xerox bit essays

xerox bit essays 1. What value does BIT create in the distribution value chain for books? Book-In-Time is a digital low-cost, order-to-fulfillment system for the on-demand printing of books. Xeroxs unique technology had been optimized for custom lengths of as low as one but could economically handle up to 1,200 or more. At run lengths of less than 25 books, other printing methods would have to incur a minimum cost of $5,000 or so, whereas Book-In-Time could conceivably deliver at a cost of only $6.90 per book. BIT creates value in the distribution chain in two distinct cost saving ways. First because BIT is a just in time system where publishers can customize the number of book runs they would like to establish. This added flexibility will help reduce the cost of inventory and returned books. According to the case it states that of the publishers selling price 25% of the cost factored in was the cost of books returned. BIT would dramatically reduce or eliminated this cost. Another way BIT creates a cost value in the distribution chain is that it enables books that were out of print or book with low demand to be printed. Before book in time cost per book was a function of print run size. For large run sizes the per unit costs were low because there was a greater quantity of books created, however for short runs the fixed cost were spread over a smaller number of books, raising the per-unit cost. Many publishers were reluctant in publishing low demand books because of the increased cost, however BIT can allow the supplier to match the supply with the demand without sacrificing any cost. The costs benefits from BIT should trickle down the distribution value chain. The cost savings the publisher recognized will then be transferred to the retail chains/wholesalers that purchase the books and then ultimately the customers will benefit from a reduction in price. Also the authors of books with lo ...