this, 2021: buyers' stock of hard-to-get chips, from Commerce's 2021 survey as GAO reports it.
  1. Lessons›
  2. Inside a business›
  3. Supply chain and logistics
  • ·Before this: Moving it: trucks, ships, warehouses and the last mile