Isn’t It Obvious
A: sell the most amount of items and make a large profit
Click on the icons on the arrows to see assumptions and injections
In order to sell the most amount of items and make a large profit I must sell more items and make money and in order to sell more items and make money I must increase the ROI at each store by lowering inventories. But, in order to sell the most amount of items and make a large profit I must also keep the store managers happy and in order to keep the store managers happy I must to keep store managers happy by holding large inventories.. I can't both increase the ROI at each store by lowering inventories and to keep store managers happy by holding large inventories..
Relation | Assumption(s) | Injection(s) |
D-D' | Low inventories to managers means that there isn't going to be large sales to boost the ROI. | Prove to the managers that decreasing the number of inventory of unprofitable items helps give space to items that sell and also offers the ability to expand their selection. |
B-D | High inventories increase operating expenses and often provide the wrong types of material. | Large inventories of many hot items is good because it allows them to sell faster. |
C-D' | large inventories prove that the store is doing well and that they will have the material that they think they need. | Take an accounting of all the unsold items there are and also show how many of the missing items could be sold. |