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Review and
Discussion
Christian Hofer, Ph.D.
h
K
SS
G(Q,R)
N(R)
Scenario 3: Increased
Variability
Consumer demand
uncertainty has doubled
during these times of
economic stagnation/
recession.
Christian Hofer, Ph.D.
Sam M. Walton College of Business
Scenario 4: Increased
Backorder Cost
An aggressive competitor has
entered the market. As a result,
backorders have to be
processed more quickly to avoid
losing customers, increasing
backorder costs by 50%.
Christian Hofer, Ph.D.
Sam M. Walton College of Business
What can we do to
improve
logistics performance?
Cost reduction
Managing uncertainty
will discuss soon
G(Q,R)
K
h
SS
p
Christian Hofer, Ph.D.
Sam M. Walton College of Business
N(R)