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Once a competitor makes an attempt to enhance service by maintaining raw supplies, work-in-process or completed items obtainable, or by making the process quicker and more environment friendly, it puts stress on opponents to satisfy this new normal. Outside Processing ? Some companies lament the amount of cash spent on exterior processing charges. This is not a problem unless they’re considerably greater than comparable in-house prices.
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Service Objectives ? The required response time and reliability of service to customers has a big impact on INVENTORY costs. For instance, if industry standards enable making to customer specifications from scratch, there may be much less need to take care of completed items inventories. If customers or distributors carry inventory, that reduces strain upon the supplier to keep up inventories and scale back them rapidly.
Front End -Forecasting -Production Planning -Master Production …