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This has intensified the need to reduce our costs and improve customer satisfaction in order to compete and maintain a competitive advantage in a very price sensitive market.
Analyzing our current situation, we can see that our profit margins have been declining in the past three years due to company wide operational inefficiency. Our distribution costs have been increasing because of the high inventories we carry in the warehouses; we are constantly having oversupply or shortages in our raw materials making it difficult to negotiate lower prices with suppliers; and we have been scheduling shorter production runs, thus incurring in high set up costs...
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