Question: You have been tasked with understanding the relationship between sales orders and purchase orders to acquire raw materials. Currently, production sites are individually responsible for
You have been tasked with understanding the relationship between sales orders and purchase orders to acquire raw materials. Currently, production sites are individually responsible for all purchases. The benefit of this decentralized organization is that the sites can quickly respond to changes in production demand. The downside is that sourcing for purchases is not coordinated between the sites. There is a concern that some sites' purchasing departments have been buyingmore raw materials than needed.
Your manager has asked you to analyze purchases compared to sales. You prepared the following analyses.
Ortho Inc.
Sales Orders Vs Purchase Orders
tableOrtho Inc.Correlation between Purchases and Sales,Purchase OrdersPurchase Orders,Sales Orders,
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How do these analyses help evaluate if the sites are purchasing more raw materials than they need?
List some additional analyses that would be useful.
Create additional analyses and interpret your results.
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