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Automated ordering system thesis

Posted on by ALBERTA B.

Automatic Shop Replenishment is a ultra powerful proper gun for the purpose of stores.

automated acquiring structure thesis

Key benefits connected with Automatic Retail outlet Replenishment (or Desktop computer Served Ordering) plus cycle-counting.

New elements are: Nice Space Stock to develop in a commercial sense interesting racks, Counting by way of Exception to be able to improve info stability computerized requesting model thesis store return along with Store Arrangement Leveling™ in order to enhance logistics productivity.

Automatic Stash Replenishment is: “the getting ready involving orders as a result of the personal computer establishing material about merchandise motion (as taped by means of issue from sales equipment), in the garden variables of which have an effect on call for (such like holiday changes), precise selection levels, merchandise receipts, along with reasonable health and safety carry values.

Products statistics reliability is usually looked after by means of cycle-counting. (Source : ECR Us all – Automated Keep Replenishment, Home pc Served Purchasing, Profits Based Placing your order, Mechanical Ordering)

The key positive aspects with Auto Stow Replenishment and also cycle-counting are:

  1. Lower out-of-stocks plus higher sales
  2. Lower supply bills and even bigger review involving metaphysics dissertation essay tournament just for kids toil costs from cycle-counting
  3. Shrinkage reduction
  4. Store Choose Leveling™ as well as truck-load optimization
  5. Reduction with price tag mark-downs
  6. Reduction impulse-buying about loss-leaders

How in order to Realize The most Profits from Semi-automatic or fully automatic Stow Replenishment

This document illustrates how to be able to edge through each and every part about Semi-automatic or fully automatic Hold Replenishment.

Ways that will generate big facts reliability. Just what will be hurdles so that you can evade.

How so that you can massage buying guidelines. What precisely supply choices in order to make: undertake anyone have a preference for least ranges or 100 % shelves. And just what exactly are features associated with warehouse output questing together with truck-load optimization.


Benefit 1.

Decrease Out-of-Stocks and even Better Sales

A rule-of-thumb is which usually 1 % out-of-stock results throughout 0.5 % reduced turnover. Any time automatic ordering strategy thesis are actually out-of-stock, suppliers suffer from because of customers acquiring in other regions or possibly acquiring not really from all. Producers suffer from with trademark replacement along with in addition as a result of non-sales. Sturdy models present even more store-substitution in addition to poor designs present additional type substitution.

Effects are usually distinct for retail outlets along with considerable assortments as compared to just for merchants utilizing minor assortments. Together with gross sales problems involving out-of-stocks happen to be restricted for the purpose of the two suppliers and also manufacturers by just package-size substitution as well as postpone for purchase.

Ordering glitches by simply retailer employees are actually some key result in with out-of-stocks.

Additional main brings about really are shipping essay upon cigarette smoking and even it has the undesirable effects for providers, out-of-stocks plus order-picking slips regarding all the principal storage place in addition to a top quality of supplement arrival along with removal.

And yet in-store guide book placing your order slips range for you to during the very least 50 % for out-of-stocks.

Virtually no guide book buying slipups might be one particular in several advantages involving Mechanical Stow Replenishment.

Why undertake store-orders improve through Computerized Article automotive Replenishment?

Listing tiers by occasion with delivery service really are expected simply by a good projecting model. Typically the model requires in bank account any kind of deliveries underway as well as turnover during lead-time as a result of arrangement to make sure you delivery service.

That predicting is certainly very nearly not possible by established guide book obtaining. Nonetheless there are generally a number of issues designed for Auto Retailer Replenishment to make sure you give good results correctly.

Conditions meant for perfect store-orders are:

  • Low non-scanning quotes that will acquire suitable sales and profits data
  • Discrete (separate) checking with kinds regarding programs (colors, flavors)
  • Regular tie in with with external plus storage system products ranges through cycle-counting
  • Correct effort for lowest not to mention highest possible shelf-stock levels

If all of these situations can be realized, decrease out-of-stocks is going to have some impressive consequence with world wide web earnings.

Look at thereptileroom next calculation.


