Post-Flood Inventory at Hannah’s Shop
B: Rapidly replenish sold inventory
D: Keep inventory nearby at local storage facilities
A: Ensure adequate quantities of inventory are on hand to maximize sales (reduce "out of stock SKUs") while reducing expenses
| A-B: | Assumption(s) | Injection(s) |
| (1) Sales quantities are unpredictable. (2) Out of stock SKUs are lost sales. | (1) Create a more reliable process or program that attempts to determine sales quantities based on trends and recent sales. (2) Discount may be offered to consumer if they allow delayed shipment (costly) |
C: Reduce facility costs (bottom line expense)
D': Move inventory to the central distribution center.
In order to Ensure adequate quantities of inventory are on hand to maximize sales (reduce "out of stock SKUs") while reducing expenses I must Rapidly replenish sold inventory and in order to Rapidly replenish sold inventory I must Keep inventory nearby at local storage facilities. But, in order to Ensure adequate quantities of inventory are on hand to maximize sales (reduce "out of stock SKUs") while reducing expenses I must also Reduce facility costs (bottom line expense) and in order to Reduce facility costs (bottom line expense) I must Move inventory to the central distribution center.. I can't both Keep inventory nearby at local storage facilities and Move inventory to the central distribution center..
| Relation | Assumption(s) | Injection(s) |
| D-D' | inventory can only be stored in one place. | Always true |
| B-D | (3) We cannot effectively forecast customer demand. (4) Distribution Center replenishment time is long due to shipping of only batch quantities. | (3) Create a more reliable process or program that attempts to determine sales quantities based on trends and recent sales. (4) Ask if the Distribution Center can make an exception and ship small numbers of items |
| C-D' | (6) There are no nearby storage facilities available for a reasonable cost. | (6) All options have been looked at and all in close proximity are expensive. |
| A-B | (1) Sales quantities are unpredictable. (2) Out of stock SKUs are lost sales. | (1) Create a more reliable process or program that attempts to determine sales quantities based on trends and recent sales. (2) Discount may be offered to consumer if they allow delayed shipment (costly) |
| A-C | (5) Added expenses will negatively affect the bottom line. | (5) Always true |