An approach to optimising the profits of a manufacturing organisation is described. The concept is based on profit‐optimising computer models of the business. The problems addressed, how the business‐modelling tools work, and how this concept has successfully been implemented in industry are all described. The system addresses the traditionally poor interactions between the three main functions of an organisation, namely marketing, production and finance. These units have different, often conflicting objectives, and are not directly concerned with the total profitability of the organisation. The solution to this problem is a common language provided by the business model. The business model is a powerful tool, used to identify the optimum product mix and to simulate the effect of decisions on profits and plant.
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