Whirlpool Project Atlantic Erp

Question 2: The post-ERP stock-taking turnover has join ond comp discern to pre-ERP, which government agency that the staunch is buying inventory more than efficiently and obtaining stronger gross receipts (Investopedia). Inventory turnover in days is decreasing post-ERP, which again, justifies that the ERP outline is improving the firms overall efficiency. The ERP administration is sh atomic number 18 the firm manage their inventory better, which decreases the level of excess and old inventory. Consequently, all these positive factors in combination will solution in additional benefits for a higher NPV. Furthermore, the increase in incremental margin changes are attributed to a prompt turnover, which enables the firm to provide more sorting for clients and accordingly increase client satisfaction. These marginal changes include the changes of revenue and expenses post-ERP system. According the graph, bell has not changed as much since the murder; thus, the main c hange in the margin is largely out-of-pocket to the increase in revenue. in time as the mould matures in 2007, the live savings compared to address incurred is still little compared to the revenue earned (cite case). The increase in revenue is principally due to the increase inventory turnover as we mentioned earlier.

The faster sales and increase in customer loyalty project significantly increased revenue, which amounts to further increase in NPV. The cost of capital for WP is 9%, but as we calculated, a 34.78% indispensable rate of return (IRR) will resolve in a NPV of 0 (cite case). As you can see, th e IRR is significantly higher than the cost ! of capital, meaning WP should keep implementing the system. Generally, the implementation of these systems are heavily influenced by the COC. However, in our situation, the spread gives the firm a lot of live to make estimation errors, so its not an serious factor associated with the NPV analysis. Question 3: We echo that WP should continue implementing the ERP system because of the positive benefits that...If you want to get a full essay, revision it on our website: BestEssayCheap.com

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