Return on Investment (ROI) the TOC Way
Periodic T, I and OE are used in order to assess the ROI of the company through the use of the formula: ROI=NP/I = (T-OE)/I When judging the incremental impact of a decision that contains additional investment the marginal ROI is calculated through the formula: Marginal ROI = ∆NP/∆I = (∆T-∆OE)/∆I Source: Oded Cohen […]