First, from this model, one should be able to see that the opportunity to increase profits is real and substantial. In addition, the accounting format does not have to be reinvented. The current information management systems should be more than adequate for the modifications needed to obtain the necessary cost data. In addition, the resulting information can be integrated with the firm's current systems systems to facilitate order taking. The applications of the model proactively reduce the chances of taking future orders, which would be losers. Further, this initiative can be implemented with the desired information in as little as 8 to 10 months.Second, there is fairly sophisticated and exhaustive analysis associated with this model, which should be conducted by "seasoned" experts. The analysis includes understanding the major sources of variability using analysis of variance (ANOVA) and regression modeling. However, the results can be very rewarding. For additional information on this topic, refer to References 2 and 3.
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