Whirlpool Project Atlantic Erp

Question 2:
The post-ERP inventory turnover has join ond comp bed to pre-ERP, which government agency that the staunch is buying inventory more efficiently and obtaining stronger gross 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 system is share 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 faster turnover, which enables the firm to provide more variety 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 change in the margin is largely due to the increase in revenue. in time as the project matures in 2007, the cost savings compared to cost incurred is still miniscule 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 have 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% internal 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 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 room to make estimation errors, so its not an important 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, order it on our website: Ordercustompaper.com



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