Alex’s new constraint – Demand
B: Increase market demand
D: accept orders 10% below cost
A: Increase profit
Click on the icons on the arrows to see assumptions and injections
C: avoid price wars
D': Not accept orders 10% below cost
In order to Increase profit I must Increase market demand and in order to Increase market demand I must accept orders 10% below cost. But, in order to Increase profit I must also avoid price wars and in order to avoid price wars I must Not accept orders 10% below cost. I can't both accept orders 10% below cost and Not accept orders 10% below cost.
| Relation | Assumption(s) | Injection(s) |
| D-D' | Both decisions/actions are mutally exclusive. | |
| B-D | accepting orders 10% below cost will increase market's demand for our products. | There are other actions to increase market demand like offering faster shipping times. |
| C-D' | 1. Accepting orders 10% below cost would cause price wars | Adding another competitive advantage with the reduced cost could avoid a price war. |
| A-B | 1. Market demand is a constraint 2. Market demand will increase profits | |
| A-C | 1. A price war would cause loss of market share 2. A price war would cause a decrease in profits |