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Complexity in all aspects of business (products, processes, organizations) has made planning and forecasting more difficult and a fundamental lack of understanding of complexity often drives behaviors intended to reduce costs, but actually increase them while decreasing service level. In this presentation delivered at the 2014 APICS International Conference, we explore the sources of complexity facing businesses today and how complexity manifests itself in poorer performance and higher costs. In doing so we will explore Wilson Perumal & Company’s Square Root Costing methodology for more accurately allocating complexity costs across an organization through a real-life client example.
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