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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 468 |
Essay's paper body
These discounted have shown to be very costly as they lead to this phenomena called forward buying with much more sales at a moment and less later on. Customers take the sale opportunity to buy greater quantities than their actual consumption and stock those quantities for the future.
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This distorted demand data/information can result in tremendous inefficiencies.
Due to high demand uncertainties, inventory tends to be stocked at every stage of the supply chain process. The Director of logistics eve mentioned that : “The way we operate now it’s nearly impossible to anticipate demand swings, so we end up having to hold a lot of inventory and do a lot of scrambling in our manufacturing and distributor operations to meet distributor demand...
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