Purchasing price assessment of leverage items: A Data Envelopment Analysis approach

Franco Visani and Filippo Boccali

International Journal of Production Economics, 2020, vol. 223, issue C

Abstract: In the Kraljic Portfolio Matrix (KPM), ‘leverage’ items are purchases with a strong financial impact but limited associated risk. For these items, the priority for the buyer is to exploit the full purchasing potential, purchasing the items with the lowest price compared to their value attributes, i.e. the features appreciated by the customer. Despite the financial importance of such purchases, practical approaches able to support buyers in assessing their purchasing prices in a value-based perspective are still lacking.

Keywords: Leverage items; Purchasing price; Data envelopment analysis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:223:y:2020:i:c:s0925527319303494

DOI: 10.1016/j.ijpe.2019.107521

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