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
 
Shipping and Receiving Coordinator
     
     Aurora  -  PERM  -  Michael Page

Strategic Sourcing Manager - Direct Materials
     
     Vernon Hills  -  PERM  -  Michael Page

Senior Inventory Analyst
     
     Hopkinton  -  PERM  -  Michael Page

Category Sourcing Manager - M&A Procurement
     
     Nashville, Tennessee  -  PERM  -  Philips

Category Manager - Indirect Procurement
     
     Racine  -  PERM  -  Michael Page

Residential Purchasing Manager - Austin, TX
     
     Austin  -  PERM  -  Michael Page

Inventory Manager - MRO - Chicago
     
     Chicago  -  PERM  -  Michael Page

Director, Procurement Engineering
     
     Carlsbad, California  -  PERM  -  Philips

Logistics Coordinator, Operations Coordinator, Inventory Coordinator
     
     New York  -  PERM  -  Michael Page

Supply Chain Coordinator
     
     Manhattan  -  PERM  -  Michael Page

Transportation and Logistics Manager, Philips Healthcare, (Lockbourne, OH.)
     
     Lockbourne, Ohio  -  PERM  -  Philips

Quality Manufacturing Engineer
     
     Murrysville, Pennsylvania  -  PERM  -  Philips

Order Management Logistics Specialist
     
     Nashville, Tennessee  -  PERM  -  Philips

Senior Production Planning and Control Manager Fort Wayne IN (Relo)
     
     Indianapolis  -  PERM  -  Michael Page

Senior Production Planning and Control Manager
     
     Fort Wayne  -  PERM  -  Michael Page

 

Supply chain E-learning



Explore available supply chain e-learning modules by language and academy



News & Trends
 

Last update 10 Sep 2021
Marked improvement in operating conditions amid strong demand conditions
   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...

Unified Logistics: The Need for Agile Resiliency

Someone recently mentioned that “resiliency” seems to be one of my favorite words. As words go, it’s not a bad one to have as your favorite.  The ability to adapt, to quickly recover from disrup...


Education
 

Resources
 
Tudor Rose International increases productivity through integrated SCM platform ASSIST4

Tudor Rose International is Europe’s leading export market management company specialising in building brands around the world. In business for nearly 30 years, the innovative company mastered an ambitious IT mo...

2018 Top Ten Trends in Modern Demand-Driven Manufacturing

With all signals pointing toward a good year, manufacturers have a decision to make. They can enjoy the strong economy while it lasts or look to the future and invest in technologies that will help them build a strong...