Which of the following is NOT a consideration for total cost of ownership?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Prepare for the ASU SCM355 Supply Management Exam 1 with practice quizzes. Test your knowledge with flashcards and multiple choice questions, complete with detailed explanations. Master your exam!

The concept of total cost of ownership (TCO) emphasizes a comprehensive approach to evaluating the costs associated with acquiring and using a product or service over its entire lifecycle. This includes not only the initial purchase price but also other factors that can significantly impact overall costs, such as quality levels, service warranties, maintenance costs, and operational expenses.

The number of employees in the supply department, while it may impact operational efficiency, is not directly related to the TCO of a specific product or service. Instead, TCO calculations focus on tangible factors that directly affect the costs incurred from purchasing and using an item. Therefore, factors like quality levels, purchase price, and service warranties are essential components of TCO as they influence the durability, reliability, and long-term value of the procurement.

In contrast, the number of personnel in the supply department is more relevant to organizational efficiency and resource allocation rather than the cost modeling of specific assets or supplies. Thus, it is not considered when determining the total cost of ownership.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy