Complete Business Operations Analysis for Smart Decision Making
Green (60-80%): Optimal utilization range | Yellow (80-85%): Near capacity, plan for expansion | Red (85%+): Bottleneck detected, immediate action required | Blue (<60%): Underutilized, consider cost reduction
Choose MAKE when: Core competency, quality critical, long-term volumes, strategic control needed | Choose BUY when: Non-core activities, seasonal demand, supplier expertise, cash flow constraints
Economic Order Quantity (EOQ) minimizes total inventory costs by finding the optimal balance between ordering costs and carrying costs. Benefits: Reduced inventory investment, lower storage costs, fewer stockouts, improved cash flow
A+ (90+): Strategic Partner - Long-term contracts | A (80-89): Preferred Supplier - Primary choice | B (70-79): Approved Supplier - Monitor performance | C (60-69): Conditional - Improvement needed | D (<60): Not Recommended - Find alternatives
ROI >25%: Excellent investment, proceed immediately | ROI 15-25%: Good investment, recommended | ROI 10-15%: Consider carefully, evaluate alternatives | ROI <10%: Not recommended, explore other options | Payback <2 years: Fast recovery, low risk