ss all aspects of operations. Factors such as credit terms, inventory levels, distribution and shipping methods, raw materials, inventory systems, labor costs, inflation, production levels, dividend payment, payment on purchases, receiving, interest, and others were considered in making decisions with respect to financial strategy for Sengupta Fibres Ltd.
A variety of microeconomic and macroeconomic considerations were involved in the decision-making required to chart the financial course of Sengupta Fibres Ltd. These included a consideration of labor costs, inflation, and raw materials purchase. So, too, loans, dividend payments, and principal and interest payments were taken into consideration. All of these considerations enabled better decision-making because they revealed some patterns that enable management to draw more insight into how best to modify and implement effective strategies. For example, a consideration of all memos dealing with proposed courses of action led to changed strategies with respect to payment on purchases, raw material purchasing, and inventory restructuring. The Just-In-Time inventory method was revealed from such considerations to be the best decision for lowering costs, increasing cash flow, and increasing efficiency. By taking into the decision-making process other pieces of information, such as the contrast in labor costs and efficiency of using a level production strategy, better overall strategies were arrived at that save money and increase efficiency.
The Financial Forecast was based on six major decision-making criteria, including gross sales, raw materials inventory, JIT inventory, production methods, dividend payout, and loan cleanups. By considering the impact of all of these factors in the decision-making process, executives were able to devise proposals that will have a significant positive impact on Sengupta Fibres Ltd. financial standing. Likewise, in performing the ratio an...