| Article ID: | iaor19921230 |
| Country: | United Kingdom |
| Volume: | 42 |
| Issue: | 11 |
| Start Page Number: | 949 |
| End Page Number: | 958 |
| Publication Date: | Nov 1991 |
| Journal: | Journal of the Operational Research Society |
| Authors: | Lam M. Natalie, Ng Kevin Y.K. |
| Keywords: | quality & reliability |
The economic trade-off analysis between centralized and decentralized purchasing within the Canadian Forces is examined. A break-even analysis model for slow moving items has been developed. A simple isocost equation has been established relating the difference in item purchase cost, the freight tariff and the quality related costs. The case of the two purchasing modes with and without quality inspections will also be highlighted.