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Supply Chain > Total Cost Analysis
The following information is about Total Cost Analysis.
Total Cost Analysis Defined
A decision-making approach that considers minimization of total costs and recognizes the inter-relationship among system variables, such as transportation, warehousing, inventory, and customer service.
Total Cost Curve:
1) In cost-volume-profit (break-even) analysis, the total cost curve is composed of total fixed and variable costs per unit multiplied by the number of units provided. Break-even quantity occurs where the total cost curve and total sales revenue curve intersect.
2) In inventory theory, the total cost curve for an inventory item is the sum of the costs of acquiring and carrying the item.
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Off-site Total Cost Analysis Links, User Submitted
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Wed Jun 20
- A Total Cost of Ownership Analysis' template - Strategic Sourcing | Europe: Total Cost of Ownership Analysis' template
Tue Jan 16
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