TY  - JOUR
AB  - Total cost of ownership is a methodology and philosophy which looks
beyond the price of a purchase to include many other purchaserelated
costs. This approach has become increasingly important as organizations
look for ways to better understand and manage their costs. Examines case
studies of 11 firms which use total cost of ownership concepts in
purchasing. Based on the case study data and the literature, barriers
and benefits associated with the total cost of ownership approach are
discussed. The total cost of ownership models used by the case study
firms are classified by type as dollar‐based or value‐based, and an
example of each is shown. The total cost of ownership models are then
further classified by their primary usage: supplier selection or
supplier evaluation. This cross classification reveals a strong
relationship between model type and model usage. Concludes with a
comparison of the models, recommendations for practitioners and a
discussion of future research directions.
VL  - 25
IS  - 8
SN  - 0960-0035
DO  - 10.1108/09600039510099928
UR  - https://doi.org/10.1108/09600039510099928
AU  - Ellram Lisa M.
PY  - 1995
Y1  - 1995/01/01
TI  - Total cost of ownership: an analysis approach for purchasing
T2  - International Journal of Physical Distribution & Logistics Management
PB  - MCB UP Ltd
SP  - 4
EP  - 23
Y2  - 2024/04/25
ER  -