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Home » Cost Modeling Can Dramatically Reduce Procurement Expense

Cost Modeling Can Dramatically Reduce Procurement Expense

November 30, 2012
Inside Supply Management

Cost modeling is the analysis of resource data "” direct labor; direct material; indirect costs; selling, general and administrative costs; R&D costs; and profit "” to understand the projected or true cost of products and services produced or purchased by an organization.

There are many types of cost models, both external and internal. External cost models include industry-specific projected cost models for both products and services, and the total cost of ownership model. Internal cost models include break-even cost models, make-or-buy cost models, internal projected cost models, crossover chart models and cost-of-quality models.

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Keywords supply chain management IT, value chain IT, supply chain solutions, cost analytics

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Technology Forecasting & Demand Planning Sourcing/Procurement/SRM Business Strategy Alignment Global Supply Chain Management Quality & Metrics Pharmaceutical/Biotech
KEYWORDS Business Strategy Alignment cost analytics Forecasting & Demand Planning Global Supply Chain Management Pharmaceutical/Biotech Quality & Metrics Sourcing/Procurement/SCM Supply Chain Analysis & Consulting supply chain management IT supply chain solutions Technology value chain IT
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