Lol. Good one, Sage. Law school, not to mention college and graduate school, were after four years as a soldier. In the 70s and 80s, since a year in Vietnam plus 3 additional years intervened immediately after high school.So if production was cut why did cost of goods sold go up??
If production was cut why would you continue to order raw materials such that your raw materials inventory increased substantially??
Your statement: “For example, and let me break it down a bit, if you slow down production, doesn't demand go up?”, is a classic!!! Must not have required Econ 101 at law schools in the 60’s.
As to why a factory might hoard raw materials, read the statement put out by the CEO of Hornady as to why his company has such a large supply of raw materials hoarded as insurance against future shortages. I don't read minds, only published statements. Obviously, you are much more gifted.