[英语论文精品] trade-offs between service level and cost– a strategic perspectic《客户服务水平与成本的战略平衡》

毕业论文TRADEOFFSBETWEENSERVICELEVELANDCOSTASTRATEGICPERSPECTIVE学院外国语学院专业姓名指导老师英语学号职称讲师A2A0A4A5A6A7A7A1A3A8A9A9A9A10A11A12A12A13A14A15A16A17A18A19A20IXXX毕业论文诚信承诺书本人郑重承诺我所呈交的毕业论文TRADEOFFSBETWEENSERVICELEVELANDCOSTASTRATEGICPERSPECTIC客户服务水平与成本的战略平衡是在指导教师的指导下，独立开展研究取得的成果，文中引用他人的观点和材料，均在文后按顺序列出其参考文献，论文使用的数据真实可靠。承诺人签名日期年月日A9A9A9A10A11A12A12A13A14A15A16A17A18A19A20ITRADEOFFSBETWEENSERVICELEVELANDCOSTASTRATEGICPERSPECTIVEABSTRACTTHEIMPORTANCEOFCUSTOMERSERVICECANNOTBEOVEREMPHASIZEDATYPICALSUPPLYCHAINMANAGEMENT（SCMCHALLENGEISTOSTRIKETHERIGHTBALANCEOFTRANSPORTATION,PROCESSANDINVENTORYPOLICIESONLYTHEBALANCECANLEADUSTOTHETOPGOALOFPROVIDINGHIGHERCUSTOMERSERVICELEVELHOWEVER,INTHEPRACTICALPROCESS,THESIGNIFICANTLOGISTICCOSTSCONFLICTWITHHIGHERCUSTOMERSERVICELEVELLOGISTICSCUSTOMERSERVICEEXPECTATIONSAREINCREASINGCONSUMERSAREEXPECTINGTHATPRODUCTSANDSERVICESCANBEMADEAVAILABLEININCREASINGLYSHORTERTIMEINADDITION,IMPROVEDINFORMATIONSYSTEMSANDFLEXIBLEMANUFACTURINGPROCESSHAVELEDTHEMARKETPLACETOWARDMASSCUSTOMIZATIONONTHEOTHERHAND,TODAYSLOGISTICSCOSTSARESIGNIFICANTACCORDINGTOTHEINTERNATIONALMONETARYFUNDIMF,LOGISTICSCOSTSAVERAGEABOUT12PERCENTOFTHEWORLDSGROSSDOMESTICPRODUCTOVERTHELASTDECADE,PHYSICALDISTRIBUTIONCOSTSHAVERANGEDBETWEEN7PERCENTAND9PERCENTOFSALESATTHESAMETIME,THEREMAYBEATRENDOFINCREASINGCOSTSFORINDIVIDUALFIRMSTHISTHESISANALYSESTHETRADEOFFSBETWEENCUSTOMERSERVICEANDLOGISTICCOST,ANDHOWTOREALIZEHIGHERCUSTOMERSERVICELEVELTHEREAREMANYTHINGSWECANDOTHROUGHLOGISTICPROCESSINCLUDINGTRANSPORTATIONANDINVENTORYFORHIGHERCUSTOMERSERVICELEVELRATHERTHANCONSUMERHAVINGTOACCEPTTHE“ONESIZEFITSALL“PHILOSOPHYINTHEIRPURCHASES,SUPPLIERSAREINCREASINGLYOFFERINGPRODUCTSTHATMEETINDIVIDUALCUSTOMERNEEDSTHEINTERNET,JUSTINTIMEOPERATINGPROCEDURES,ANDCONTINUOUSREPLENISHMENTOFINVENTORIESHAVEALLCONTRIBUTEDTOCUSTOMERSEXPECTINGRAPIDPROCESSINGOFTHEIRREQUESTS,QUICKDELIVERY,ANDAHIGHDEGREEOFPRODUCTAVAILABILITYVALUEISADDEDBYMINIMIZINGLOGISTICCOSTSANDBYPASSINGTHEBENEFITSONTOCUSTOMERSANDTOTHEFIRMSSHAREHOLDERSKEYWORDSCUSTOMERSERVICELEVELCOSTTRADEOFFSUPPLYCHAINMANAGEMENT（SCM）LOGISTICSA21A21A21A22A23A24A24A25A26A27A28A29A30A31A32II客户服务水平与成本的战略平衡摘要服务水平的重要意义毋容置疑。如何在运输、加工过程以及库存这三者之间达到最优化的平衡是物流供应链管理当中的一个典型难题。