The production of goods had a direct effect on the economy. Knowing
the effect of flexible manufacturing on the circular economy will provide some new insights.
Production on demand=circular economy=exponential manufacturing (flexibility).
Over-supply of certain industrial products=mass manufacturing (automated assembly line).
________________________________________________________________________________According to MI.Tugan-Baranowsky, the over-supply of certain industrial products and the subsequent fight for markets is one of the antagonistic features of industrial capitalist automation.
________________________________________________________________________________The missing link between economic conjuncture and monetary fluctuations is the hidden factor of economic rent=liquidity is pumped into assets (e.g. real estate, natural resources=land) and productivity stagnates.
Flexible manufacturing can help to get out of this vicious circuit and to build a circular economy.
However, economic rent must be checked by taxation.
https://www.henrygeorgefoundation.org/the-science-of-economics/economic-rent.html
JIT (Just in time manufacturing) concept has been known for some time. This minimizes inventory size and assumes that every part of the manufacturing cycle runs like a well-oiled machinery including prompt arrival of raw materials, efficient manufacturing yield, no natural disasters and quick turn around time of delivering the product to the customer. Based on demand of different products it also allows a quick change of tools set up to switch to a different product at short notice making it flexible and reacting to customer needs.
The hidden cost in the production process is hard to measure whcih creates some discrepancy if you look at the production process instead of consumption process. We already know that the consumption CAPM has been approached for decades, but scholars do not find good enough explanation for the economic growth with the asset pricing. It brings us to figure out how much the hidden cost is absorbed by workers, land and health cost of human beingds in every process. We see giganic waste plastic in the ocean. We see air pollution and climate change all around the world. We see the sea level increasing every year. We see hot sumeer to near 40 degree of cel...We see the doom of the earth. But we could not give a good measure of production process with the asset pricing. We have no good enough the production-based asset pricing model.