3380 quiz 2
increased sales revenue
10-15 percent
improved on time delivery
10-50 percent
reduced safety stock
11-45 percent
reduced inventory
18 -46 percent
increased forecast accuracy
18-25 percent
increased productivity
30-45 percent
charge backs
A penalty or fee a customer charges for supplier non-compliance (e.g., damaged product; late delivery, improper packaging, errors in documentation).
scorecards .
A scorecard documents and communicates a supplier's performance on key measures a company uses to evaluate performance.
integrated business planning (IBP)
A supply chain practice that shares information across functions and supply chain partners to improve the accuracy and timeliness of forecasts. ,
strategic alliance percentage
Although they represent fewer than 5-10% of most companies' customer relationships, strategic alliances account for disproportionate sales and profits.
ABCM
An approach to the costing and monitoring of activities, which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on consumption estimates. 2
costs you are likely to incur when your product is out of stock.
Backorders. Backorders occur when 1) you don't have sufficient inventory to fill an order and 2) the customer decides to keep her business with you. As a rule, you ship what you have and fill the rest of the order once your inventory has been replenished. Because you have to fill the order twice, your costs go up and your profitability goes down. Further, you lose the ability to take advantage of scale economies in the delivery process as you pick, pack, and ship two smaller quantities created by splitting the original order. If you have to expedite the second part of the order, per unit costs can go up dramatically. Lost Sales. Lost sales occur when the customer takes her business elsewhere. Consider the math. If an order was for 500 parts with a sales price of $50 each and a profit margin of 15%, the customer's decision to defect will cost you $3,750 (500 units x $50/unit x 15% profit margin). Lost sales are more expensive than the margin you lose. You have given your customer a reason to test a rival's capabilities. Your customer might not come back. Lost Customers. If your customer decides to take her future business elsewhere, what are your costs? Few companies have done the homework necessary to calculate the true value of a loyal customer. Despite its importance, the concept of lifetime stream of revenues/profits is seldom used to design order fulfillment systems.
Postpone your purchase
Because you must return later, your costs go up—both in terms of time and transportation
receive product from source or make
Before you can fill an order, you must receive the product from an internal (factory) or external (supplier) source. When product arrives at your DC, you place it in inventory or, if it is part of an ATP order, you combine it with on-hand inventory to complete the order.
biggest challenges to effective order management
Complexity; that is, there are a lot of steps in the process—and they take place at different times and places. Besides, you'll probably have to manage orders for a lot of different SKUs. Ownership; that is, many people—across different functions and companies—touch the process, but no one owns the entire order-management process. Uncertainty; that is, you are making decisions today about demand that may or may not arise in the future.
The Federal Trade Commission (FTC) labeled stockout occurrences of advertised products an "unfair or deceptive" practice.3 Beyond being peeved, why should you care? Consider two facts:
Customers Defect. When your product is not on the shelf, what are your customers' options? Customers can buy a substitute or leave empty handed—waiting or switching to another store? The failure to assure availability invites the customer to switch brands or to shop elsewhere. Online, it only takes a few clicks to find an alternative supplier. Although we have used a B2C example, stockouts invite defection in B2B settings as well. Service Failures are Costly. Research has estimated that out-of-stock occurrences reduce overall sales by four percent, costing worldwide retailers about $435 billion in 2010.4 We dig more deeply into the cost of stockouts and other service failures later in this chapter.
