OIM 210 Lecture 4: Lecture 4 OIM
7 Feb 2017
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Inventory turns: the # of times inventory is sold or used during a given period (such as a year or a quarter). Higher -> + profit -> paying suppliers faster. 1 facility, 4 football fields, servicing equiv. of entire city of boston. 12 separate climate controlled rooms set for food, not people (bonus: fresher food) Less waste - saves at least 5% total revenue. Typical grocers: 1 in 7 truckloads wasted (-14%) v. ~1% at freshdirect. Buy from suppliers or prepare based on order, not walk in traffic speculation. Al systems and 7 miles of fiber optics monitor and guide. Inventory turns/ yr. 196 vs. 40 (less spoilage and fresher food) You can use technology to create these things because of data. Data is rare and can cost millions of dollars. Data has value, it is all about value because it helps you make decisions.
