Total cost of ownership models: an exploratory study.(purchasing)(Statistical Data Included) From: Journal of Supply Chain Management | Date: June 22, 2002| Author: Ferrin, Bruce G.; Plank, Richard E. | COPYRIGHT 2002 National Association of Purchasing Management, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

SUMMARY

This research examines organizational purchasing models focusing on the use of total cost of ownership (TCO) to value purchase opportunities. The research presents evidence that leading-edge companies actually use such models. This exploratory study provides, for the first time, data on the nature, and use, of the cost drivers on which organizations base their TCO computations. The study suggests a generic model of total cost of ownership is not appropriate. However, the fi...

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