Increase ROI

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We are using a new software that is intended to help us to control our inventory of final product and raw materials. Unfortunately our production department always is short of materials and our supply chain area insist that they must control inventory.

D: Follow the company's inventory policy
D': Produce what the market demands
B: Control The Inventory of Finished Goods and Raw Materials
C: Delivery The Product Required by The Market
A: INCREASE THE COMPANY'S ROI
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In order to INCREASE THE COMPANY'S ROI I must Control The Inventory of Finished Goods and Raw Materials and in order to Control The Inventory of Finished Goods and Raw Materials I must Follow the company's inventory policy. But, in order to INCREASE THE COMPANY'S ROI I must also Delivery The Product Required by The Market and in order to Delivery The Product Required by The Market I must Produce what the market demands. I can't both Follow the company's inventory policy and Produce what the market demands.
RelationAssumption(s)Injection(s)
D-D'1. There is not resources to produce the market's demand.

2. There is not match between the market demand and the production planning.
1. Improve the production and demand planning process.
B-D.We need to control The finantial costs.
.There is no room for additional raw material.
.There is no room for additional finished goods.
.There is limited hours to program additional production.
.Be sure that the production mix meet the sales requirements.
.Improve the shipping process in order to avoid material accumulation.
.Reduce the lead time.
.Get a better resources planning.
C-D'.Production must follow what sales area demands.
.We need to satisfy our customers
.The ordes might be taken by other suppliers.
.
.Production must improve its lead time.
A-B1.Inventory is considered as Inversion.

2.Less Inversion more ROI.

1.You must develop a plan to have the inventory required to maximize the ROI.
A-C1. The sales increase the Thoughput.

2. The company requires cash flow to survive.

3. We need to keep our customers.
1. The company must work with a market segmentation in order to deliver value in a more efficient way.