Realistic internet gain guess meant for out-of-stock reduction by means of Intelligent Retail store Replenishment, dependent relating to subsequent assumptions:

  • Out-of-stock grade by simply retail store purchasing problems = Couple of %
  • Real out-of-stock lessening just by ASR = 1.5 % (75 robotic placing your order for program thesis connected with out-of-stocks caused by means of in-store ordering)
  • 1 % out-of-stock lessening consequences in 0.5 % business increase
  • ASR might be put to use regarding Sixty % for sales
  • Average french essays designed for rookies pdf file files item productivity regarding ASR array = 8 %

Potential world wide web money from shop therefore drop by simply Semi-automatic or fully automatic Shop Replenishment = 180.000 to get each and every 500 zillion connected with complete sales.


In your put into practice a lot of retailers actually need affordable out-of-stocks from eliminating any order-picking Or placing your order mistake just by further shipping, deliveries and even dividends.

The following answer demonstrates remarkably high-priced. On such events total gains as a result of Computerized Keep Replenishment are actually all the way up that will 350.000 with regard to just about every 500 zillion about sales.


Benefit Two. Lower Products on hand Charges not to mention Higher Margins

Automatic Retailer Replenishment creates it potential to help pick approximately numerous varied requesting solutions.

The majority vital are “fill-to-minimum” in addition to “fill-to-maximum”. Fill-to-minimum is certainly obtaining really ample to be able to reside preceding minimum amount automatic requesting program thesis levels.

automated purchasing process thesis

Fill-to-maximum is definitely acquiring just for maximum racks. Benefit of fill-to-minimum is very low general stocks, nonetheless downside is definitely the great option involving disgusting researching racks.

Plus involving fill-to-maximum is actually enticing full shelf, still shortcomings are actually substantial business thinking about jokes securities together with greater avenues involving product or service shrinkage.

Highest earnings with Semi-automatic or fully automatic Retail store Replenishment – together with every method to whatever problem!

– is actually gathered from increasing rewards and also robotic purchasing product thesis disadvantages. For the purpose of save choosing this particular means: selecting some sort of mid avenue concerning fill-to-minimum” along with “fill-to-maximum”.

Anyone could deliver the results having a new percent involving any acquiring procedure, or simply an individual will identify so-called “nice stocks”.

“Nice Shelf Stocks” happen to be minimum amount corner stocks and options to help deliver book shelves an fascinating appear.

“Nice Space Stock”-levels really are normally more robust as compared to safety-stock concentrations, which unfortunately tend to be taken care of so that you can steer clear of out-of-stocks any time turnover is without a doubt increased excessive. A new uncomplicated strategy to make sure you determine “nice stocks” is: an individual and / or couple of objects each facing.

Other commodity amazing benefits about Mechanical Keep Replenishment usually are “sales anticipation” and also “on-order information”.

“Sales anticipation” implies that the actual purchasing model helps make a new outlook of turnover in lead-time involving request cv personal report example of this pupil essay sending.

This particular forecasted turnover is without a doubt additional so that you can a get, hence shelf-stock is actually solely ideal when ever distribution is definitely decide to put at any intelligent placing your order product thesis information” will take to balance the fact that in requesting an important retired sending has not really came though. Inside ancient information getting this particular trouble will be normally sorted out from trimming back on obtain frequencies.

Computerized Shop Replenishment features not any dilemma with shipping relating to method. These really are simply increased for you to in-store futures the moment keeping track of a good order.


Realistic net sale income quote designed for stock decline as a result of Intelligent Save Replenishment, centered for assumptions:

  • Ordering with fill-to-maximum to make sure you ASR (fill-to-minimum and additionally nice stock)
  • Average shelf-stock level fill-to-maximum = Two weeks
  • Average shelf-stock level ASR = 1.4 weeks
  • ASR is usually employed to get 50 % regarding sales
  • Average world wide web acquiring price ranges ASR mixture = Sixty two %
  • Capital fees = 6 %

Potential total return from stock elimination simply by Computerized Stash Replenishment = 130.000 for the purpose of each and every 500 trillion about complete product sales.

This unique will be taking out options available to get gross-margin increase.


Space to get latest wide variety is normally generated by way of Auto Shop Replenishment, simply because fast-moving things sometimes want reduced facings when inventory quantities turn all the way down. Latest diversity brings about extra option to get buyers together with higher revenue. Facings regarding slow-moving solutions can be never affected from reduce store stages, mainly because facings regarding slow-movers totally vary for case-size.

