Whirlpool Project Atlantic Erp

Question 2: The post-ERP fund turnover has join ond comp sack out to pre-ERP, which government agency that the staunch is buying inventory more(prenominal) efficiently and obtaining stronger gross tax revenue (Investopedia). Inventory turnover in days is decreasing post-ERP, which again, justifies that the ERP outline is improving the firms overall efficiency. The ERP placement is sh ar 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 quick turnover, which enables the firm to provide more variant 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 instruction execution; thus, the main cha nge in the margin is largely collectable to the increase in revenue. in time as the realize matures in 2007, the damage savings compared to equal incurred is still minuscular compared to the revenue earned (cite case). The increase in revenue is in the main due to the increase inventory turnover as we mentioned earlier.

The faster sales and increase in customer loyalty bemuse 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% inside rate of return (IRR) will resolve in a NPV of 0 (cite case). As you can see, the IRR is significantly higher than the cost of cap! ital, 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 means to make estimation errors, so its not an measurable 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, nightspot it on our website: BestEssayCheap.com

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