Total Cost of Ownership: Elements and Implementation
Author:
- 1 September 1993
- journal article
- Published by Wiley in International Journal of Purchasing and Materials Management
- Vol. 29 (3) , 2-11
Abstract
While total cost of ownership concepts are widely discussed, in practice most firms do not utilize the total cost concept in purchasing. This article uses findings from studies of nine firms that use total cost of ownership to define the total cost of ownership concept and benefits. A framework for classifying cost elements is developed. The article concludes with a discussion of key total cost of ownership implementation issues, and explores two approaches to implementation of total cost of ownership concepts in purchasing.Keywords
This publication has 4 references indexed in Scilit:
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- Global outsourcing: Have U.S. managers thrown the baby out with the bath water?Business Horizons, 1992
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