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In lugnet.build.microscale, Jonathan Lopes wrote:
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In lugnet.build.microscale, Tim David wrote:
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.
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I’m 80% sure (guesswise) that the reason is “we don’t have enough SKUs”...
This seems to me a sign of internal breakage, LEGO needs to fix their
systems so they can have more SKUs without it costing them a lot more.
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How much does it cost to have some more numbers?!
Tim
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I work for a publisher here in NYC and one of the requirments from our Editor
in Chief is ‘keeping the sku count low’ (number of different books we
produce, not quantities of each title that we print). I’m not 100% sure this
is the reasoning for keeping the sku count low but, an operating/overhead
cost is worked into the P&L for each book we develop and produce. It is
automatically in there. There is no way to get it out. It includes salaries,
rent, employee benefits, kitchen coffee & milk, etc. If the sku count goes up
really high, operating costs for the year automatically go up with them. So,
keeping a cap on the sku count, keeps operating costs down and within a
predetermined operating budget.
I think this might be typical for all/most businesses.
Jonathan
don’t know where to set FUT.
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Having a manufacturing background, and having worked a little ops management..
the more SKU’s you have, the more associated costs you’re going to have (for
example--just boxes alone: -more boxes to design and print--adds money to
product, -more time required to print more boxes, as you have to figure in
setup time for each box run (more cost), -area needed to store those boxes
(still more cost, and can you find the area to store?),
When planning resource allocations, more SKU’s means more variables in the mix
that have to be managed.
When the product is packaged at the warehouse, you then have to store the items
separately as well--again, more cost, and can you find the space?) Then you
have shipping and storage space at retailers’ locations. (Granted, maybe that
part is not a big issue right now for the LEGO factory, but all the others
apply.
There are a lot of other factors, but I wanted to look at a small part, just to
see what that does to costs.
Scott
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