As you develop a tailored logistics strategy, you need to keep one point in mind: Establishing the wrong relationships with the right customers diminishes return on investment (i.e., wasted investment or lost opportunity). Defining appropriate relationship intensity is the key to fulfilling current customer needs while maximizing long-term value co-creation. The following three hints can help you find the balance between short- and long-term needs:
Grow with Loyal Customers. Growing the top line profitably can be done in two ways: acquire new customers or retain and increase sales to existing customers. Research suggests that going out and convincing new companies to become customers costs five times more than growing sales with satisfied and loyal existing customers. 7 Besides, if your service is not good enough to retain customers, it probably is not good enough to attract new customers. Companies that offer inferior customer service tend to replace frustrated customers with ignorant ones. 8 Measure Lifetime Customer Value. What is a profitable customer worth over a lifetime? Few managers know. Max & Erma's, an Ohio-based restaurant, became concerned that its employees viewed customers as a $20 meal or a $5 tip and decided to run the numbers. Decisions makers asked, How often did Max & Erma's best customers visit? How large was the average ticket? How many new, potential customers did these loyal customers introduce to the restaurant? The leadership team learned that its best customers were worth $25,000 profit over a lifetime (that's a lot of burgers). 9 Knowing what a loyal customer is worth can help you rethink what you are willing to do to create the loyalty needed to keep customers coming back. Remember Empathy. An old Swiss adage says, "You cannot slice a piece of cheese so thinly that it only has one side." Every buyer/supplier interaction is seen from two perspectives: yours and the customer's. Decisions you make today influence tomorrow's relationships. For example, some years ago, the chef of a small restaurant placed an urgent order with an Italian frozen foods distributor—for two boxes of peas! Despite promoting its ability to accommodate tough requests on short notice, the distributor refused the order. Shortly thereafter, the chef became the food and beverage manager of Italy's leading hotel chain. He didn't, however, forget his previous experience. The hotel refused to buy anything from the distributor. 10
three key points about forecasts
History. Forecasts are based on two things. First, if you are like most people, you base your ideas (forecasts) about the future on what happened in the past. Second, your knowledge of how a system works helps you interpret data and improve your forecasts. Meteorologists study the intricacies of the atmosphere so they can help us plan next week's activities. Logisticians map out order-fulfillment processes so they can deliver on time and to promise. Accuracy. If you've ever checked a weather forecast, you've learned that most forecasts are wrong. If the meteorologist's forecast for tomorrow's temperature is 75° F (23° C), you can bet that you don't need to wear a winter coat, but you wouldn't be surprised if the actual temperature were a few degrees warmer or cooler. If you are looking at the forecast for a week from today, you may not be confident you won't need an umbrella. Confidence. You know that your forecasts are likely wrong—especially your long-range forecasts. A lot can happen in an open marketplace to change demand. Even so, if you do your homework and use good data, making decisions based on a forecast is better than being blind! For example, a few years back, managers at Southwest Airlines forecast that jet fuel prices would increase dramatically. They bought futures contracts to lock in low prices. Rivals weren't so forward looking. As a result, when prices went up, other airlines paid an average of $1.76 per gallon. Southwest was paying only 95 cents per gallon. By not flying blind, Southwest achieved industry-leading profits. 1
2 questions for weighted average
How many periods of data should you use? How should you weight the data?
Point of Sales (POS) Information
Information collected at the point of sale—typically as a product barcode is scanned at a check out register. POS information helps you track sales and inventory levels. ,
Customer alliances build on the following:
Long-term focus. Senior leadership involvement: from relationship development to problem solving. Cross-organizational teams are widely employed. Shared resources, including engineering talent, training, financing, and operating capacity. Shared risks and rewards. Open communication and linked information systems.
costs associated with stockouts
Lost Revenues: How much could you have sold if you had the product in stock? Goodwill and Reputation: How will your customers view you—and your rivals? Follow-on Business: Will your customers abandon you for a more reliable "partner"?
Receive and Verify Product by Customer
Once the shipment is delivered, the customer's receiving team inspects the order—checking for quality and quantity. If a problem with the order or the documentation is found, the customer may withhold payment until you fix the problem.
costs associated with overstock
Opportunity Costs: What could you have sold if money wasn't tied up in product that isn't selling? Holding Costs: How much money does inventory, and a place to store it, cost? Markdown and Disposal Costs: How much will it cost to either liquidate or dispose of old inventory?
"Once you know your best customers are not profitable, what should you do?" You have three viable options
Option 1: Collaborate to reduce costs of service. Activity-based costing reveals which behaviors/decisions are driving costs. With this insight, you can begin a fact-based dialogue with customers about how you can work together to reduce costs. You will find that customers have no idea 1) how their internal policies/processes affect you or 2) what their requests really cost. Once you show them accurate numbers, most customers will be interested in working with you to bring costs down. Option 2: Raise prices. A second advantage of the fact-based dialogue enabled by ABCM is that you can show the customer that she is truly getting value for her money. You will almost always be able to negotiate a price that yields a reasonable profit if your service is best in class and offered at competitive prices. Option 3: Fire the Customer. If a customer is not willing to consider options one and two, you may need to stop doing business with that customer. Accurate costing enables you to make this tough decision.
plan and build loads next
Plan and Build Loads Next, you build a transportation plan, which answers three questions: 1) What are we going to ship in each load? 2) Who is going to move the order? and 3) What route will be used? Using a transportation management system (TMS) to achieve more optimal loads and transportation plans makes your life easier.
