How India helped solved the MAX inventory issue

After the grounding, Boeing’s MAX production

kept operating, not knowing how long the grounding would last. Supply chains are sensitive, and shocks cause chaos. Boeing, a century-old firm, knows this and was determined not to shock the supply chain.

Circumstances evolved, though, as the grounding ran far longer than expected. Boeing could not afford to keep production rates steady without deliveries, so it had to pass the shock on to its supply chain.

As the MAX crisis evolved, Boeing ran into a situation where its costs stayed steady but revenues plummeted.  The 737 is Boeing’s “bread & butter” program.  Disrupting this program has catastrophic consequences.  Topping it off, air travel virtually stopped as the pandemic raged.  It was the worst of storms for Boeing.