Whirlpool Project Atlantic Erp

Question 2: The post-ERP stock list turnover has join ond comp lie with 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 organization is sh are 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 fleet turnover, which enables the firm to provide more renewal 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 implementation; thus, the main c hange in the margin is largely ascribable to the increase in revenue. in time as the envision matures in 2007, the live savings compared to toll incurred is still little compared to the revenue earned (cite case). The increase in revenue is chiefly due to the increase inventory turnover as we mentioned earlier.

The faster sales and increase in customer loyalty absorb 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% inner rate of return (IRR) will resolve in a NPV of 0 (cite case). As you can see, the IRR is significantly hig her than the cost of capital, meaning WP sho! uld 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 manner to make estimation errors, so its not an all important(predicate) 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, direct it on our website: OrderCustomPaper.com

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