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Net Income can show you are making a profit and how much profit. ROI tells you if the net profit is big enough vs. the investment made to know if you want more of this kind of business.
To facilitate making operational rules, we restate The Goal:
We make more money by 1) Increasing Throughput, 2) Decreasing Inventory, and 3) Decreasing Operational Expenses.
THROUGHTPUT is the rate the system generates SALES.
INVENTORY is all the money the system has invested in purchasing things which it intends to sell.
OPERATIONAL EXPENSE is all the money the system spends in order to turn INVENTORY into THROUGHPUT...
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