Distribution
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Theory Of Constraints
Cross Docking: Don’t try this at home!
The practice of cross docking is another error that follows logically from a mistaken assumption. I have already shown why MIN/MAX and EOQ are wrong. The basic assumption is that “reducing logistics costs increases profits”, and the problem is precisely how costs are calculated. I won’t go into that now; another time I will show how cost accounting gives the wrong information…
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