the customer and
the degree of commonality in the product structure.
First, the inventories induced by order B might be
smaller if information on preferences of the customer
could be collected earlier. For example, suppose
that the requirement for 20 MPS units in order B is
cancelled in January. In this case, only the inventories
of the component rise. Moreover, since the
order for 30 components due in June is not placed
yet, the company can purchase only 10 components,
yielding a stock of 20 only from February to
May. Second, inventories can be reabsorbed or
turned into buffers at lower levels if later on