Re:Amazon Blocks Sellers from Using FedEx Ground for Prime S...
by kube-system on Monday December 16, 2019 @05:24PM
(#21808064)
The closer companies squeeze just-in-time logistics to the limit, the more they are increasingly reliant on a flawless demand model.
It's the biggest reason I've stopped shopping at Walmart in recent years. I can't rely on being able to go to the store and expect that everything is in stock.
Let's dust off my old binomial probability skills:
Assume Walmart's just-in-time demand model is accurate to the extent that 1% of items in the store were misjudged and are out of stock. Let's say I go in for a shopping trip of 30 items. I'll have a 26% chance of being disappointed that one of the items I needed was out of stock, and I'll have to go somewhere else now.
Those are completely made up numbers, but it demonstrates how a seemingly small error can be a big inconvenience for someone.
It's the biggest reason I've stopped shopping at Walmart in recent years. I can't rely on being able to go to the store and expect that everything is in stock.
Let's dust off my old binomial probability skills:
Assume Walmart's just-in-time demand model is accurate to the extent that 1% of items in the store were misjudged and are out of stock. Let's say I go in for a shopping trip of 30 items. I'll have a 26% chance of being disappointed that one of the items I needed was out of stock, and I'll have to go somewhere else now.
Those are completely made up numbers, but it demonstrates how a seemingly small error can be a big inconvenience for someone.