Paper — Stockpiling Isn't the Solution

By manufacturing an extra month's worth of paper, Kullman explains, there would only be 11 month's worth of orders for the following year, which would drive up costs on all sides—the variable costs in a 13-month year and the problem with fixed-cost absorption in an 11-month year.

While Kullman is adamantly opposed to stockpiling paper, he believes sooner, rather than later, should be the motto. By waiting until October—generally the busy season—publishers could be catching prices on an upswing, leaving them with high-cost inventory in a falling paper market.