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Which is better and generally accepted criterion for comparing, evaluating bids for capital equipment: Direct purchase price Or Life Cycle Cost?

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Question added by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner
Date Posted: 2014/09/30
Imran Ahmad
by Imran Ahmad , Sales Manager , Bahrain Steel Company

Life Cycle costs is prominent factor. Considering which little bit of variation in direct price could be acceptable subjected to management decision. 

Mohd Mustaqeem
by Mohd Mustaqeem , Executive Secretary , SAUDI PAN KINGDOM CO

I agree with Mr. Imran

Jahabar Sadiq Ifthikar
by Jahabar Sadiq Ifthikar , Procurement Manager , Compass PMC

 

Life cycle costing is most frequently associated with environmental purchasing, but in fact has been used successfully in capital equipment acquisitions for many years. LCC is a means of evaluating performance “from the cradle to the grave” and provides a measure of the “total cost of acquisition” or the “total cost of ownership”.

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