Balance sheet of company Ci in million CHF

The two products Pi and P3 are subsumed under product group I due to their joint characteristic of regular demand. P2 (seasonal demand) and P4 (irregular demand) form product groups n and m respectively. 

The reduction of the inventory of finished product entails a permanent reduction in inventory carrying costs (insurance premiums, wastage, aging amongst others). Previous experience at Ci indicate savings of up to 0.5 % = -0.005). 

Furthermore, one-time costs are incurred in this scenario through the need for intensive coordination efforts on the part of both supply chain players to jointly discuss and adapt the stock management policy. This involves analyses of historic consumption data, amongst others. In a further step, the involved employees in the planning departments would need to be familiarised with the new inventory management policy. All in all, one-off labour and administrative costs amoxmting to 0.02 % and 0.01 % = 0.0002, afj j = 0.0001) are likely to be incurred according 

The described changes are included in the two matrices and in the form of elements agjjj, afj,j and Since no other changes are foreseen, all the 

To consider an extension of the SCI to a potential group of customers of company Ci requires the additional step of determining the relevant intersection for the individual balance sheet and P L items. The starting point for this is the creation of customer-product segments based on company C2 and the product differentiation effective there, company Ci maintains a consignment store for a fiirther 3 customers (Cs, C4, C5), 

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