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Non-Tech : Simula (SMU)

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To: wally who wrote (678)10/17/1997 1:21:00 PM
From: Jaime H. Ayalde   of 1671
 
Well put Nobie,

I would like to add that, although needed, back log (orders) alone will not feed to the bottom line. I have noticed that maintaining a steady supply of materials has brought SMU added expense Quarter after Quarter. For example last year they could not get enough "aluminum". Logistics and the added cast of trustworthy suppliers needs to be considered. I think of the Billion orders in Backlog Apple has had has not helped the bottom line but ultimately hurt. The demand for the PPC350(Macintosh) has made Apple stop accepting orders. Demand alone will not do it for a company if it does not have its supplying channels in place and able to sustain the higher production runs. The cost associated with delivering will offset the the higher volume run.
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