Collaborative Planning, Forecasting, and Replenishment (CPFR)
Planning, Forecasting, and Replenishment (CPFR) A formal process of aligning demand and supply across buyer/supplier relationships to help trade partners work effectively together to build a single, agreed-upon forecast and operating plan. . By linking S&OP and CPFR, it is possible to synchronize or
Sometimes, you simply can't increase manufacturing capacity, speed up logistics, or solve a supply shortage in your efforts to meet customer needs. Your only real option is to work with marketing to persuade customers to shift their demand. Price and lead time are your two levers of influence. Consider the following:
Price. When was the last time you BOOKED A FLIGHT online? Did you notice how big the price differences were for different flights to your city of choice? Popular flights cost more. Less convenient flights are discounted to entice you to shift plans and fill a seat that otherwise would go empty. Let's look at another example. Dell has long used price to help match supply to demand. For example, if Dell's inventory of Seagate 1 terabyte hard drives is running low, but it has a surplus of Toshiba 1 terabyte hard drives, managers can lower the price on the Toshiba drives. You choose the Toshiba—even though it was your second choice. You never knew Dell was low on Seagate drives. All you care about is that you got a great price on a great hard drive. Lead Time. Automakers use time—aka, convenience—to help align demand with supply. You can buy the car that is on the lot and drive it home today. Or, you can wait several weeks to get the car with the exact options you want. Even better, you're odds of negotiating a lower price are higher for the car that is already on the lot.
Process Inquiry and Quote
Process Inquiry and Quote. Your customer reaches out to you—and other suppliers—for information on product specifications, pricing, and availability. Naturally, you want to win the order. So, you respond quickly with accurate, up-to-date information
Translated into operational targets, your logistics system needs to provide the following
Product Availability Timely Delivery Transparency Protection Against Disruption Operational Efficiency
S&OP planning process, which relies on five monthly review meetings that take place in the same sequence each month.
Product Management Review: In the product review, you talk about products launches, assortment plans, and discontinuances. Your goal is to ensure a healthy innovation pipeline so that you have the right mix of products to meet customer needs profitably. Your product plan will influence both demand and supply planning. Demand Review: During the demand review, you determine how and how much product you are going to sell. This unbiased demand plan defines how much product you will request from the end-to-end supply chain over a rolling 18-to-24-month horizon. It also clarifies assumptions, risks, and opportunities. Supply Review: During the supply review, you discuss how you will ensure supply; i.e., prevent stockouts! You examine manufacturing capacity, supply chain inventory, transportation, and logistics/DC capacity—and you develop contingency plans to address demand risks and opportunities identified by the demand review. Integrated Reconciliation: Because each group above has different ideas about how the future will turn out (and thus different forecasts), you need to get together to identify and resolve key imbalances identified in the product, demand, and supply reviews. You also build your integrated FINANCIAL PLAN including revenue, margin and other P&L, balance sheet, and cash flow effects. Management Business Review: Despite the reconciliation process, some imbalances are hard to resolve at the functional level. Marketing might demand more production. Supply might argue that materials are not available or that marketing really "won't sell that much." You take these "problems" to senior management in the business review. During this review, you align plans and decisions with overall business goals.
qualitative
Qualitative approaches rely on experts' opinions. Your task is to identify the right "key" informants and to ask them the right questions. Sometimes, the experts really do know what they are talking about and can tell you with great accuracy how customers will receive a new product or how much of a specific product should be produced and shipped to meet demand during a special promotion. When domain knowledge is critical and pertinent data is scarce, qualitative methods may be your best bet.
quantitative
Quantitative approaches are data—rather than experience—driven. As a logistician, you will come across two approaches to quantitative modeling: correlation and time series models. You want to use correlational models (like regression) when you can identify variables that predict the behavior (e.g., demand for overnight shipping) you are trying to understand. Of course, you need to have accurate, timely data for your predictive variables. As the script from a recent IBM commercial shows, the "Big-Data" movement (aka, predictive analytics) has made correlational analysis an almost indispensable tool in your hands:
Activity-based costing traces costs backward from the end cost object (in our case, a specific customer) to the resources needed to meet the customer's service needs. To trace costs effectively, you need to ask and answer four questions.