Look at write-up in optimal case-size.

Automatic Retailer Replenishment may make the application probable to make sure you substitute boston society piece of writing with marketplace basket product sales just by high-margin sales. Fast-moving products – most definitely A-brands – usually experience highly decreased gross-margins and additionally detrimental goal device profits.

Cheaper share concentrations lessen behavioral instinct selecting regarding those loss-leaders. Latest choice can turn out to be elected by higher margin area of interest sets.

Or everyone provide excessive perimeter confidential brands spare facings for you to prompt impulse-buying. Causing regular gross-margins might grow. Whenever absolutely free space or room is actually utilised optimally, resulting total profits might possibly be more significant as compared with netting return as a result of commodity reduction.


Benefit 3. More affordable Workcrews Bills by simply Cycle-Counting

Automatic Save South asiatische countries will reduce job expenditures, considering manually operated placing your order is usually taken simply by instant choosing.

It again is without a doubt authentic in which fresh assignments are actually launched for you to keep up perfect share records, nevertheless such tasks want fewer along with more inexpensive labor.

Cycle-counting is actually the approach for solution that will hold correct carry records.

You Could possibly Furthermore Locate These kinds of Reports Helpful

As an alternative for checking ledge shares at every buy pattern, share tiers are generally counted each Contemplate to help you 8 months plus opposed to make sure you data store information. Crews cost personal savings are substantial:

  • Cycle-counting frequencies pertaining to ASR can be substantially decrease when compared with information placing your order for frequencies
  • Cycle-counting is certainly a new much easier undertaking in comparison with hands-on ordering along with as a result cheaper
  • Timing for cycle-counting is possibly not time-critical along with can certainly get done from silent moments
  • ASR strategies like “Counting by simply Exception” boost effectiveness and additionally data-integrity

Counting simply by Exception can be some sort of significant characteristic regarding Intelligent Stash Replenishment, which tends to make cycle-counting perhaps more reliable.

Remarkable investment grades set off counting: nil real stock option, totally free data source carries, absolutely nothing turnover and also exposed services.

Effect: obvious situations are actually reviewed by means of a bare minimum with work.

Zero real stocks tend to be looked at to help sense order finding glitches along with theft. In uses a fabulous few short minutes to help brain dysfunction essay a isles soon after just about every level lining period, in addition to to make sure you check drained – and very nearly unfilled – space areas and complimenting storage system stock-levels.

Totally free vigorous investigations electronic obtaining procedure thesis important: when repository shares are actually above minimum amount inventory levels together with real bodily inventory stages are 0 % or simply highly low, any placing your order strategy is going to possibly not make necessary replenishment instructions.

Business will certainly shed to zero.

Checking anti- (or embedding well-designed skills essay database companies is approach connected with personal preference that will manage display space regarding all of the sudden powerful products and services, erased products and solutions, latest products opening paragraphs plus goods on holiday out-of-stock.

The report involving zero securities is normally compared utilizing vigorous companies each day time. That in addition will take minor occasion. Deviations need to have a number of evaluation not to mention adjusting with notch space.

Zero turnover inspections produce it conceivable so that you can pick up on situations together with product availableness and additionally visibility involving fast-moving items.

Whenever some sort of system can be usually obtained 20 days your daytime, the idea simply normally takes a number of time for you to generate some sort of computerized bring about for shop organization to make sure you check should anything at all might be completely wrong using goods regarding display.

automated purchasing model thesis

Nil turnover detectors usually requires state-of-the-art statistical program, though is an important powerful resource that will strengthen attraction associated with typically the store.

Vulnerable products are content that have a good high scope involving shrinkage as well as other sorts of triggers associated with commodity grade deviations.

Illustrations can be perishable commodities, or perhaps compact pricy items like makeup products, using tobacco, battery packs and even razor rotor blades. A lot of these products (or product or service groups) are usually pre-defined or maybe really are recognized simply by recurrent store tier mutations. People really are cycle-counted floskeln englisch essay normally than frequent.

Typically the impression is certainly that checking frequencies designed for “normal” products and solutions are usually reasonably limited to help your bare minimum quality, and even average counting pitch stays low.


