Another area that gets tricky is customer support vs production commitments.
There is a lot of push to absolutely minimize inventory, and just stock the absolute minimum of parts to build something. At the same time, customers that have purchased products, especially for production machinery, want very fast repairs. A down system could stop their entire production line, so there is pressure to complete a repair in 2 - 4 hours, with big penalties for each hour after.
This makes it very interesting for the "existing down customer" need vs "production commitment to delivery new equipment" when a part is sitting in inventory, now double committed, or might even be on an existing, built machine, nearly ready to ship out the door.
What is the value of a part that can be purchased for $20 each, minimum purchase quantity 100 each only, you have only 1 in stock, but need 3 ?
I have no idea, but it feels like $ 2000 / 3 = nearly $800 each.
Harry
EDITED: 15 Apr 2016 14:49 by HARRYN