Increase ROI
B: Control The Inventory of Finished Goods and Raw Materials
D: Follow the company's inventory policy
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.
Relation | Assumption(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-B | 1.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-C | 1. 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. |