The supplier performance index (SPI)equals (____ plus ____)divided by ____.
A) total purchases....nonperformance costs....total purchases
B) nonperformance costs....total purchases....nonperformance costs
C) total purchases....appraisal costs....external failure costs
D) external failure costs....internal failure costs....total purchases
E) failure costs....appraisal costs....prevention costs

Question

Quizplus · Accepted Answer

The Supplier Performance Index (SPI) is calculated by adding total purchases and nonperformance costs, then dividing by total purchases.

The Supplier Performance Index (SPI)equals (____ Plus ____)Divided by ____

The Supplier Performance Index (SPI)equals ( Plus )Divided by