Question 1: What are your cost objects? In a customer-segmentation scenario, you want to begin your analysis with your most resource-intensive "A" customers. Question 2: What processes does each customer initiate? To meet customer needs, you must manage a variety of processes from new product development to reverse logistics. We are currently interested in logistics order fulfillment. Question 3: What activities comprise each process? Logistics service, like most value-added processes, is comprised of a variety of activities. Your task is to define core activity centers and identify the specific activities that are performed in them. For example, what are the specific steps involved in preparing an order for shipment? Order preparation could include picking, palletizing, shrink wrapping, labeling, staging, and loading. You can evaluate the costs associated with each of these activities using time and motion studies. Because this analysis is costly, you need to define how much accuracy is really needed to design a winning fulfillment strategy. Question 4: What resources are used by each activity? Value-added activities consume five types of resources: labor, plant and equipment, materials, capital, and utilities. Your challenge is to tie the amount of each resource consumed to a specific order. Barcodes, RFID, and other sensor technology can help you track orders as they progress through a process, enabling you to link resources to specific orders.
receive enter validate order
Receive, Enter, and Validate Order. Once the customer decides to buy from you, she transmits an order, which you receive and process. Some companies still do this manually (ugh), but many orders are placed directly via the Internet, enabling you to provide customers real-time order visibility
route shipments
Route Shipments. Now, you're ready you assign a "load" to a specific route. Your TMS will help you do this.
FACINGS
SPACE ALLOTED TO A PRODUCT ON THE SHELF
integrated business plann9ing is these two combined
Sales and Operations Planning (S&OP) and Collaborative Planning, Forecasting, and Replenishment (CPFR).
weighted moving average
Sometimes, you've tracked a demand pattern long enough to know that more recent data better reflects future demand than older data. When this is the case, you want to place extra weight on the new data.
Second, customers care about three aspects of delivery: speed, consistency, and agility
Speed. Speed refers to the length of the order cycle. Fast cycles make a customer's decision making easier (think less inventory; better forecasting). But, faster delivery can cost more. This tradeoff is why you might have chosen 5-day delivery from Amazon.com. Offering speed customers don't value is the dark side of speed. 5 Consistency. Consistency means dependability. To achieve it, you need to remove process variability. Because consistency allows you to plan with confidence, you may value it more than speed. For Toyota, the ability to count on on-time delivery is what matters! Agility. Being agile means you adapt to the unexpected. If your customer requests expedited delivery to support a surprisingly successful promotion, can you deliver quickly enough to build the sales momentum? If a natural disaster disrupts supply, can you still meet demand?
decision rules for exponential shooting
Stable (i.e., you want to smooth out noise). You believe demand shifts are temporary and non-representative. You therefore place minimal weight on your previous period's actual demand, shifting more weight to your previous forecast. Responsive (i.e., you want to catch new trends quickly). You think unexpected changes in demand reflect future trends. Thus, you weight the previous period's actual demand more, placing less weight on the previous period's forecast.
Applying Pareto's law is typically a two-step process.
Step 1: Classify companies by sales.Table 2-2 illustrates the classification process. Panel A lists a pharmaceutical supplier's customers alphabetically. Panel B sorts the customers on last year's sales. Three customers account for 56% of sales. The next eight largest customers represent 34% of sales. The remaining 42 customers drive only 10% of sales. As the example shows, this step is pretty easy. Step 2: Modify classifications based on strategic issues. Sales figures only provide a snapshot regarding relationship importance and potential. The story is incomplete. You therefore need to consider other issues that might make a customer more or less important—both now and in the future. For example: A customer may possess unique skills that will drive future market advantage. A customer may control scarce resources (a new patent) that will spur sales growth. Intensive collaboration may uniquely improve logistics customer service. Such "qualitative" factors will help you define exactly where the lines are drawn between different customer segments. Step 2 requires experience, judgement, and good scanning skills to identify and accurately assess the right qualitative issues.
To calculate the true cost of a stockout, follow this three-step process.
