I spoke to a lecturer the other day who said her learners struggle with this topic. It is a little technical, but I like to think that clarifying technical material is a strength of Profex. So I’ve decided to share our coverage of the topic from the Profex L4M5 text (though it crops up in other modules too). Any queries, feel free to ask me.
Of course the numbers are not the whole story. You need to understand the implications for procurement professionals. Stay tuned to this page: in the coming weeks, we’ll be posting some implications and limitations of the technique.
You can download a PDF of the above resource here.