ITEM METADATA RECORD
Title: Improving the efficiency of the purchasing process using total cost of ownership information : The case of heating electrodes at Cockerill Sambre S.A
Authors: Degraeve, Zeger
Roodhooft, Filip
Issue Date: 1997
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 09716 pages:1-31
Abstract: Improving the efficiency of the purchasing process provides important opportunities to increase a firm's profitability. In this paper we introduce a mathematical programming model that uses total cost of ownership information to simultaneously select suppliers and determine order quantities over a multi-period time horizon. The total cost of ownership quantifies all costs associated with the purchasing process and is based on the activities and cost drivers determined by an activity based costing system. Our approach is motivated by the purchasing problem of heating electrodes at Cockerill Sambre S.A. a Belgian multinational steel producer. In this case quality issues account for more than 70 % of the total cost of ownership making the quality of a supplier a critical success factor in the vendor selection process.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Accountancy, Leuven

Files in This Item:
File Description Status SizeFormat
OR_9716.pdf Published 397KbAdobe PDFView/Open

 


All items in Lirias are protected by copyright, with all rights reserved.