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Intermodal Trains: a few questions
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[quote user="dldance"][quote user="gabe"][quote user="dldance"][quote user="gabe"] <p>So 24 hours matter, when it takes over three weeks to ship? I don't doubt you, but it just seems counter-intuitive?</p><p>Gabe</p><p>[/quote]</p><p>So, just one of his customers generates about $700,000 per hour in revenue. 24 hours = $1.6 million. Yes - it matters.</p><p>dd</p><p>[/quote]</p><p>I guess what I do not understand is that the customer operates on a zero-based inventory?</p><p>Once again, I am sure you are right, and am not arguing with you. I am just having trouble with the concept.</p><p>Gabe</p><p>[/quote]</p><p>One of the most famous exports from Japan is the "Toyota Production System" also known as "Lean Manufacturing." The goal of this system is Zero Inventory. Now back to my client's customer - that 2,000 gallon ISO chemical represents about $6 million in inventory. No way is that customer going to have 2 or 3 extras ISOs in line for processing. BTW my client's average trans-Pacific transit time is less than 10 days. Ships move at different speeds. He pays for fast ships.</p><p>dd</p><p> </p><p>[/quote]</p><p>No slow boat for this one then. The money is there to pay for fast ships.</p><p>I was thinking about those 20 dollar toasters that arrive to the walmart slightly abused and banged up from thier trip.</p>
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