Supply should obtain needed goods and services at the lowest total cost of ownership meaning that other cost factors-such as quality levels, after-sales service, warranties, inventory and spare parts requirements, and downtime-must be considered even though in the long term these factors seldom have a cost impact greater than the original purchase price.

Question

Quizplus · Accepted Answer

In the long term, factors like quality, service, and downtime can have a significant cost impact, sometimes exceeding the original purchase price.

Supply Should Obtain Needed Goods and Services at the Lowest