Great educational post from Pluto on the other boa

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You do realize orders are non-binding purchase agreements. That an order doesn't mean Jack unless it's shipped.

That is true perhaps to a few. For revenue purposes, revenue cannot be booked based on a purchase order. But to the many, including those who have been in positions of general management, purchase orders are the most important aids to revenue and cash flow planning, manufacturing forecasting, inventory and space forecasting, and product planning through the distribution channels.

That is Business Management 101.


Now, and for FWIW. The reagent in Glucose Oxidase test strips like GenUltimate is affected by sea air. Sailors and the merchant marine can take Glucose Oxidase strips to sea and they will work +/- 3% per month during the time at at sea. It is OK for an individual and his/her testing needs, but sending entire shipping containers to sea is not a good idea, especially when the FDA requires a registrant to verify that post manufactured strips meet the 97% standard. That is... the strips have to be +/- 15% of release standard 97% of the time. Glucose Hexokinase and Glucose Dehydroginase strips can travel at sea and still meet FDA release standards, but the FDA ordered all Glucose Hexokinase strips pulled from the market in 2011 because of problems with interferences from new fangled prescription drugs. So, about 80% of test strips, including the J&J test strips travel by air and Flying Tigers benefits greatly.

That is medical device Business Management 101.


As to quantity measure. This has been the biggest disinformation run by a few. I have been over this at least 10 times. Companies have units of measure for their products. In fact with the new FDA UDI program, products now have have up to three units of measure, and a guaranteed at least two. The FDA requires a company to label its products at the first unit of measure for the retail component ... a box, a unit, a piece. One box/unit/piece sold to a consumer/diabetic. Nobody sells individual strips. Companies sell boxes of 25, or 50 or 100 strips. So the DECN order to the Koreans for example was either 40,000 boxes, units or pieces of 25, 50 or 100 strips. 40,000 times 50 = 2 million strips, not 800. Someone saying otherwise when facts are known and easily determined is disinformation or fake information. But that's IMO how society works these days.

The second unit of measure is what the FDA calls the inner case. Every company has an inner case for their products. Inner cases hold either 12 boxes, units, or pieces (Abbott), 24 boxes, units, or pieces (Lifescan, Bayer, DECN), or 36 boxes, units or pieces (Roche).

The third unit of measure is what the FDA calls the outer case. The outer case holds a number of inner cases. Abbott does not have an outer case. Neither does Bayer, or Lifescan. Roche ships 10 inner cases in each outer case. DECN ships 18 inner cases in each outer case. So it is possible that when DECN stated it shipped 40,000 pieces to Korea, they may have meant 40,000 outer cases. Each DECN outer case holds 432 boxes, units, pieces. So the Korean orders could have been as many as 40,000 times 432 times 50, or 864 million test strips.

However, since there are only 75,000 users of Lifescan Ultra in Korea, it is most likely that the two month shipments to Korea (December, January) were 40,000 boxes of 50 and/or 100 (or 2 million to 4 million test strips). And that would mean an order spread over two reporting periods (so far) of about $200,000+.

And that is General Business Management 101.

This is not an easy business, but eventually it will come to you.

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