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(b) After a dramatic corporate shake-up, the company's CEO, COO, and VP of Logistics have all been replaced with new executives. They do not have
(b) After a dramatic corporate shake-up, the company's CEO, COO, and VP of Logistics have all been replaced with new executives. They do not have much supply chain and operations experience. The new CEO proposes a business initiative in its supply chain units called "Delivery makes us standing out, The original inventory service level of 93%, which is consistent with the industry average practice, is replaced by a hefty service level of 99.9%. No one in the distribution and logistics divisions dares to say anything. Very quickly, the company suffers a heavy financial loss. Why? There are multiple reasons, just give ONE is good enough
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