Analysis: The Good By Eliyahu M. Goldratt And Jeff Cox

Introduction
“THE GOAL” by Eliyahu M. Goldratt and Jeff Cox is about Alex Rogo, who’s not only battling family issues at home but as being a manager over a plant, has also noticed that their profits have been declining over the last few months. Alex then was told he had months to help the company to get back on track or the company will shut down. Alex then reunites with an old physics instructor from college names Jonah, who helps him realize his future goals for the company and the measures that need to be implicated, in order to save the company.
Alex and some employees from the company finally get the plant up and running again and all received promotions. In this research paper, I will be going over ten principles from the book that

Without good customer service and keeping your promises, your company would have loyal customers. According to 5 Focusing Steps, “If you’re not yet sold on the idea, consider that a 2 percent increase in customer retention has the same effect as decreasing costs by 10 percent. Not only that, but it costs over six times more to get a new customer than it does to keep one.” Customer satisfaction should be a golden rule of all companies.
For an example, while working for Chick-Fil-A, the managers would not only train the new hirers in their positions, but also train them to say “My Pleasures”. Which shows manners and respect, but also creating a hospitality environment for their customers. Without customers your business wouldn’t be running.
Also, if a customer had a complaint about their food, we would not only apologize for the situation, but also give them complementary coupons to use on their next orders. Being curious to your customers really matters, because it shows that you care and that their business matters to the company. Even having a suggestion boxes for your customers, so that your business can get feed back and know what areas are needing improvement in will also matter as

Which in fact was a great idea, when thinking about the production level of the company. But in all actuality instead of helping the company, it created large amounts of inventory back up and slowed down the speed necessary to accommodate the throughput offered by the automated equipment invested for the company.
Managing Excessive Inventory
For a company to have an excessive amount of inventory usually cause by poor managing skills. This will also result to not planning to keep track the life cycle of their products, forecasting stock demands, and also replenishing the inventory that’s out of stock. Excessive amount of inventory usually means there is a lost of profit being made someone. Where it is the consumers not purchasing the goods anymore or your company is hurting from not selling the goods and letting the inventory stack up.
Even though excessive stock could be an advantage when it comes to the different seasons or could even mean there is a higher service rate, also a demand for that product. Could also be consider as a safety stock, which could be consider for having that leeway of products for your busiest seasons like the holidays. Without a plan when it comes down to inventory, you might face a financial burden if you don’t keep track of what’s happening inside of your business.