Total Cost of Ownership - An Introduction to Whole-of-Life Costing
Total Cost of Ownership - An Introduction to Whole-of-Life Costing Abstract This paper contributes to the field of buying and logistics theory practise in a variety of ways, including demonstrating the connection between TCO and Purchasing expenses are emphasised as a critical component of total supply chain costs when analysing total supply chain costs. Any link in the supply chain, as well as overall supply chain costs, may be better understood and evaluated using the concepts espoused here. Second, by connecting TCO analysis to transaction cost analysis in the economic literature, this paper provides a theoretical foundation for TCO analysis. Third, distinctions between TCO and other buying frameworks are investigated, allowing for a better understanding of TCO's advantages and drawbacks. Third, based on companies that utilise TCO, various TCO approaches (cost- and value-based) are compared. TCO models are shown as examples. The advantages of adopting individual TCO models over ...