Question: Analyse the sensitivity of the models to differences in volume of orders and values of purchases (Table 7.4) and the balance between traditional purchasing costs

Analyse the sensitivity of the models to differences in volume of orders and values of purchases (Table 7.4) and the balance between traditional purchasing costs and other costs such as salaries and capital by using the parameters (Table 7.5). Explain to the managers the typical characteristics of a company that will make significant changes to profitability from introducing e-procurement.

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