- Return on investment commonly referred to as ROI is a profitability ratio that determines how much an investor or a company gets form an investment. In this case, it is calculated through use of net profits form the production process and the cost of investment.
=1,005,000/5,000,000=20.1%
- Just-in-time purchasing advocates zero inventories and stock less production within an organization through just in time purchasing and production. The objective is to purchase goods so that stocks are delivered immediately before the production process starts. As such, the method calls for strong supplier relationships to ensure that the ...
