The possibility of sudden spikes in prices during a crisis also incentivize “speculators” to stockpile the good in advance. If they buy during normalcy in anticipation of a crisis, they smooth out the price curve by raising the price before the crisis has hit. As they hold the inventory in the mean time, these speculators are effectively creating a buffer in a potentially otherwise just-in-time supply chain.
The possibility of sudden spikes in prices during a crisis also incentivize “speculators” to stockpile the good in advance. If they buy during normalcy in anticipation of a crisis, they smooth out the price curve by raising the price before the crisis has hit. As they hold the inventory in the mean time, these speculators are effectively creating a buffer in a potentially otherwise just-in-time supply chain.