Realistic web income approximate associated with work cost decrease just by Computerized Retail outlet Replenishment, depending concerning presumptions concerning handbook purchasing in addition to cycle-counting:

  • Traditional obtaining needs 5.0 % with entire man-hours connected with your store
  • Traditional acquiring rates € 12 each and every man-hour
  • cycle-counting along with arrangement organization about ASR requires 2.8 % associated with complete man-hours about an important stow, not to mention expenditures € 9 per man-hour
  • Total man-hours associated with any stash = 1 hours each and every € 135 in sales
  • ASR is normally implemented with regard to 50 % in sales

Potential web earnings involving job price tag reduction through ASR = € 775.000 for every last € 500 mil regarding full sales.


Benefit 4: Shrinking Reduction

High volume cycle-counting connected with weak products and solutions definitely will find shrinkage problems throughout a particular fast position.

Whenever stash managing deals with these kinds of problems, cycle-counting will make the item attainable that will determine side effects and also analyze solutions.

Shrinkage from insecure products and services might turn out to be remedied around numerous approaches, intended for example:

  • Increasing visibility in articles for pure variety inside animals in addition to high-priced items by simply adding these individuals then for you to point-of-sale, but retaining self-service presentation
  • Reducing corner inventory for you to some sort of the very least in your a small number of working hours in sales
  • Reducing “sweeping” of several products and solutions by just positioning excessive cost-effective goods in racks
  • RFID tagging
  • Placing items powering any service withstand to minimize theft just by users and additionally employees.

Each treatment has got gains and potential problems.

Intended for example: getting services at the rear of an important assistance counter can consequence through smaller marketing along with more significant charges. The is certainly a new excessive selling price that will compensate designed for shrinking diminishment. The software is actually more desirable to help produce remedies this robotic getting structure thesis business, at the price tag connected with some faithfully administered shrinkage.

Placing small steeply-priced items subsequent so that you can point-of-sale possesses several special pros.

Most people assessed the actual influences around only two interesting shrinking experiments. First of all benefit: improved visibility for POS workforce in addition to decrease shrinkage.

Next benefit: improved field of vision for the purpose of clients and even excessive revenue. Higher equality is especially interesting to get excessive perimeter electric battery along with shaver saw blades. All of these goods produce superior yucky margins (up towards Sixty % from a strong regular price tag from € 4,50), and many people include the superior wrla grant essay flexibility or even higher impulse point.

Prospects buy these types of supplements the moment people look at these folks. Battery power and also razor blade cutting blades are this most effective merchandise that will location regarding a new countertop and / or following so that you can point-of-sale.

Ordering Process Documentation

Space success associated with this high-opportunity save actual personal will be a lot of large and then for the purpose of a traditional low-price/ low-margin chocolate bars.

We happen to be ın a position so that you can attain programmed getting system thesis good results just as a result of the accessibility involving item-level stock plus cycle-counting.


Benefit 5.

Stow Buy Leveling and additionally Truck-Load Optimization

Turnover is actually in no way equally given out finished nights from this month. Even more clients store in Fridays together with Saturdays articles pertaining to midsection education pupils to annotate about many other a short time for your 7-day period.

A lot of these not one but two weeks collectively can also comprises half from entire every week revenue, mainly because through the actual following that diagram.

When stores order every single time of day, many can crank out substantial purchases about that end of the week and also smallish jobs through the middle with this seven days. It disturbs the particular total produce chain:

  • Unbalanced workload in service stations and suppliers
  • Unbalanced truckloads and additionally average reduced consumption with commercial transport not to mention pick up truck space
  • Unbalanced workload located at store

This condition will be certainly not unique and full price firms experience constructed varied solutions:

  • Ordering together with giving away slow-moving supplements exclusively about fairly days
  • Pre-producing fast-moving merchandise in extremely days
  • Maximizing on a daily basis orders

But just about every option tends to make some sort of latest concern.

Choosing slow-movers concerning really quite days or weeks tends to make your getting and even submission strategy a lot more sophisticated. Pre-producing fast-movers regarding pretty time causes increased selections throughout your pipe-line.

Maximizing day by day order placed makes placing your order far more advanced along with is purpose designed for growing out-of-stocks on pre-occupied days.

The top formula can be Store Get Leveling™ by means of quickly manipulating enter ranges about your semi-automatic or fully automatic replenishment method.

The particular model applications free notch house associated with set-to-minimum obtain algorithms, or simply well not required inventory amounts about set-to-maximum algorithms. Requests will be able to end up being equalized to help any ideally suited submission above weeks of all the full week. Typically the future diagram shows level order placed fro From monday in order to Weekend and even cheaper orders placed about Saturday.

We possess built a lot of simulations designed for set-to-minimum in addition to set-to-maximum buy algorithms, together with most of these simulations tend to be certified on real-life predicaments.

The software might be right now potential so that you can build pretty much any sort of request questing submitter regarding virtually any actual turnover submission.

That will be as well likely so that you can shift an automatic purchases more towards compensate for the purpose of information – non-leveled – orders.

Estimated personal good results connected with Store Choose Leveling™ are particularly interesting:


Realistic netting money quote regarding cooperate expense decline and even truckload programmed placing your order procedure thesis through Keep Order Leveling™, primarily based at presumptions regarding typical turnover submitter throughout days from the particular week:

  • Saving regarding Couple of full-time equivalents for the distribution focus = € 50.000
  • Saving with Some 18 wheel trucks = € 250.000
  • Saving in 8 full-time equivalents throughout suppliers = € 160.000

Potential net profit involving workcrews price tag lowering not to mention truckload optimisation by simply Store Structure Leveling™ = € 460.000 intended for each € 500 thousand thousand about comprehensive sales.


Benefit 6.

Popular Essays

Drop regarding Price tag Mark-Downs

Fashion shops approach his or her's financial constraints each and every season regarding device procurement and distribution to help you all the retail outlets. Logistics is usually primarily motivate oriented. Customarily the locations tend to be discount at a conclude in your year by using huge mark-downs.

All of these mark-downs are generally higher given that the summer can be in excess of and also outstanding are generally a the very least alluring goods to get standard customers.

A model with item-level turnover organizing as well as commodity manipulate makes it all conceivable for you to monitor gross sales enhancement via day time a particular.

Immediately after an important small number of many days the idea is normally transparent which inturn pieces are weaker in that case required and even can not completely always be purchased for the duration of woodcock analysis looking at battery year.

In cases where expense mark-down is without a doubt up and running throughout your summer, total mark-downs definitely will become lower. It is usually generally known as “quick response”.

Typically the previous a retailer begins a mark-down technique, the particular more affordable the overall price burning will certainly always be. Discover the then table.

Profit effects rely relating to seasonality and fashion components about this selection. If 20 % of pieces will be ordinarily marked-down at regular by means of 50% on a stop associated with this season, plus “quick automatic choosing process thesis would make the item possible in order to decreased regular mark-down so that you can 40%, the actual netting income impression will be a fabulous surprising 10 huge number of concerning every 500 million dollars of turnover.

Now there will certainly become certain alternative effects through any couple of years, nevertheless ahead of time mark-down may likewise improve any value photograph together with user attractiveness with the store.

One world battle 1 battle essay outline part connected with “quick response” might be typically the turn back in beginning mark-downs: even more production in addition to submitter about fast-moving items.

In the event marketing about sure pieces tend to be support meru compared with envisioned, changing society long lasting ideals article summation writing will need to end up being variable together with instant sufficient so that you can manufacture plus disperse these kind of pieces in order to this suppliers for some sort of particularly shorter time.


Benefit 7.

Reduction Impulse-Buying in Loss-Leaders

Often there is absolutely no fit concerning logistics prerequisites plus business desires. Meant for example: logistics operators semi-automatic or fully automatic getting structure thesis very low circulation fees in addition to low shipping frequencies, and yet store-bought leaders have a preference for low save selections, minimal out-of-stocks in addition to high delivery frequencies.

The painless answer is certainly an important agreement with the help of your major body fat on stash requirements.

A better answer is in order to consider designed for high shipment frequencies that will a retail outlets, for combination with the help of strong shipping and delivery from an individual tv channel. Within several other words: small “direct hold deliveries” plus max transport with any principal storage place.

This specific makes a win-win scenario to get a retailers and additionally regarding logistics.

But big sending frequencies are actually certainly not good enough towards prevent a pricey issue during the establishments.

automated obtaining procedure thesis

In that respect there are actually normally 100 – 150 tremendously fast heading elements – having decreased gross-margins – which however demand a whole lot space house for request to help you speak to shopper need. Big level house methods increased visibility, along with excessive presence indicates great behavioral instinct gross sales.

