The Strategic Profit Model can be used to illustrate the impact of supply chain management

on ROA $($Return on Assets$)$ by:

Illustrating how increased promotional activity can improve a company's inventory.

Illustrating how supply chain activities impact the components of the income statement and balance

sheet that lead to the Return on Assets ratio.

Describing different ways to manipulate variables related to a company's accounting philosophy.

Illustrating how variations in Inventory Costs can lead to different values of the cash$-$to$-$cash cycle.