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The model's conditions represented a utopia, in which consumers shop daily at the same store and buy one bottle of shampoo each time, paying a uniform price. In this ideal world, everything would be synchronized and smooth, with a supply chain that worked as precisely and predictably as a Swiss watch. BiosGroup applied a term for that efficiency - "Laminar Flow" - by taking a page out of the world of hydrodynamics, a branch of physics having to do with the motion and action of water and other liquids.
To get a better idea of Laminar Flow, imagine a gentle river without rapids or waterfalls, where everything moves along without turbulence. When turbulence appears, however, the flow either stops or changes unpredictably. If it stops, picture a person paddling a canoe and suddenly getting caught in a whirlpool. The business equivalent is inventory piling up in the back room. Laminar Flow would prevent a pileup; everything would be moving smoothly all the time. Pure Laminar Flow can't be achieved in the supply chain - workers must unload products off trucks, etc. - but it can certainly be a goal.
After BiosGroup first created its model of an ideal situation with no volatility on the consumer side, it then introduced volatility to measure its effects. Called "Event-Based Simulators," these models were drawn from a probability distribution that predicts consumers' behavior as they shop and how much they buy, as well as from the state of the shelf - namely, whether o
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