Step 1: Evaluate Customer Response. How do your customers really respond to stockouts? As Table 2-4 illustrates, some customers substitute, others delay, and some switch—for one order or for life! If you have tracked customer behavior, you may be able to accurately profile customer responses to past stockouts and use this data to forecast future behavior. Otherwise, you need to start from scratch and build an accurate behavioral profile. For our current example, let's say 50% back order, 30% make a one-time buy elsewhere, and 20% switch permanently—removing you from the approved supplier list. Step 2: Estimate Consequence Costs. Calculate the costs incurred for each customer choice using customer and operating data. For instance, imagine the added processing, labor, packing, and transport costs driven by a backorder average $100 per backorder. Using the lost sales costs from above, you assign a cost of $3,750 to the average lost sale (i.e., 500 units x $50/unit x 15% profit margin). Finally, let's assume that you have done the analysis to estimate the lifetime stream of profits attributable to a customer (let's say $50,000). Step 3: Calculate the Expected Stockout Cost. Building on Steps 1 and 2, you calculate the expected cost of a stockout as follows:
to make CPFR successful, you engage in the following four collaborative activities.
Strategy & Planning: You hold a kick-off meeting to establish ground rules for the relationship and agree to a joint business plan. During this process, you answer the following questions: What products will be sold? Where will they be sold? What strategic initiatives will be pursued? You review and update this operating framework periodically. Demand & Supply Management: Via a regular "cadence" call, you discuss expected demand, share forecasts, and talk about upcoming promotions. Promotions and other "special events" can dramatically change future sales from their past history. You do this on a rolling-horizon basis. Discussing plans that are far out on your planning horizon gives you a heads up regarding capacity and materials needs. As you draw closer to a specific sales period, you refine your forecasts and operating plans. Execution: During execution, you place orders, prepare and deliver shipments, receive and stock products on retail shelves, record sales transactions and make payments. Execution is the fulfillment and delivery cycle discussed earlier in this chapter. Analysis: To help you improve performance and build stronger relationships, you perform an after-action report to answer these questions: What worked? What didn't? Why? What do we need to do differently?
starts with customer ends with customer
The customer recognizes a need, prepares an order, and transmits it to the supplier. The supplier processes, prepares, and ships the order. The customer then receives, accepts, and pays for the product.
transship
The logistics practice of transferring product from one warehouse to another or from mode to mode of transportation to another in order to fill an order.
order fulfillment
The logistics process (sequence of activities) responsible for delivering customer orders in a way that meets their needs.
&OP's is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to the following:
The nature of the business environment. Each group's role in supporting the corporate strategy. How to work together to synchronize the value-added activities of the firm. A single forecast; i.e., "one-forecast" planning.
Be so ticked off that you post on social media and tell everyone you know about your "horror" story.
The retailer loses your current sale and future sales. Damage to the brand among your peer group (which may be very large in today's socially networked world) may reduce sales. The company that makes the out-of-stock product may lose future sales if other retailers carry a smaller portfolio of its product line.
pick product
Using delivery promises and your transportation plan, you develop a picking schedule so that the right product is picked (i.e., gathered into a load) in an accurate, efficient and timely manner. Don't forget, picking errors are costly. Nobody likes to open a package only to find out the wrong product is inside.
to get exact right inventory ask these 3 questions?
What does an effective and responsive order fulfillment system look like? How can you effectively coordinate order management across intra- and inter-firm decision makers? How can you improve the quality of your forecasts? Don't forget, your forecast is a vital input into your order management system.
Reserve Inventory and Determine Delivery Date
When you receive an order, you need to promise a delivery date (that is, if the customer didn't already set a required delivery date). If you have product on hand at your local DC (known as available to deliver or ATD), you reserve it for the customer and use your knowledge of picking, packing, and shipping times to set the delivery date. What do you do if you don't have product? Your options are to... Ship from a more-distant DC, incurring higher shipping costs, but getting the product on its way to the customer. Wait for the product to be delivered from a supplier or from one of your own manufacturing operations and then ship the order. Promising a delivery date based on when you will receive product from an upstream source is known as available to promise (ATP). Fill a partial order with existing inventory. This option increases handling costs for both you and your customer; however, if it prevents a stockout and either lost sales or a production shutdown, it may be worth it. DROP SHIPdirectly from the factory (yours or your supplier's). This option increases coordination and shipping costs, but it may be worth it. You need to compare cost and lead time tradeoffs to determine the best option for a specific order. You may be willing to sacrifice profitability to keep a key customer happy.
exponential smoothing
When your demand pattern includes occasional shifts, you need to decide whether those shifts are noise (i.e., not representative of real trends) or early indications of a change in the market (i.e., reflective of an emerging trend). In other words, you are back to the issue of balancing stability and responsiveness. Exponential smoothing helps you do this by weighting your last period's demand with your last period's forecast
pack product
You are now ready to pack the order for shipping. You want to PROTECT the product to avoid damage in transit and to prepare it for economical loading. For instance, packing for stackability can improve cube and truckload efficiencies.
