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SAP SCM: Applications and Modeling for Supply Chain Management (with BW Primer) by Wood, Daniel C.

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Preface

Consider boats. Let us imagine that we are a tropical tourist outfit and we have at our disposal a variety of small boats: a canoe, a speed motorboat, a double-sail schooner, and a catamaran. Imagine too that we have a body of boatmen and sailors who are trained and competent to maintain, navigate, sail, and otherwise put our small boats to good use and that they do in fact do just that on a daily basis, employing our small flotilla in some manner of productive economy, but economy that is limited to the scope and capabilities of small vessels, probably extending its reach no further than local seaways. Finally, imagine that we have recently paid for a rather nontrivial upgrade to the fleet, having just purchased several large yachts.

Obvious to everyone will be the fact that the yachts enable us to expand our economy as never before possible when we were limited to the small boat flotilla. The yachts have radar and satellite linkups to avoid bad weather, fuel stores to enable long journeys, and mass to handle tough waters. The yachts are big and can comfortably carry more people—scientists, merchants, diplomats, vacationers—all of whom may add value and opportunity to our oceangoing journeys. The yachts are not an upgrade of quality, such as a sturdier canoe, a speedier speedboat; rather, they are an upgrade of class. Most important, that the yachts constitute an upgrade in class, such that both a retraining of our entire staff and an expansion in the scope of our operations ...

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