而这个最优化平衡点又是我们实现提高客户服务水平与能力的关键所在。在实际操作中，显著的物流成本与更高的服务水平总是互相矛盾的两个因素。客户对物流服务的期望值不断攀升。顾客们希望商家能够在更短的时间给他们提供产品与服务。此外，优化后的信息系统以及生产程序将市场推向大众定G2058型G7053向G2469G4649。而G2490一G7053G19766，现在的物流成本G5852加显著。G7693G6466G3281际G17147G5077G3534G18341G13464G13467的G6265G2590，物流G17165G11004平G3355G2356G1002G11040GDP的12。在过G2447的G2325G5192中，物流成本G2356G6466G19156G2818G20081的7到9之间。与此G2528时，个G1319G1237G1006的物流G17165G11004G1075G2588G990升的G17247G2195。本G7003G2010G7524G1114客户服务水平以及成本的G6124G11065平衡，G16764G16782G1114如何G19489G1314物流成本G5194G1000实现更高的服务水平。在供应链的G2520个G10627G14422中（G2265G6336运输G2656库存G12573）我们G19668要G6925G17839操作以G17873G8726更优G17148的服务。供应商们G17892G9188G3332提供更G3822能G9397G17287不G2528客户G19668G8726的产品，这G7691一G7481客户G4613G2499以G6373G17885G14270G5061G2928G8438的产品而不G5529G15999G17855G6521G2475G2528一产品。客户希望他们的要G8726能够G5483到G5567G17907的G3800理，G16797G8726更短的G17147物G1144G1196时间以及更大的产品G1227值，而互G13864G13605，实时操作程序G2656不断G15929G1817与更G7044的库存G2029G7389G2173G1122G9397G17287客户的这G1135要G8726。G2494G7389G19489G1314物流成本，G1038客户G2656G6249G17176者G1268G17894更大的G1227值，G6177能G14731G5483更大的G2045G9082。关键词客户服务水平，成本，平衡，供应链管理，物流G3A33A33A33A34A35A36A36A37A38A39A40A41A42A43A44IIICONTENTSABSTRACTINENGLISHIABSTRACTINCHINESEII1INTRODUCTION111CUSTOMERSERVICE112CUSTOMERSERVICELEVELANALYSIS2121CUSTOMERSERVICEELEMENTS2122CUSTOMERSERVICEQUALITY313COST414COSTANALYSIS5141COSTESTIMATES5142LOGISTICSCOSTS62TRADEOFFSBETWEENSERVICELEVELANDCOST821COSTBENEFITANALYSIS822COSTCURVE923TRADEOFFANALYSISSERVICELEVELVSCOST1024TAGUCHILOSSFUNCTION10241DEFINITIONOFTAGUCHILOSSFUNCTION11242INTERPRETINGTHECONCEPT11243FORMULA13244TARGETSTABLEANDCAPABLE153TRANSPORTATIONANDTHETRADEOFF1731TRANSPORTATIONANALYSIS1732TRANSPORTATIONCOSTCHARACTERISTICS18A45A45A45A46A47A48A48A49A50A51A52A53A54A55A56IV33BASICTRANSPORTATIONCOSTTRADEOFFS1934FREIGHTMANAGEMENTANDOPERATIONS19341REORGANIZATION19342CHANGESINLOGISTICSNETWORKINFRASTRUCTURE20343APPLICATIONS214INVENTORYANDTHETRADEOFF2341REASONSFORINVENTORIES2342REASONSAGAINSTINVENTORIES2543COSTRELEVENTTOINVENTORYMANAGEMENT2544THEINVENTORYTRADEOFFANALYSIS27441DAYSOFSUPPLY27442CLASSIFICATIONANDPRIORITIZATION28443SERVICELEVELMEASUREMENT28444INVENTORYDECISIONS305CONCLUSION31BIBLIOGRAPHY32ACKNOWLEDGEMENT34G3LISTOFFIGURESFIGURE113FIGURE215FIGURE321FIGURE422FIGURE523FIGURE626G3A45A45A45A46A47A48