Figure 6.
A diagram depicting various factors affecting raw material management, including ordering rates and inventory levels, with directional arrows indicating causal relationships between elements.This flowchart illustrates the interplay of various components involved in raw material management. Central to the diagram are factors such as Raw-Material Ordering Rate, Minimum Order Quantity, and Financial Credit Backlog Payment Rate. Arrows indicate the relationships and directional influences among these elements, showing how changes in one factor can affect others. For instance, the flow entries for Raw-Material Stock levels and Delivery Rates suggest influences on inventory and production capabilities.

Purchasing orders and supplying raw materials causal loop

Source: Authors’ own work

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