Lean supply chains in the automotive industry have been based on reducing inventory levels, using just-in-time (JIT) shipments and consolidating purchases from suppliers (i.e. reducing the number of suppliers). However, recent events are causing many car manufacturers to rethink the way they design and manage their supply chains For decades, car manufacturing companies have been working on improving the efficiency of their supply chain through lean operations but two recent events showed managers that being "too lean" might be risky for companies. One was the devastating earthquake and tsunami that took place in Japan in March of 2011. This natural disaster caused many Japanese automotive suppliers to stop their production activities, sometimes for months, resulting in worldwide shortages for some key components. The other event was a devastating explosion in early 2012 at a key German chemical plant that produced a special type of resin used in fuel lines. Because many automotive companies had been studiously eliminating redundant suppliers from their supply chains to reduce complexity and costs, suddenly there was no backup plan. Tragedies such as these could negatively impact the operations of several car companies, resulting in model shortages and idle assembly lines if alternative suppliers cannot be found. Another aggravating factor has been the consolidation of several car component suppliers and the reduction in supplier number. Many of the smaller suppliers simply do not have the money, labor, and capacity to deal with last-minute orders or large fluctuations in demand. Other suppliers have gone out of business because of an inability to deal with the fast-changing competitive global landscape. The automobile industry is not alone in dealing with supply chains that may have been cut too lean. In November 2011, severe flooding in Thailand impacted the supply chains of many high-tech companies. Although not all companies were directly affected by flooding in their production facilities, most found that the suppliers for their key components were. For example, Seagate, a provider of hard drives for PCs and servers, was expecting that disruptions to its operations might not get resolved until 2013. Apple, Hewlett Packard, and Intel were just some of the other companies expecting negative carning impacts from the natural disaster. Realizing the fragility of SP22 Acta