 Towards a standardised approach to life cycle cost analysisKlaus Geissdoerfer, Ronald Gleich, Andreas Wald and Jaideep Motwani International Journal of Procurement Management, 2012, vol. 5, issue 3, 253-272 Abstract: The rising significance of indirect costs attracts a greater prominence to total cost considerations in purchasing decisions for capital goods. Purchasing decisions made on the basis of a life cycle cost analysis include both, direct costs and indirect costs accruing over the entire lifespan. Existing models for life cycle cost analysis differ significantly from each other as they have been developed mainly for specific applications. A wider use of these techniques depends on the availability of standardised models which can easily be adapted to specific industries. We derive the requirements for the standardisation of life cycle cost analysis models from the existing literature. On this basis, we develop a standardised model with a modular structure. Due to its flexible structure, the model can be adopted to the needs of different industries. Keywords: strategic purchasing; strategic cost management; total costs; ownership; life cycle costing; cost analysis; indirect costs; purchasing decisions; capital goods; direct costs; accrued costs; standardised models; standardisation; modular structures; flexible structures; industry needs; procurement management. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpman:v:5:y:2012:i:3:p:253-272 Access Statistics for this article More articles in International Journal of Procurement Management from Inderscience Enterprises Ltd |
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