scholarly journals The Impact of Using the Total Cost of Ownership (TCO) Account for a Reusable Wooden Flat Pallet in Its Operational Phase on Respecting the Principles of Sustainable Development

Resources ◽  
2021 ◽  
Vol 10 (11) ◽  
pp. 116
Author(s):  
Mariusz Jedliński ◽  
Mariusz Sowa
Keyword(s):  
Sustainable Development ◽  
Supply Chains ◽  
Essential Element ◽  
Basic Research ◽  
Primary Data ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Operational Life ◽  
The Impact

Despite the commonly observed trend towards mechanization and automation of operational processes, the potential benefits of wooden pallets as an essential element of the infrastructure of logistic processes are often overlooked in considerations related to sustainable development. Aspects that are mentioned more often include the very idea of the economy itself (circular economy), characteristics of logistics (green), features of the supply chain itself (sustainable) or expectations towards transport (ecological). The authors believe that the idea of total cost of ownership (TCO) in relation to wooden pallets can be a key component of holistic thinking in terms of sustainable development. In a situation where in relation to logistics, reasonable expectations for developing sustainable supply chains are made, paying attention to such a common logistic facility, namely a cargo pallet, which is given so little attention in research, is, in the opinion of the authors, absolutely justified. Therefore, the article presents an original approach to the problem of aggregation of all costs that cargo pallets generate in their operational life cycle, using the total cost of ownership (TCO) analysis methodology. The main goal of the article, however, is to show that the total cost of ownership of a pallet (not only owning it) can become an effective tool used to significantly reduce the costs of logistic activity of enterprises (as well as whole supply chains) and support the idea of sustainable development in practice. Using the primary data from questionnaire research, the focus was on considerations that were of identification character (cognitive and explanatory considerations), which are typical for basic research that aims to explain given phenomena. Thus, the presented cognitive process covers two main areas, namely: the general theory of sustainable development and the specificity of wooden pallets as carriers used in goods trading in terms of their total costs of ownership.

Heavy Lifters, India: Towards a Circular Economy Era

2021 ◽  
pp. 097226292110435
Author(s):  
Anupama Prashar
Keyword(s):  
Operations Management ◽  
Circular Economy ◽  
Business Models ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Planning And Control ◽  
Cost Of Ownership ◽  
Challenges And Opportunities ◽  
And Control ◽  
The Impact

The case helps students to understand the emerging concept of linear and circular economies. It facilitates to examine the implications of circular business models such as remanufacturing on operations management decisions. It also introduces them to the concept of total cost of ownership and impact of remanufacturing on reducing total cost of ownership. The cases help students to evaluate the challenges and opportunities of remanufacturing business in emerging economy like India. This case is among the first few cases on the application of circular economy principles in context of heavy-duty and off-road sector and the impact of these principles on product design and production planning and control decisions.

Multi-Tier Supplier Selection Using Total Cost of Ownership and Data Envelopment Analysis

2020 ◽  
pp. 597-622
Author(s):  
Feras Saleh
Keyword(s):  
Data Envelopment Analysis ◽  
Quality Management ◽  
Supply Chains ◽  
Supplier Selection ◽  
Global Supply Chains ◽  
Data Envelopment ◽  
Total Cost Of Ownership ◽  
Network Dea ◽  
Total Cost ◽  
Cost Of Ownership

Quality management across multiple tiers is vital to minimize cost of quality in global supply chains. In this chapter, the authors address the problem of supplier selection in multi-tier global supply chains with the purpose of overall quality management. A hybrid approach based on total cost of ownership (TCO) and network data envelopment analysis (DEA) is proposed. The TCO looks beyond the quoted cost to cover additional true costs related to the entire purchasing cycle. The cost categories included are quoted price, manufacturing costs, quality costs, design costs, logistics costs, after sales service, and social/environmental costs. Network DEA is used to rank the suppliers based on the TCO cost categories. The advantage of network DEA is its ability to investigate intermediate linkages between different stages of the supply chain. The results of network DEA are efficient suppliers and improvement targets for inefficient suppliers for improving overall quality in global supply chains. A numerical application is provided.

Human Total Cost of Ownership: Measuring the Impact of Human Factors on System Engineering

2008 ◽  
Author(s):  
Robert R. Hoffman ◽  
Wayne Zachary ◽  
John Burns ◽  
Michael Drillings ◽  
Christopher R. Hale ◽  
...  
Keyword(s):  
Human Factors ◽  
System Engineering ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
The Impact

Total cost of ownership as a base of Transneft fleet operation

2020 ◽  
Vol 10 (1) ◽  
pp. 84-95
Author(s):  
Alexander М. Efremov ◽  
◽  
Zufar I. Sadriev ◽  
Vladimir V. Nikitin ◽  
Ivan V. Kalinin ◽  
...  
Keyword(s):  
Cash Flow ◽  
Primary Data ◽  
Total Cost Of Ownership ◽  
Technical Standards ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Heavy Equipment ◽  
Models Comparison ◽  
Long Term Forecasting ◽  
Equipment Lifetime

