Besides calculating the return on investment of different inputs, or ROI, another approach is to calculate the Cost of Poor Quality (COPQ) - the cost of defects in the current process, product or service in contrast to the calculated cost of the existing process using a weighted risk of potential failures. This is a kind of modified Six Sigma risk management strategy to determine which process has the lowest risk of a potential failure. (Sharma, 2004) This strategy would mean calculating the risk of the potential failures...

The risks of having a lower inventory base to draw from in comparison to the competition's inventory stock.
Works Cited

Sharma, Pankaj. (2004) "Calculating COPQ Using Weighted Risk of Potential Failures." Retrieved 10 Feb 2005 at http://www.isixsigma.com/library/content/c040510a.asp

Worstell, Jeffrey. (Mar 2002) "Identifying, Justifying, Prioritizing." CEP Magazine. Volume March 2002: 72-79. Retrieved 10 Feb 2005 at http://www.cepmagazine.org/pdf/030272.pdf