[Spooky23]

It depends on your objectives. One bad event can put many companies out of business. The auto industry is a good example because US-Canadian border issues and snow can fubar things for half the year.

Look at companies like Boeing with absurdly complex supply chains. The inventory numbers look good, but the factories are idle when a truckload of magic bolts is stuck in a blizzard in South Dakota.

It also increases actual cost. I supported a GE business unit as a supplier for awhile. We hosed them for stupid last minute orders due to this sort of thing. They would pay more for expedited shipping, overtime, waste money on leasing stuff to avoid capex, etc.