Be so ticked off that you swear you will never shop at that store again.
You lose out on future deals available only at that retailer. The retailer loses the current sale as well as all of the purchases you would have made in the future. The company that makes the out-of-stock product may lose future sales if other retailers carry a smaller portfolio of its product line.
Buy a substitute product at the same retailer.
You may pay more for the substitute product. You settle for your second choice. If the substitute product has a lower margin, the retailer's margins are negatively impacted. The maker of the out-of-stock product loses a sale—and the opportunity to impress you.
Load Product and Generate Shipping Documents
Your final physical activity is to load the vehicle. You want to maximize vehicle capacity utilization (weighing or cubing out) and plan for unloading, especially if you are shipping multiple LTL orders. Product should be loaded in reverse order of the delivery schedule. Once loaded, you can generate the documents (e.g., commercial invoice, packing slip, bills of lading, and manifest) needed to legally turn the order over to the carrier.
ship product
Your final physical activity is to load the vehicle. You want to maximize vehicle capacity utilization (weighing or cubing out) and plan for unloading, especially if you are shipping multiple LTL orders. Product should be loaded in reverse order of the delivery schedule. Once loaded, you can generate the documents (e.g., commercial invoice, packing slip, bills of lading, and manifest) needed to legally turn the order over to the carrier.
select carriers and rate shipments
Your next task is to select a specific carrier to move and deliver an order. Your goal is to pick the right carrier (from FedEx for overnight to a truckload (TL) carrier for larger, less-time-sensitive shipments) to meet delivery promises at the lowest possible cost.
Go to a different store to buy the product.
Your search and acquisition costs go up. The retailer loses a sale (and maybe the value of other products you might have purchased if you had stayed in the store to shop). The company that makes the out-of-stock product retains the sale—but from another partner. This may affect margins
contingency planning
anticipating disruptive events and making sure nothing in factory or logistics is affected by it
strategic alliance
customer expectation is the product should always be perfect at low cost
product ab\vailablity
data management and inventory management
Activity-based cost management (ABCM)
enables you to drill down into the real costs of logistics customer service.
integrated business planning
getting everyone to work together
pipeline inventory
inventory in transit
By linking S&OP and CPFR
it is possible to synchronize order management across an entire supply chain. Let's talk about these two practices, beginning with S&OP.1
predictive analytics
looking at patterns from largew set of data to predict
transactional relationship
low costs adequatre service
service as measued by customer (sambc)
percent of customers where your firm is meeting expected service target
cadence calls
periodic call for decsion making and to share information
Order transparency improves
planning, execution, and evaluation.
order management
process you take to take process and fulfill customer orders
order management system
processes orders using technology (overstock and stockout)
2 different approaches to forecasting
qualitative forecasts and quantitiave
time and motion studies
question 3 techniuque that analyzes processes to document exasctly how they work and identify oppurtunities to improve efficiency
ordinary least squares regression
rdinary least squares (OLS) regression. OLS determines the straight line that minimizes the sum of squared differences between actual values and forecasted values. The equation for this line is
moving average
simplest time-series technique. You simply take the average of several recent periods demand. How many periods of historical demand should you use? That depends on how sensitive to new trends you want your forecast to be. If your demand pattern contains occasional noise (i.e., spikes) that is not representative of real trends, you want a stable forecast (i.e., you want to ignore the noise). You increase stability by including more periods of data. If you want a forecast to pick up shifts in demand quickly, use fewer periods of data. Let's compare two-period and five-period moving averages.
order fulfillment cycle
time it takes when a customer places order to recieve it
sales and operation planning
using customer facing and supplier facing to build a single forecast
stockout
when stock is too low for demand
service recovery paradox
when suppliers are mess up and but gain backcustomers trust even more once they serve them