AFM241 Chapter Notes -Gross Margin

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: Theophanis Stratopoulos

Document Summary

Whirlpool europe manufactures products based on sales budgets/forecasts. Operated 11 plants, 10 located in europe and 1 in africa. Each plant produces a specific product line. Unique country requirements (language, attribute preferences) resulted in multiple stock- keeping units (skus) for the same model. Orders move from manufacturing to one of two central distribution centers and then on to one of 12 regional distribution centers. Each european market has a country sales office responsible for sales generation. Goal is to design and implement an erp that would allow whirlpool to better serve its customers and also reduce inventory by 12 days of sales. Accomplished through a (new) information system that allow a country sales office to view product throughout, better integration with suppliers and increased inventory visibility, build products to specific orders from contractors. Erp system allow for more transparent supply chain, eliminating reserved, allocated and obsolete units and reducing the in-transit time. Reduce 12 days of inventory in new wave.