What is Recall?
Recall
Retrieving items from customers.
What it means
If we know that a defect has gone to the customer, we will retrieve the item and replace it with a new one. The LOT number determines how much you can recover.
Recovery involves not only the cost of rebuilding. It costs money to transport back and forth, and you lose the trust of your customers.
At the pen factory
On the 28th day, two bundles of 30 pens from the defective warehouse were recovered. It costs 25,850 won, including the material cost of 5,850 won and the transportation cost of 20,000 won. The money I earned from selling those 30 pens was 15,000 won.
Why it matters
If you send out a defective product, you spend more than you earn. So it is cheaper to block it before exporting it.