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Theory Of Constraints: The Key To Better Decisions with Dr. Alan Barnard

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How to Double Net Profit in a Financial Year

In the same financial year, we were able to reduce total inventories by over a quarter of a billion dollars and got sales up by a few hundred million dollars. So not trying to solve the problem with more sophisticated or advanced forecast, but rather by getting the non-signal of what's actually selling faster back to everybody. When it comes to cash flow, for example, we worked with one of the largest book publishers in the world. They assumed that to double net profit, they would have to publish more books and get into more markets. People kind of ignore often leverage.

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