Take the annual report of a listed company and determine the procurement-to-sales ratio. Using the DuPont chart,

Question:

Take the annual report of a listed company and determine the procurement-to-sales ratio. Using the DuPont chart, calculate the effect on RONA of a 2 and 5 per cent saving on the procurement spend. Do the same for a 2 and 5 per cent increase in the procurement spend, ceteris paribus. Describe the elements in the DuPont chart that are directly or indirectly affected by procurement strategies.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Procurement And Supply Chain Management

ISBN: 102049

8th Edition

Authors: Arjan Van Weele , Frank Rozemeijer

Question Posted: