Implementing TOC-based SCM solutions
B: Profit by meeting all due dates and being in total control of inventories
D: Compute T/IDD values and share across the SC
A: Meet all deadlines by managing inventories correctly, which will result in an increase in profit as well.
A-B: | Assumption(s) | Injection(s) |
Inventory will be received on time in order to be shipped on time. | Inventory will not arrive on schedule 100% of the time. There are logistics involved that will not allow that. |
In order to Meet all deadlines by managing inventories correctly, which will result in an increase in profit as well. I must Profit by meeting all due dates and being in total control of inventories and in order to Profit by meeting all due dates and being in total control of inventories I must Compute T/IDD values and share across the SC. But, in order to Meet all deadlines by managing inventories correctly, which will result in an increase in profit as well. I must also Lose profit by mismanaging inventories and missing due dates. and in order to Lose profit by mismanaging inventories and missing due dates. I must Go without computations and sharing of T/IDD values across the SC. I can't both Compute T/IDD values and share across the SC and Go without computations and sharing of T/IDD values across the SC.
Relation | Assumption(s) | Injection(s) |
D-D' | Computations will be accurate and concise. | Value will not be added if the computations are not done correctly. |
B-D | These calculations will be able to tell us how much money we are losing if we ship late and mis-manage inventories. | Incorrect calculations would yield no fruit in terms of obtaining valuable information about TWT. |
C-D' | Computations will not add value to the process, so therefore do not need to be calculated. | Computations can be valuable if they are accurate. |
A-B | Inventory will be received on time in order to be shipped on time. | Inventory will not arrive on schedule 100% of the time. There are logistics involved that will not allow that. |
A-C | Inventory will arrive late & will be processed late regardless of whether it is received on time or not. | Inventory can be received and processed on time sometimes. |