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The economy has recently gone through a period of industrial expansion coupled with high inflation where industry has tended to grow out of its problems by a combination of increases in output and higher prices. These policies, however, at a certain stage in the development will approach the limits to economic growth, and industry will find that a number of severe problems appear simultaneously. This leads to a period of concentration and economic decline where traditionally industry looks to the Government for relief and assistance; but it could be argued that instead they should consider a critical look at their own patterns of operation. If industry could eliminate the inefficient and ineffective elements in the structure, and concentrate upon improving the quality of their operation, then it is possible that policies adopted for economic survival will lead to growth and expansion. One way in which improvements could be made in the industrial structure is by streamlining the logistics system.

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