Title :
Dynamic Model Based on the Theory of Purchasing Decisions of the Full Life Cycle Costs
Author_Institution :
Bus. Sch., Hohai Univ., Nanjing, China
Abstract :
Procurement companies have different risk preferences based on the LCC perspective, according to this risk appetite which can build buyers expecting the functional relationship between the rate of return on their risk appetite. As the basis for equipment procurement project decision-making model Analysis results show that the equipment procurement corporate strategic decision-making should not only pay close attention to the external environment of the organization, good macro and industry´s economic forecast, but also optimize procurement decisions, so that corporate profits and the value of the procurement is maximized. Equipment procurement model which included the increase in equipment pro-curement scientific and rational decision-making and risk consideration has certain theoretical significance of the cur-rent equipment market environment so that enterprises can be participated in the purchasing decisions of our equipment procurement practice activities.
Keywords :
decision making; economic forecasting; equipment evaluation; life cycle costing; procurement; purchasing; risk management; strategic planning; LCC perspective; dynamic model; equipment procurement project decision-making model analysis; equipment procurement rational decision making; equipment procurement scientific decision making; full life cycle costs; industry economic forecast; procurement companies; procurement decision optimisation; purchasing decision theory; risk appetite; risk preferences; Decision making; Economic indicators; Procurement; Production; Sensitivity analysis; Uncertainty; costs; model; procurement; whole life cycle;
Conference_Titel :
Computational and Information Sciences (ICCIS), 2013 Fifth International Conference on
Conference_Location :
Shiyang
DOI :
10.1109/ICCIS.2013.95