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PO Cycle Resource Cost
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Activity Type
Average time (Mins)
CostResource typeAnnual CostPer hour costPer minute cost
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Requisition creation20$16.1Non Manager$87,750$48$0.8
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Manager approval5$6.2Buyer$87,750$48$0.8
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Executive approval5$12.4Manager $135,000$74$1.2
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Purchasing review5$4.0Executive $270,000$148$2.5
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Manual Po creation15$12.1
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PO changes15$12.1
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Total PO Cost$62.7
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Annual PO count10,000
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Annual PO cost$627,404
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Notes on how to use this calculator
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1. Please make a local copy.

2. The requisition creation time is an average time.Not every requisition takes twenty minutes to create but there are certain requisitions which takes more time.
The time also includes the time user needs to gather the information and type in the requisition.

3. Cost of resources is by different type of resources who are involved in the process. You can work with your finance team to get more details about the cost.
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