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The Real Economic Order Quantity

Traditional Economic Order Quantity Open any Operations Management book or Operational Accounting book and you will see a figure, much like the one below (Fig. 1), used to describe what we have come to

How to Use Fact-Based Negotiation to Get the Best Price on Existing Components

Conducting fact-based negotiations is an effective cost reduction strategy when sourcing existing components. In this post, I will explain how to leverage a product cost management (PCM) platform to conduct fact-based negotiations and provide

The Network Effect and its Impact on Product Cost & Cycle Time – Part 3

As we’ve described in our first two installments of this series, in economics and business, the Network Effect is the impact that one user of a good or service has on the value of

How to Leverage aPriori to Improve Sourcing and Production Planning

We have talked extensively about how to use aPriori during your design process, but there are many other areas in your company where aPriori can be useful. In this post, I’ll talk about the

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