Total cost of ownership (TCO) accounting is a brand new optimization process aimed at gaining overall investment and maintenance benefit which is being first applied in Transneft to vehicles and heavy equipment. Commonly fleet renewal and model choice decisions are built on outdated technical standards, personal experience or declared properties, however such way cannot provide an objective result in a modern condition of engineering. IT development in vehicles and heavy equipment monitoring allows accumulating primary data on the operation of each technical unit. Transneft has worked out the methodology of AV annual TCO calculating and analysis to describe the procedure and methods of applying the primary data to AV annual TCO calculating, optimal equipment lifetime determination and models comparison. The authors of this paper have developed the methodology based on the identification of primary data correspondence to different intervals of the same model lifetime using a Big data logic and further operating cash flow long-term forecasting for each model. Forecasting process is selected between averaging, linear extrapolation and probabilistic model based on reliability theory methods. AV annual TCO is calculated by applying equivalent annual annuity to the overall lifetime cash flow. Optimal equipment lifetime is calculated in correspondence to the minimum AV annual TCO. Models are compared by the AV annual TCO corresponded to optimal equipment lifetime. AV annual TCO calculating and analysis provides a whole new level of optimal equipment lifetime determination based on overall investment and maintenance benefit and models overall lifetime costs comparison. Thus we have a mathematical founded answer to the questions «How often to renew the fleet?» and «Which model to choose?».

scholarly journals Total cost of ownership in pallet pools management

2019 ◽  
Vol 296 ◽  
pp. 02007
Author(s):  
Mariusz Sowa
Keyword(s):  
Transport Process ◽  
Physical Aging ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Operational Life ◽  
Acquisition Costs ◽  
Operation Phase ◽  
Formal Requirements ◽  
Implementation Stage

Every loading pallet, regardless of the type, in order to be considered safe during the operation phase, must meet certain formal requirements already at the implementation stage. The loading pallet marketed has a certain life span. The life of the pallet depends on many factors. First of all, they are related to the physical and economic aging of the product . Physical aging consists in the fact that the materials from which the products have been made lose their properties, and the economic ones are the result of the emergence of new, better products on the market, better meeting the specific needs of recipients. The operational life of the cargo pallet also depends on the organization of the transport process, branch and means of transport as well as the date of its completion. The concept of calculating the total cost of ownership of a reusable loading pallet in logistic processes, proposed in the article, allows to determine the total costs of its operation. It is based on the idea of Total Cost of Ownership (TCO), which includes total acquisition costs, installation costs, maintenance costs and costs of its disposal over particular time

Innovative Distribution Company: A Total Cost Approach to Understanding Supply Chain Risk

2018 ◽  
pp. 1-9
Author(s):  
Ted Farris ◽  
Ila Manuj
Keyword(s):  
Supply Chains ◽  
Economic Order Quantity ◽  
Purchase Price ◽  
Order Quantity ◽  
Supply Chain Risk ◽  
Total Cost Of Ownership ◽  
Safety Stock ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Distribution Company

This case illustrates the use of the total cost of ownership concept to analyse and compare two supply chains – one international and one domestic. The case provides an opportunity to calculate economic order quantity and safety stock quantities and then combine purchase price, shipping costs, and inventory carrying costs to quantify the differences between the two supply chains.

Total Cost of Ownership Analysis of the Impact of Vehicle Usage on the Economic Viability of Electric Vehicles in India

2020 ◽  
Vol 2674 (11) ◽  
pp. 563-572
Author(s):  
Parveen Kumar ◽  
Subrata Chakrabarty
Keyword(s):  
Electric Vehicles ◽  
Internal Combustion Engines ◽  
Business Models ◽  
Economic Viability ◽  
Transport Sector ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Electric Cars ◽  
Cost Of Ownership ◽  
The Impact

The road transport sector in India is on the cusp of a transition to battery electric vehicles (BEVs) from internal combustion engines (ICEs). Government of India (GoI) has announced several policy measures to push the adoption of electric vehicles (EVs). However, EVs involve a high capital cost but lower operating costs. Therefore, the economics of EVs vis-à-vis ICE vehicles depends on the extent of their daily use. The daily use, in turn, can vary significantly from context to context. In this paper, a model to compare the total cost of ownership (TCO) of an EV with different fuel variants (petrol, diesel, and compressed natural gas [CNG]) of their ICE counterparts is presented. It is found that, on an average, the TCO per km of electric two-wheelers (e-2Ws) and electric three-wheelers (e-3Ws) is less than their ICE counterparts at the typical average daily usage of the vehicles in Indian cities. In the case of hatchback and sedan cars, the TCO per km of electric cars (e-cars) is higher than their ICE counterparts. The TCO per km of electric bus (e-bus) is higher than diesel and CNG buses because of high initial purchase cost. Policymakers need to explore innovative business models and strategy for high vehicle utilization to improve the economic viability of EVs. Efficient planning of charging infrastructure and fast charging options will further help in accelerating the adoption of EVs in India.

Human Total Cost of Ownership: Measuring the Impact of Human Factors on System Engineering

2008 ◽  
Vol 52 (4) ◽  
pp. 202-205
Author(s):  
Robert R. Hoffman ◽  
Wayne Zachary ◽  
John Burns ◽  
Michael Drillings ◽  
Christopher R. Hale ◽  
...  
Keyword(s):  
Human Factors ◽  
System Engineering ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
The Impact
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