Suppose a chief supply chain officer takes the total of all purchasing managers' annual salaries and divides this number by the number purchase orders placed in a year.This calculation would provide insight into what kind of inventory cost?

Question

Quizplus · Accepted Answer

Dividing the total of all purchasing managers' annual salaries by the number of purchase orders gives the average cost per purchase order placed, which would be an insight into ordering costs.

Suppose a Chief Supply Chain Officer Takes the Total of All