What is one major disadvantage of cannibalization?

Cannibalization, in the context of supply chain and inventory management, refers to the practice of taking parts from one unit to support the maintenance or repair of another unit. One significant disadvantage of this approach is its potential impact on overall inventory levels. When parts are cannibalized from existing inventory, it can lead to a depletion of available assets, thereby reducing the overall inventory that can be accessed for future needs. This can create shortages and affect the availability of equipment or parts needed for operations, potentially leading to increased downtime or delays in fulfilling demands.

Maintaining balanced inventory is crucial for any operation, as it ensures that there are enough resources available to meet ongoing requirements without interruption. Cannibalization can disrupt this balance, resulting in complications that hinder operational effectiveness. This makes the impact on inventory levels a critical concern when considering the practice of cannibalization.