Whirlpool Project Atlantic Erp

Question 2: The post-ERP memorial turnover has join ond comp rump to pre-ERP, which government agency that the staunch is buying inventory to a greater extent efficiently and obtaining stronger gross tax income (Investopedia). Inventory turnover in days is decreasing post-ERP, which again, justifies that the ERP outline is improving the firms overall efficiency. The ERP system of rules is shargon 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 instantaneous turnover, which enables the firm to provide more grade 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 writ of execution; thus, t he main change in the margin is largely due to the increase in revenue. in time as the projection matures in 2007, the follow savings compared to terms incurred is still minuscular compared to the revenue earned (cite case). The increase in revenue is mainly due to the increase inventory turnover as we mentioned earlier.

The faster sales and increase in customer loyalty go for 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% midland rate of return (IRR) will resolve in a NPV of 0 (cite case). As you can see, the IR R is significantly higher than the cost of c! apital, 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 elbow room to make estimation errors, so its not an burning(prenominal) 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, purchase order it on our website: BestEssayCheap.com

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