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The global economic depression struck India in September-October 2008. There was a slump in the market due to depressed demands. Customers were not ready to spend. Other countries, like the USA, ete have also witnessed similar depressions in the market on different occasions. During economic downturn in India in 2008, the supply chains of auto sector started getting choked with raw-material, work-in-process inventory, and finished vehicles at different stages. Sources within a leading auto manufacturer of India said, "it has been observed in the month of October (2008) across the industry that unavailability of finance coupled with high interest rate is forcing the customers to postpone purchases." Tata Motors understood it well that immediate step must be taken to match demand with supply and avoid unnecessary build-up of inventories in the company or with its dealers. Therefore, to tackle the slump in demand, it decided to shut down its Jamshedpur plant, which produces commercial vehicles. The process started initially for three days, starting from November 6 and again for five days, starting from November 25. In another plant at Pune, which has a strong well-trained workforce of over 10.000, "Tata Motors" produces passenger cars like Indica, Indigo, Safari and Sumo and also light, medium and heavy commercial vehicles. This plant was temporarily planned to stop production during November 21 to 26 . Similarly, the Lucknow plant of Tata Motors manufactures a range of buses including low-floor CNG, and high capacity buses. This plant took a similar block closure from November 10 to November 15, 2008. Other auto manufactures were no way different. The Hinduja Group's Ashok Leyland also started feeling the pinch of high inventory due to slump in the market. It decided to bring down the manufacturing at its Chennai plant to just three days per week. Almost all manufacturing sectors in India went through this phase at that point of time. Government suggestion to the industry was quite interesting. According to the then Finance Minister, Mr. P. Chidambaram, this situation was entirely manageable and within industry's control as he further said in an interview that cutting down the production by planned closure of manufacturing is a short-sighted approach. There is a need to stimulate the demand by cutting down the price and providing liquidity in the market. Source: Ausiness Standard, 23 November 2000. Questions 1. Other than planned closure of manufacturing units, what are the other ways to flush out inventory from a supply chain? 2. Economic depression in India was not too sudden as there were warning signals coming from USA economy. Then, why did Indian auto sector still struggle with the unplanned inventory? 3. Why did the then Finance Minister advocate a solution other than closure of manufacturing? Do you expect a cascading effect of economic depression due to planned closures