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Question
BakeryCo is a medium-sized company that produces high-quality handmade bread for customers in their own country. Most of these customers are small retailers and cafes that have used BakeryCo for a number of years, normally placing orders by telephone and paying by cash on delivery. There is little visibility of future orders, which means that the lead time for delivery can be over two weeks, and this means that some orders are cancelled at short notice due to changes in customer demand. In addition, BakeryCo has seen the market for their products reduced by nearly 20% over the last year, as consumers react to the increasing rate of inflation and rising supply chain costs. Currently, BakeryCo relies on a small number of local suppliers for the materials (flour, salt, yeast, packaging etc) they require and struggles to maintain effective relationships due to their difficulty in managing the supply and demand of their own products.
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