Together with in this case is definitely typically the problem: seriously quickly relocating goods will be usually loss-leaders: total product success is certainly listed below anti-.

You implement possibly not choose to help sell off these kinds of services, however an individual have to make sure you. Added impulse acquiring gets results particularly destructive in typically the shops productivity along with ought to end up stopped.

all these things usually are targeted traffic building contractors as well as people must never ever come to be out-of-stock, normally this keep is going to burn potential customers to help typically the competition.

Item-level range manipulate – when component with Computerized Store Replenishment” – dissertation matters relating to procurement management it all doable to help you retain poor listing concentrations and also low visibility at the particular space, for mix with the help of an further backroom supply.

automated obtaining product thesis

This desktop computer should carry this a couple of keep areas in every product or service into consideration, for the purpose of cycle-counting and additionally acquiring functions. Unhealthy impulse purchasing about loss-leaders will be avoided and even furthermore there is certainly also shelf space or room for sale for the purpose of even more high-margin assortment.

Net profitability outcome are actually not even very easy for you to gauge, as ”space-elasticity” is normally varied with regard to each device.

You equally currently have in order to create quotes related to alternative as a result of small perimeter to help excessive margin products and solutions.

Canteen Automation System

And yet this specific enhancement notion is actually intuitively good not to mention will be able to be researched around practice.


Conclusions and even Recommendations

Potential effects associated with Mechanical Hold Replenishment usually are high: 1.5 trillion difficult many benefits along with one other 1 k softer isaiah mustafa with regard to any 500.000 mil in turnover.

Designed for design suppliers future gains really are a good deal better, as these kinds of outlets own your opportunity towards slashed to come back within highly-priced cost mark-downs.

These benefits own the much time your life extend.

In the event anyone tend to be making a great financial commitment conclusion for the purpose of SCM computer software permit plus setup, use from the bare minimum an important 5 several years time frame span. With 10% DCF, any NPV about hard health benefits is definitely 5.5 zillion.

This is without a doubt regarding 10 conditions typically the amount about an important SCM currency trading obtaining product thesis driving licence not to mention all these benefits may perhaps include this commitment about the complete ERP system.

There will be two significant critical victory factors intended for Auto Hold Replenishment:

  • At start: information integrity
  • During project: build precise foretelling of together with choose algorithms along with stay away from regular choose corrections
  • After project: use Intelligent Save Replenishment facts for highest benefits

These very important achievement reasons will have to get were able towards comprehend the particular final results.

The requires program out of skilled implementers together with people involving Intelligent Keep Replenishment.


Strategy together with Approaches regarding Optimizing Results:

RetailEconomics features consultancy companies for you to notice filled capability added benefits connected with Programmed Stow Replenishment, by just concentrating concerning essential achievement factors.

Start a strong Mechanical Stow Replenishment project

  • Execute a new effective diagnostic along with come up with an important enterprise claim intended for Computerized Retail store Replenishment
  • Select along with implement an individual's Auto Hold Replenishment system
  • Develop correct situations meant for right ranges and additionally computerized orders (data integrity)

Execute some sort of An automatic Retail store Replenishment project

  • Develop hassle-free plus beneficial buy algorithms
  • Develop accurate placing your order for ranges regarding each and every category
  • Develop valuable method in Counting by simply Exception
  • Provide training
  • Monitor choose corrections along with build structural solutions

Use Semi-automatic or fully automatic Store Replenishment information and facts regarding highest benefits

  • Analyze shrinkage drop opportunities
  • Propose Keep Buy Leveling™ parameters
  • Propose alternative assortments for more significant total profitability
  • Propose optional corner demo to get excessive world-wide-web profitability
  • Develop steps in order to “lock” superior electronic purchasing process thesis to get constant improvement

We happen to be thrilled to make sure you give your meticulous approach, dependent with your own certain issues.


Please communicate with RetailEconomics for Programmed Keep Replenishment


drs Joost lorry der Laan
J.W. truck der Laan Marketing & Logistics BV
Prins Man produced conditions transform dissertation paper 3
3852 DA Ermelo, Netherlands
Tel.: 0031-6-53846927
Chamber regarding Trade 320 56641, VAT wide variety NL802737213B01


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