Title: Applying total cost of ownership for strategic procurement : three industrial case studies
Authors: Degraeve, Zeger
Labro, Eva
Roodhooft, Filip
Issue Date: 2000
Publisher: K.U.Leuven - Departement toegepaste economische wetenschappen
Series Title: DTEW Research Report 0036 pages:1-34
Abstract: In this paper we elaborate on a Total Cost of Ownership supplier selection methodology that we have constructed using three real life case studies which are presented in this article. Analysing the value chain of the firm, data on the costs generated by the purchasing policy and on supplier performance are collected using Activity Based Costing (ABC). Since a spreadsheet cannot encompass all these costs, let alone optimise the supplier selection and inventory management policy, a mathematical programming model is used. Possible savings of between 6 and 14% are obtained for the three cases.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Accountancy, Leuven

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