A48A49A50A51A52A53A54A55A5611INTRODUCTIONFROMACORPORATEWIDEPERSPECTIVE,CUSTOMERSERVICEHASBEENVIEWEDASTHEFIRSTPRIORITYOFANYBUSINESSENTITY,ANDISANESSENTIALINGREDIENTINMARKETINGSTRATEGYONEMAINTASKOFSUPPLYCHAINMANAGEMENTISIMPROVINGCUSTOMERSERVICELEVELATTHESAMETIME,INTHELOGISTICSPROCESS,COSTISTHEKEYFACTORFORSUPPLIERSTOSTRIKETHERIGHTBALANCEOFTRANSPORTATION,PROCESSANDINVENTORYPOLICIESACTUALLY,IMPROVINGCUSTOMERSERVICELEVELANDREDUCINGCOSTARETHETWOBIGGESTDRIVINGFORCESINONEBUSSINESSOPERATIONHOWEVER,SOMETIMESCOSTANDCUSTOMERSERVICELEVELAREONEPAIROFOPPOSITEENDSTHEN,HOWTOACHIEVEBOTHENDSHASBECOMETHEDREAMOFMANYBUSINESSPROFESSIONALSANATTEMPTOANALYZETHEQUALITIESOFBOTHBUSINESSPURPOSESWOULDFACILITATEFUTUREENDEAVORSOFAMBITIOUSBUSINESSNOVICESTHEREAREFIVECHAPTERSINTHISTHESISCHAPTERONEISTHEINTRODUCTIONOFCUSTOMERSERVICELEVELANDCOSTCHAPTERTWOISTHETRADEOFFANALYSISCHAPTERTHREEILLUSTRATESTHETRANSPORTATIONINLOGISTICSCHAPTERFOURANALYSESTHEINVENTORYPOLICIESANDTHELASTCHAPTERISTHECONCLUSION11CUSTOMERSERVICECUSTOMERSERVICEISOFTENSEENASANACTIVITY,PERFORMANCEMEASUREMENTANDAPHILOSOPHYDEFI,2011THATISWHYGENERALLYSPEAKING,ONESINGLECUSTOMERSERVICEDEFINITIONDOESNOTEXISTCUSTOMERSERVICEISTHEPROVISIONOFSERVICETOCUSTOMERSBEFORE,DURINGANDAFTERAPURCHASE“CUSTOMERSERVICEISASERIESOFACTIVITIESDESIGNEDTOENHANCETHELEVELOFCUSTOMERSATISFACTIONTHATIS,THEFEELINGTHATAPRODUCTORSERVICEHASMETTHECUSTOMEREXPECTATION“CUST,2011ITSIMPORTANCEVARIESBYPRODUCT,INDUSTRYANDCUSTOMERDEFECTIVEORBROKENMERCHANDISECANBEEXCHANGED,OFTENONLYWITHARECEIPTANDWITHINASPECIFIEDTIMEFRAMERETAILSTORESWILLOFTENHAVEADESKORCOUNTERDEVOTEDTODEALINGWITHRETURNS,EXCHANGESANDCOMPLAINTS,ORWILLPERFORMRELATEDFUNCTIONSATTHEPOINTOFSALEFROMTHEPOINTOFVIEWOFANOVERALLSALESPROCESSENGINEERINGEFFORT,CUSTOMERSERVICEPLAYSANIMPORTANTROLEINANORGANIZATIONSABILITYTOGENERATEINCOMEANDREVENUEFROMTHATPERSPECTIVE,CUSTOMERSERVICESHOULDBEINCLUDEDASPARTOFANOVERALLAPPROACHTOSYSTEMATICIMPROVEMENTACUSTOMERSERVICEEXPERIENCECANCHANGETHEENTIREPERCEPTIONACUSTOMERHASOFTHEORGANIZATIONA57A57A57A58A59A60A60A61A62A63A64A65A66A67A682INTHISTHESIS,CUSTOMERSERVICEISDISCUSSEDFROMTHELOGISTICSPERSPECTIVECUSTOMERSERVICEISTHEOUTCOMEOFALLLOGISTICSACTIVITIESORSUPPLYCHAINPROCESSESTHEREFORE,THEDESIGNOFTHELOGISTICSSYSTEMSETSTHELEVELOFCUSTOMERSERVICETOBEOFFEREDREVENUESGENERATEDFROMCUSTOMERSALESANDTHECOSTSASSOCIATEDWITHTHESYSTEMDESIGNESTABLISHTHEPROFITSTOBEREALIZEDBYTHEFIRMDECIDINGTHELEVELOFCUSTOMERSERVICETOOFFERCUSTOMERSISESSENTIALTOMEETINGAFIRMSPROFITOBJECTIVESBALLOU,200812CUSTOMERSERVICELEVELANALYSISTHEPERCENTAGEAVAILABILITYISDESCRIBEDASTHESERVICELEVELITMIGHTSEEMTHATTHESIMPLEANSWERWOULDBETOACHIEVE100PERCENTAVAILABILITYBUTTHECOSTOFACHIEVINGTHISRISESVERYSTEEPLYASTHESERVICELEVELAPPROACHES100PERCENTCUST,MAR18THEREISAVERYCLEARTRADEOFFHEREBETWEENCUSTOMERSERVICELEVELANDCOSTFORTUNATELYTHEINDICATIONSARETHAT,INTERMSOFDEMANDGENERATEDCUSTOMERSARENOTSIGNIFICANTLYAFFECTEDBYMINORVARIATIONSIFTHEREAREGENERALLYHIGHLEVELSOFAVAILABILITY121CUSTOMERSERVICEELEMENTSFROMTHECORPORATEWIDEPERSPECTIVE,CUSTOMERSERVICEHASBEENVIEWEDASANESSENTIALINGREDIENTINMARKETINGSTRATEGYMARKETINGHASOFTENBEENDESCRIBEDINTERMSOFANACTIVITYMIXOFFOURPSPRODUCT,PRICE,PROMOTION,ANDPLACE,WHEREPLACEBESTREPRESENTSPHYSICALDISTRIBUTIONWHICHELEMENTSCONSTITUTECUSTOMERSERVICEANDJUSTHOWTHEYIMPACTONBUYERBEHAVIOURHASBEENTHEFOCUSOFMUCHRESEARCHTHROUGHOUTTHEYEARSBECAUSECUSTOMERCANNOTEASILYIDENTIFYWHATMOTIVATESTHEIRBEHAVIOUR,PRECISELYDEFININGCUSTOMERSERVICEWILLREMAINELUSIVEHOWEVER,SOMEINSIGHTCANBEGAINEDTHROUGHSEVERALCUSTOMERSURVEYSBALLOU,2008PERHAPSTHEMOSTIMPORTANTASPECTOFCUSTOMERORCLIENTSERVICE,INTERMSOFDELIVERYOFAPRODUCTORSERVICE,ISTHATITSHOULDBEAVAILABLEWHENANDWHERETHECUSTOMERWANTSITIFTHISISNOTTHECASE,ANIMMEDIATESALEMAYWELLBELOSTMOREIMPORTANTLY,LONGTERMSALESMAYALSOHAVEBEENLOSTIFTHECUSTOMERWEREFORCEDTOCHANGETOANOTHERBRAND,ANDTHENDECIDEDTOSTAYWITHTHATBRANDHOWEVER,THEREAREOTHERELEMENTSOFCUSTOMERSERVICELEVEL,ONEOFWHICHRELATESTOTHETIMEITTAKESTOMEETANORDERWHERETHEPRODUCTISNOTDELIVEREDEXSTOCKTHISISCALLEDTHELEADTIMEORSOMETIMESTHEORDERCYCLETIMECLEARLY,THESHORTERTHELEADTIME,THEBETTERTHESERVICEA57A57A57A58A59A60A60A61A62A63A64A65A66A67A683ONTHEOTHERHAND,ITISFREQUENTLYTHECASETHATITISTHERELIABILITYOFTHELEADTIMETHATISMOREIMPORTANTACUSTOMERWHOHASTOARRANGEANUMBEROFOTHERACTIVITIESTOMESHINWITHTHEDELIVERYOFTHEPRODUCTWILLOFTENPREFERTHATTHEDELIVERYDATEISCERTAINEVENIFITISLATERTHANITMIGHTHAVEBEENRATHERTHANFACEUNCERTAINTYANOTHERIMPORTANTELEMENTISTHERESPONSETIMEHOWLONGITTAKESACUSTOMERTOFINDOUTWHATISACTUALLYHAPPENINGTOTHEORDERINTHESPECIFICCONTEXTOFQUEUESASSOCIATEDWITHPROVISIONOFASERVICE,DAVIDMAISTERLISTSANUMBEROFPROPORTIONS（1）UNOCCUPIEDTIMEFEELSLONGERTHANOCCUPIEDTIMEG258（2）PREPROCESSWAITSFEELLONGERTHANINPROCESSWAITSG258（3）ANXIETYMAKESWAITSSEEMLONGERG258（4）UNCERTAINWAITSARELONGERTHANKNOWN,FINITEWAITSG258（5）UNEXPLAINEDWAITSARELONGERTHANEXPLAINEDWAITSG258（6）UNFAIRWAITSARELONGERTHANEQUITABLEWAITSG258（7）THEMOREVALUABLETHESERVICETHELONGERTHECUSTOMERWILLWAITG258（8）SOLOWAITSFEELLONGERTHANGROUPWAITSG258THEOTHERMEASURE,PERHAPSMOSTIMMEDIATELYOBVIOUSTOTHECUSTOMER,ISTHEFAULTRATETHISMAYBEDIVIDEDINTOTWOCATEGORIESINVOLVINGTHEWRONGPRODUCT,QUANTITYORPRICE,ORDELIVERYTOTHEWRONGADDRESS,SHOULDNOTHAPPENBUTTHEYDOANDFARMOREFREQUENTLYTHANYOUMIGHTEXPECTFAULTYORDAMAGEDGOODSAREUSUALLYWHATQUALITYISSEENTOBEABOUTANDCUSTOMERS,UNDERSTANDABLY,EXPECT100PERCENTPERFORMANCEINTHISAREABUTRARELYGETIT,EXCEPTINTHESTANDARDIZEDMASSCONSUMERMARKETSINMANYMARKETS,THISMEANSTHATINORDERTOAVOIDDELIVERYOFOUTOFDATEPRODUCTS,ORGOODSBEYONDTHEIREXPIRYDATE,THEDISTRIBUTIONCHAINHASTOOPERATEARIGOROUSFIFOFIRSTINFIRSTOUTCONTROLSYSTEMWHEREASLIFOLASTINFIRSTOUTISMORENORMALANDNATURALTHELATESTADDITIONTOSTOCKBEINGLOADEDATTHEFRONTOFTHESHELF,PUSHINGTHEOLDERSTOCKTOTHEBACK122CUSTOMERSERVICEQUALITYTHEELEMENTSDESCRIBEDSOFARLARGELYRELATETOTHENARROWPERSPECTIVEOFSERVICELEVELSINTHECONSUMERGOODSMARKETINTHEOTHERSECTORS,PARTICULARLYTHATOFINDUSTRIALGOODS,CUSTOMERSERVICEMAYBEEVENMOREIMPORTANTANDCERTAINLYMORECOMPLEXFOREXAMPLE,ITISOFTENSTATEDNOTLEASTBYTHECOMPANYITSELFTHATIBMSSUCCESSATITSPEAKINTHE1980SASAMARKETINGCOMPANYASALMOSTENTIRELYDUETOITSCOMMITMENTTO“CUSTOMERSERVICE”A57A57A57A58A59A60A60A61A62A63A64A65A66A67A684INTHESERVICESECTORPARTICULARLYINTHEAREAOFPERSONALSERVICES,CUSTOMERSERVICEISOFTEN,BYDEFINITION,THE“PRODUCT”ITSELFTHE“QUALITY”OFTHECUSTOMERSERVICEREPRESENTSTHEQUALITYOFTHE“PRODUCT”THECUSTOMERISBUYINGINDEED,INMANYSERVICESECTORSTHECUSTOMERHASTOBUYTHESERVICE“ONTRUST”SINCEITCANNOTBEINSPECTEDBEFOREUSEMONITORINGSUCHCUSTOMERSERVICE,ANDMAINTAININGSTANDARDS,MAYBEPARTICULARLYDIFFICULTFORSOMESERVICEPROVIDERSESPECIALLYWHERETHEREISAHIGHCONTENTOFPERSONALSERVICEFOREXAMPLE,INHOTELSANDCATERINGINTHEPRIVATESECTOR,ANDINHOSPITALSINTHEPUBLICSECTOR13COSTCOSTISVALUATIONINTERMSOFMONEYOFEFFORT,MATERIAL,RESOURCES,TIMEANDUTILITIESCONSUMED,RISKSINCURRED,ANDOPPORTUNITYFORGONEINPRODUCTIONANDDELIVERYOFAGOODORSERVICECOST