A METHOD OF THE MINIMIZING OF THE TOTAL ACQUISITIONS COST WITH THE INCREASING VARIABLE DEMAND

Eleonora Ionela Focsan and Vasile Cristian Ioachim Miron
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Eleonora Ionela Focsan: UNIVERSITY „1 DECEMBRIE 1918” OF ALBA IULIA, ROMANIA
Vasile Cristian Ioachim Miron: UNIVERSITY „1 DECEMBRIE 1918” OF ALBA IULIA, ROMANIA

Annals - Economy Series, 2015, vol. 6, 209-215

Abstract: Over time, mankind has tried to find different ways of costs reduction. This subject which we are facing more often nowadays, has been detailed studied, without reaching a general model, and also efficient, regarding the costs reduction. Costs reduction entails a number of benefits over the entity, the most important being: increase revenue and default to the profit, increase productivity, a higher level of services / products offered to clients, and last but not least, the risk mitigation of the economic deficit. Therefore, each entity search different modes to obtain most benefits, for the company to succeed in a competitive market. This article supports the companies, trying to make known a new way of minimizing the total cost of acquisitions, by presenting some hypotheses about the increasing variable demand, proving them, and development of formulas for reducing the costs. The hypotheses presented in the model described below, can be maximally exploited to obtain new models of reducing the total cost, according to the modes of the purchase of entities which approach it.

Keywords: inventories; stock management; increasing variable demand; total acquisition cost; minimizing costs (search for similar items in EconPapers)
Date: 2015
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