Revenue increases

Figure 7-16. Typicai revenue increase compared to expander upgrade costs (6 months).

Lines of constant annual revenue are shown as dotted lines in Figure 3.12, with revenue increasing with increasing distance from the origin. It is clear from Figure 3.12 that the optimum point corresponds with the extreme point at the intersection of the two equality constraints at Point C. 

The direct seller now already has a small number of regular customers sales revenue increases relative to the first stage. 

Put thermometer board in lobby showing revenue increases from innovation... 

Primarily Revenue Increases through Radical Innovation... 

For the maximization of profit, it is evident that the capacities of all plants hit the maximum. This is because, at the highest capacities, although total cost increases, total revenue increases to a greater extent thus, maximum capacities translate to maximum profit. In addition, the ratios of aai, an, e2 and en were found to take on multiple solutions for... 

The virtual test results provided a wealth of information on the detailed flow and thermal characteristics inside the unit, which would have been very difficult to obtain experimentally. It was based on such detailed information that the cause of the operational problem was uncovered. The plant engineers were then able to exploit the new understanding from the virtual test to make modifications on the burners. The temperature differential between the two process streams dropped from hundreds to tens of °F. Energy consumption of the furnace was reduced due to improved efficiency. More importantly, the unit could now handle an elevated throughput, translating into a revenue increase of almost CDN 300,000 per year. 

Between 1998 and 1999, industry-wide sales and revenues increased by 13% to 16.1 billion and 22.3 billion respectively. 

It can be shown (Exercise 12.4) that at the maximum, the reactor batch time is Topi 1-35 day, with a fractional conversion, Xop, of 0.514. At longer times, while the revenues increase due to increased conversion and the separation costs decrease, the gross profit decreases due to the increase in the batch time in the denominator of Eq. (12.8). At shorter times, the revenues decrease due to smaller eonver-sion and separation costs increase due to a more diffieult separation, more than countering the decrease in the denominator and leading to smaller gross profit. At the maximum, GP p, = 516.8/day. Note that GP < 0 when t < 0.507 day. ... 

Revenue Increase fill rates (defined as cases delivered divided by cases ordered) and reduce out-of-stocks by 3-10% ... 

Business unit CEO Enterprise systems, expansions/ contractions Business unit improvement Revenue increase or cost reduction... 

Scenario 2 is top-down at the business unit level, with projects that cross department boundaries. A customer relationship management (CRM) system is an example. We shall increase our sales 5 percent might be a claim of success for the system. However, an auditor might have difficulty tracing any hard return revenue increases to the system. 

Forging supply chain partnerships Relationships with suppliers and customers are arms length at best, antagonistic at worst. Collaboration up and down the supply chain is limited to transaction data. Efforts are limited to supplier initiatives focused on cost reduction, not revenue increases. Partners collaborate but roles are static. Partners pursue sphere strategies. Trading partners in the supply chain expand their value contributions. 

Fortunately, RCC s business performance was better than ever. In 1979-80, revenues increased by 30 per cent for the second year in a row. Total sales were close to 49 million, with 3.4 million profit, and exports accounted for no less than 97 per cent of business. This record was all the more impressive in the absence of the sizeable R D grant that CPD had received every year from the government. There vras still some funding, slated to end in 1981, for accelerator development, but otherwise RCC had received no federal R D money since 1977. ... 

Total logistics costs are the sum of the inventory, transportation, and facility costs. The facilities in a supply chain network should at least equal the number that minimizes total logistics cost. A firm may increase the number of facihties beyond this point to improve the response time to its customers. This decision is justified if the revenue increase from improved response outweighs the increased cost from additional facihties. 

Increasing scale drives revenue, increasing revenue drives investment, increasing investment drives performance, and increasing performance drives value, which in turn drives scale. 

Finally, the presented quantification approach did not take into account the possible distribution of the value added produced by the implementation of the investigated SCI across the affected supply chain players. This aspect depends strongly on the individual character of the supply chain and the players involved and is characterised by the power distribution and trust between the companies (Bemdt, 2003 66), At this point, the inductive nature of the quantification approach comes to the fore once more. One must bear in mind that the calculations are made in the context of a dyadic scenario of a supplier-buyer relationship, where a relatively high degree of transparency exists only with respect to the cost and revenue structure linked directly to the other player. The cost savings or revenue increases, benefiting one player as a... 

Besides customer expectation, perception has to be considered (Gupta Zeithaml, 2006 720). Usually customers need time to notice improvements in a company s logistics customer service, which delays their reaction (Pisharodi Langley, 1990 28). Therefore, the complete revenue-enhancement potential is not fully realized immediately after the implementation of a supply chain. This effect may be integrated in terms of a weighting factor for the revenue increase over time. 

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