Figure 7.
A diagram illustrating the causal relationships between financial credit rates, raw material ordering rates, and goods in transit, including feedback loops and components such as minimum order quantity and supply lead time.This flowchart depicts the interactions and relationships among various components related to raw material ordering and financial credit processes. It includes elements like the minimum order quantity, raw material unit price, and required financial credit rate. The diagram features arrows showing the flow of information, indicating how these elements affect one another, with components such as total financial credit backlog and financial credit backlog payment rate. There are feedback loops represented by circular arrows around goods in transit and raw material final ordering rate, suggesting complex dynamic relationships within the system.

Fulfilment of purchase orders causal loop

Source: Authors’ own work

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