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Monday, February 06, 2012
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REM Associates of Princeton, Inc.
PO Box 7345
Princeton, NJ 08543-7345
Phone: 609.275.4444
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Total Ownership Cost
Author :: Robert Murray Jr.
Date :: Thu 04/16/2009 @ 02:16
Buyers often have to make decisions on price breaks or quantity discounts in order to purchase products for resale or manufacturing at the best possible price; but what is the best price? The lowest actual unit cost is the best price, but is it the lowest Ownership Cost for your company? The quantity purchased has to be held in inventory, handled by your labor force, paid for, and will take up precious space in your warehouse. What does this cost? The concept of Total Ownership Cost will help us understand the real cost of inventory.
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