Description
1.Identify the elements of the Total Cost of Procurement. What role do these elements of logistics play in cost process?
(350 Words)
2.Evaluate and compare the pros and cons of the Collaborative Planning Forecasting Replenishment system designed by Wal-Mart and Warner Lambert.
(350 Words)
Explanation & Answer
Please you these two document because have put the questions separately
Running Head: TOTAL COST OF PROCUREMENT
Total Cost Procurement
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Course
Tutor
Date
1
TOTAL COST PROCUREMENT
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Total Cost Procurement
Question 1
Introduction
In procurement circles, a product’s total cost refers to the expenditure associated with its
acquisition, use and maintenance from production to sale. Theoretically, the total cost of
procurement allows for companies to quantify and measure the value of goods and products
hence provide an accurate picture of their expenditures. In practice, however, most organizations
are unable to implement total cost-based procurement due to the lack of precise information and
unavailability of reporting systems to support the processes associated with total product costing.
Certain elements characterize TCP in the acquisition, and the major ones are Quality, Service,
Delivery and Price (Noorbakhsh, et al., 2019).
Elements of Total Cost Procurement in the Cost Process
Process costing is an accounting concept that explains the collection and assignment of
manufacturing costs to the units produced. The costing process is used for industries that produce
goods en masse such as food processing and the oil industry, where a barrel of oil could produce
several gallons of petro...
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