Mechanism
Contingent Redundancy
TL;DR
Nestlé builds coffee inventory from 4-month to 6+ months when satellite weather data shows drought developing in growing regions.
Redundancy that scales up when leading indicators suggest elevated risk, scaling down when risks subside.
Business Application of Contingent Redundancy
Nestlé builds coffee inventory from 4-month to 6+ months when satellite weather data shows drought developing in growing regions. Airlines increase reserve crew during peak travel periods. This provides protection when most needed while avoiding continuous maximum redundancy costs.