From the course: Operations Management Foundations
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Inventory consumption rates
From the course: Operations Management Foundations
Inventory consumption rates
- Shampoo. It's funny how we use it, right? When you get a new bottle, the next shower's like having a shampoo party. You use lots of shampoo and build up a nice, thick lather of bubbles. The only problem is that one week later, you have a bottle with about that much left in it. But somehow, you're able to make that little bit of shampoo last for months if you need to. I like to call that the shampoo principle. The more you have, the more you use. Our consumption rates of inventory change based on the amount of inventory we have, and it's a continuous cycle of use and misuse that we can see as we get new bottles of shampoo. When I buy a new bottle of shampoo and put it in the shower to accompany my almost-finished bottle, next time I'm in the shower, what happens? Somewhere inside my brain, I'm like, "We can't have two bottles of shampoo in here." And no matter what, it has now become my mission to finish off that old…
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