New article published on ChannelsOnline!
Imagine four business professionals: John, Karl, Lisa and Helen. John sells the amazing latest technology product X, through his knowledgeable analytic team, he receives a demand forecast for the upcoming month of 15 units. John knows that this product enjoyed quite a success lately so, to be safe he orders 20 units, 15 as forecasted and 5 as safety stock. Lisa, who works in the distribution center of product X, looks at the orders and sees that John wants 20. Now, Lisa, who is very committed to achieve great results, sends an order for 30 units to the manufacturer, being able to avail quantity discount for bulk orders. At this point, we find Karl and Helen who are responsible for the manufacturing planning of product X. They discuss about what to do and decide to order materials for producing 60 units, in this way they can bring down manufacturing and order cost, as well as aim for a one time delivery.
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