As demand for vehicles is increasing, the inventory to sales ratio (which serves as an indicator of the number of months of inventory that are on hand in relation to the sales for a month) hit rock bottom in July 2021, to levels not seen in modern history as depicted in Figure 1.
SOMETIMES THINGS MUST GO WRONG BEFORE THEY’LL GO RIGHT
Inflation is a growing risk for global supply chains as well — with price pressures coming from demand growth that outstrips supply growth, rising commodities prices and disrupted inventories. At the same time there is little evidence of quantitative models that incorporate the impact of inflation expectations on purchasing behavior from
