6min chapter

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The Science of Decision Making: Turn Constraints Into Effectiveness & Productivity - Dr. Alan Barnard | Flow Research Collective Radio

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CHAPTER

How to Double Your Net Profit

We measured the level of shortages and surpluses at the retal level of the products that were selling. And in the same financial year, we were able to reduce total inventories by over a quarter of a billion dollars. We also got sales out by a few hundred million dollars by reducing surpluses which would then be sold as at a discount or occupy space that could have been used to solve others. When it comes to cash flow, for example, we worked with one of the largest book publishers in the world, and i had this very ambitious target of doubling their neck profit. They assumed that to double profit, they would have to publish more books and getinto more markets.

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