This week, there was a nice write-up in Supply Chain Digest about David Simchi-Levi's work on finding the optimal level of flexibility in your supply chain.
Here's the link: http://www.scdigest.com/ASSETS/ON_TARGET/09-06-09-2.PHP?cid=2506&ctype=content
No matter the economic conditions, firms strive to match capacity with demand. You can get much closer to matching these with some additional flexibility. What Prof. Simchi-Levi demonstrates is that a little additional flexibility in your supply chain can go a long way.