eng
About   |   Newsletter
Demand & Supply Chain Management Evolution


Supply Chain Glossary

Glossary  >  A  >  Average Rate of Return  


 

Average Rate of Return


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

Average Rate of Return [or Accounting Rate of Return] is one of the ratios sometimes used in investment appraisal.  It calculates the returns from an investment over the period of the investment expressed as a percentage of the original sum invested.  As an example, a new machine costs $100,000 and generates net cash flow of $50,000 each year over the four years of its expected life.  The total return from the machine is $200,000 minus the original investment of $100,000 making a net return of $100,000.  To calculate the net return per annum, $100,000 is divided by four (being the expected life of the machine in years) that equates to $25,000 per annum.  Expressed as a percentage of the capital cost, the average rate of return is 25%. As it does not take into account the time value of money, Net Present Value [NPV] is more commonly used.  See also Net Present Value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Job Opportunities
 
Material Handler
     
     Latham, New York  -  PERM  -  Philips

Procurement Engineer, Philips Healthcare, (Cambridge,MA.)
     
     Cambridge, Massachusetts  -  PERM  -  Philips

Sr Manufacturing Mechanic/ Sr Craftsworker ( 3rd Shift)
     
     New Jersey - Branchburg  -  PERM  -  Roche

Quality Assurance, Manufacturing Team Lead
     
     Carlsbad, California  -  PERM  -  Philips

Senior Supply Planner, Medical Consumables and Sensors
     
     Cambridge, Massachusetts  -  PERM  -  Philips

Logistics Coordinator
     
     Gainesville, Florida  -  PERM  -  Philips

Logistics Supervisor (Second shift)
     
     Carlsbad, California  -  PERM  -  Philips

Manufacturing Engineer, Philips Healthcare, (Latham, NY.)
     
     Latham, New York  -  PERM  -  Philips

Warehouse Manager
     
     Winston Salem, NC  -  PERM  -  SCM Talent Group

CAR-T Site Supply Chain Manager
     
     Warren - NJ  -  PERM  -  Bristol-Myers Squibb

Manager, Global Supply Chain Planner
     
     United States  -  PERM  -  Bristol-Myers Squibb

Supervisor, CAR-T Warehouse Operations
     
     United States  -  PERM  -  Bristol-Myers Squibb

Order Management Specialist
     
     Nashville, Tennessee  -  PERM  -  Philips

Manufacturing Engineer, Philips Healthcare, (Latham, NY.)
     
     Latham, New York  -  PERM  -  Philips

Senior Procurement Engineer
     
     Bothell, Washington  -  PERM  -  Philips



 
           Circular Economy     Industry 4.0     Blockchain 

     Internet of Things     Omni Channel 


Join us on


News & Trends
 

Last update 2 Jul 2020
Record rise in manufacturing PMI amid looser COVID-19 restrictions
   Source: Markit US Manufacturing PMI   -  IHS Markit
United States 


Chemicals & Pharmaceuticals

Maximum safety and reliability and reducing the costs for our customers at the same time: we are able to offer the chemical industry an extensive range of chemical logistics services that hardly any other logistics specialist can match. It is our goal to harmonise our services with your specifications in s...


How Sustainability Will Fundamentally Change Your Supply Chain

Customers today don’t just expect instant gratification with great service. They expect companies to provide this seamless experience with a minimal carbon footprint. While this past decade has elevated climate ...


Education
 

Local & Regional Agenda
 


Resources
 
Erema: Gaining a competitive edge through preferential exports

Erema, an Austrian manufacturer of recycling systems, uses AEB software to accelerate the proper classification of its components, manage supplier’s declarations, and ensure compliance in its exports. Erema ship...

Reshaping The Interface Between Marketing And Operations In Globalizing Furniture Supply Chains

Over the past few decades, international fragmentation of production and offshore outsourcing have remarkably altered the organization of Western supply chains. Particularly in low-tech, manufacturing sectors, the fast s...


International Agenda