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As a result of inaccurate forecasting, Acme Cellular’s worldwide market share of cellular phone sales was declining. Our product portfolio included five different models of cellular phones (AC-1 through AC-5). Each model is available in 6 different configurations for various languages and service providers. We also have three suppliers for Flash memory devices: Samsung, Toshiba, and Micron. Inventory control, for both unprogrammed (blank) and pre-programmed Flash memories, is critical, as more than 90 different part numbers must be generated and managed. Compounding these forecasting problems were shipping delays due to last- minute code changes.
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