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Cost & Benefit Analysis

Address the following issues related to stocking solutions and ROI in the Automotive Industry.

1. Conduct a cost/benefit analysis on the solution your team has decided.
2. Determine when and how this tool can be used.
3. Determine the feasibility of leadership solutions according to best practices for making complex and costly decisions.

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Cost & Benefit Analysis:
Stocking Solutions and Return on Investment in the Automotive Industry

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Cost & Benefit Analysis:
Stocking Solutions and Return on Investment in the Automotive Industry
Industry as well as business management literature presents well documented evidence that an automobile manufacturer's supply chain management particularly the firm's stocking solutions or inventory management is a significant source of competitive advantage. Cachon and Olivares (2010) point out that "from 1995 to 2004, Toyota consistently carried approximately 30 fewer days of supply than General Motors" (p. 202). It is not surprising therefore that during this time, Toyota managed to encroached on GM's market superiority in its home market and became not only the top automobile manufacturer in the United States, but also in the world.
Researchers and industry practitioner alike agree that stocking solutions and return on investment are important decisions that can affect the financial sustainability of an automotive company. They have also agreed about the following issues:
1. Conducting a cost and benefit analysis of stocking solutions before they are implemented is a necessary step in preserving the company's ROI.
2. Identification of the parameters of when ...

Solution Summary

The cost and benefit analysis is provided.

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