,2011ALLEXPENSESARECOSTS,BUTNOTALLCOSTSSUCHASTHOSEINCURREDINACQUISITIONOFANINCOMEGENERATINGASSETAREEXPENSESINTHISCASE,MONEYISTHEINPUTTHATISGONEINORDERTOACQUIRETHETHINGTHISACQUISITIONCOSTMAYBETHESUMOFTHECOSTOFPRODUCTIONASINCURREDBYTHEORIGINALPRODUCER,ANDFURTHERCOSTSOFTRANSACTIONASINCURREDBYTHEACQUIREROVERANDABOVETHEPRICEPAIDTOTHEPRODUCERUSUALLY,THEPRICEALSOINCLUDESAMARKUPFORPROFITOVERTHECOSTOFPRODUCTIONCOSTSAREOFTENFURTHERDESCRIBEDBASEDONTHEIRTIMINGORTHEIRAPPLICABILITYINACCOUNTING,COSTSARETHEMONETARYVALUEOFEXPENDITURESFORSUPPLIES,SERVICES,LABOUR,PRODUCTS,EQUIPMENTANDOTHERITEMSPURCHASEDFORUSEBYABUSINESSOROTHERACCOUNTINGENTITYITISTHEAMOUNTDENOTEDONINVOICESASTHEPRICEANDRECORDEDINBOOKKEEPINGRECORDSASANEXPENSEORASSETCOSTBASISOPPORTUNITYCOST,ALSOREFERREDTOASECONOMICCOSTISTHEVALUEOFTHEBESTALTERNATIVETHATWASNOTCHOSENINORDERTOPURSUETHECURRENTENDEAVOURIE,WHATCOULDHAVEBEENACCOMPLISHEDWITHTHERESOURCESEXPENDEDINTHEUNDERTAKINGITREPRESENTSOPPORTUNITIESFORGONEINTHEORETICALECONOMICS,COSTUSEDWITHOUTQUALIFICATIONOFTENMEANSOPPORTUNITYCOSTA57A57A57A58A59A60A60A61A62A63A64A65A66A67A68514COSTANALYSISWHENDEVELOPINGABUSINESSPLANFORANEWCOMPANY,PRODUCT,ORPROJECT,PLANNERSTYPICALLYMAKECOSTANALYSISINORDERTOASSESSWHETHERREVENUES/BENEFITSWILLCOVERCOSTSTHISISDONEINBOTHBUSINESSANDGOVERNMENTCOSTSAREOFTENUNDERESTIMATEDRESULTINGINCOSTOVERRUNDURINGIMPLEMENTATIONMAINCAUSESOFCOSTUNDERESTIMATIONANDOVERRUNAREOPTIMISMBIASANDSTRATEGICMISREPRESENTATION141COSTESTIMATETHETOTALCOSTOFACQUISITION（TCA）ISAMANAGERIALACCOUNTINGCONCEPTTHATINCLUDESALLTHECOSTSASSOCIATEDWITHBUYINGGOODS,SERVICES,ORASSETSGENERALLY,ITISTHENETPRICEPLUSOTHERCOSTSNEEDEDTOPURCHASETHEITEMANDGETITTOTHEPOINTOFUSETHESEOTHERCOSTSCANINCLUDETHEITEMSPURCHASINGCOSTSCLOSING,RESEARCH,ACCOUNTING,COMMISSIONS,LEGALFEES,TRANSPORTATION,PREPARATIONANDINSTALLATIONCOSTSTHETOTALCOSTOFOWNERSHIPTCOISAFINANCIALESTIMATEWHOSEPURPOSEISTOHELPCONSUMERSANDENTERPRISEMANAGERSDETERMINEDIRECTANDINDIRECTCOSTSOFAPRODUCTORSYSTEMITISAMANAGEMENTACCOUNTINGCONCEPTTCO,WHENINCORPORATEDINANYFINANCIALBENEFITANALYSIS,PROVIDESACOSTBASISFORDETERMININGTHEECONOMICVALUEOFANINVESTMENTEXAMPLESINCLUDERETURNONINVESTMENT,INTERNALRATEOFRETURN,ECONOMICVALUEADDED,RETURNONINFORMATIONTECHNOLOGY,ANDRAPIDECONOMICJUSTIFICATIONATCOANALYSISINCLUDESTOTALCOSTOFACQUISITIONANDOPERATINGCOSTSATCOANALYSISISUSEDTOGAUGETHEVIABILITYOFANYCAPITALINVESTMENTANENTERPRISEMAYUSEITASAPRODUCT/PROCESSCOMPARISONTOOLITISALSOUSEDBYCREDITMARKETSANDFINANCINGAGENCIESTCODIRECTLYRELATESTOANENTERPRISESASSETAND/ORRELATEDSYSTEMSTOTALCOSTSACROSSALLPROJECTSANDPROCESSES,THUSGIVINGAPICTUREOFTHEPROFITABILITYOVERTIMETCOINCOMPUTERANDSOFTWAREINDUSTRIESTCOANALYSISWASPOPULARIZEDBYTHEGARTNERGROUPIN1987THEROOTSOFTHISCONCEPTDATEATLEASTBACKTOTHEFIRSTQUARTEROFTHETWENTIETHCENTURYMICROSOFTTHENEMBRACEDTHECONCEPTANDCOMMISSIONEDVARIOUSWHITEPAPERSANDCASESTUDIESINTHELATE90STOSHOWTHATWINDOWSHADALOWERTCOTHANLINUXTHESTUDIESHAVENOTBEENFOUNDTOBEEITHEROBJECTIVEORCONCLUSIVEMANYDIFFERENTMETHODOLOGIESANDSOFTWARETOOLSHAVEBEENDEVELOPEDTOANALYZETCOTCOTRIESTOQUANTIFYTHEFINANCIALIMPACTOFDEPLOYINGANINFORMATIONTECHNOLOGYPRODUCTOVERITSLIFECYCLEA57A57A57A58A59A60A60A61A62A63A64A65A66A67A686THESETECHNOLOGIESINCLUDESOFTWAREANDHARDWARE,ANDTRAININGTECHNOLOGYDEPLOYMENTCANINCLUDETHEFOLLOWINGASPARTOFTCOCOMPUTERHARDWAREANDPROGRAMSNETWORKHARDWAREANDSOFTWARE,SERVERHARDWAREANDSOFTWARE,WORKSTATIONHARDWAREANDSOFTWARE,INSTALLATIONANDINTEGRATIONOFHARDWAREANDSOFTWARE,PURCHASINGRESEARCH,WARRANTIESANDLICENSES,LICENSETRACKINGCOMPLIANCE,MIGRATIONEXPENSES,RISKSSUSCEPTIBILITYTOVULNERABILITIES,AVAILABILITYOFUPGRADES,PATCHESANDFUTURELICENSINGPOLICIES,ETCOPERATIONEXPENSESINFRASTRUCTUREFLOORSPACE,ELECTRICITYFORRELATEDEQUIPMENT,COOLING,BACKUPPOWER,TESTINGCOSTS,DOWNTIME,OUTAGEANDFAILUREEXPENSES,DIMINISHEDPERFORMANCEIEUSERSHAVINGTOWAIT,DIMINISHEDMONEYMAKINGABILITY,SECURITYINCLUDINGBREACHES,LOSSOFREPUTATION,RECOVERYANDPREVENTION,BACKUPANDRECOVERYPROCESS,TECHNOLOGYTRAINING,AUDITINTERNALANDEXTERNAL,INSURANCE,INFORMATIONTECHNOLOGYPERSONNEL,CORPORATEMANAGEMENTTIMELONGTERMEXPENSESREPLACEMENT,FUTUREUPGRADEORSCALABILITYEXPENSES,DECOMMISSIONINGTCOINTRANSPORTATIONINDUSTRYTHETCOCONCEPTISWIDELYUSEDINTHETRANSPORTATIONINDUSTRYFOREXAMPLE,THETCODEFINESTHECOSTOFOWNINGANAUTOMOBILEFROMTHETIMEOFPURCHASEBYTHEOWNER,THROUGHITSOPERATIONANDMAINTENANCETOTHETIMEITLEAVESTHEPOSSESSIONOFTHEOWNERCOMPARATIVETCOSTUDIESBETWEENOFVARIOUSMODELSHELPCONSUMERSCHOOSEACARTOFITTHEIRNEEDSANDBUDGETSOMEOFTHEKEYELEMENTSINCORPORATEDINTHECOSTOFOWNERSHIPFORAVEHICLEINCLUDEDEPRECIATIONCOSTS,FUELCOSTS,INSURANCE,FINANCING,REPAIRS,FEESANDTAXES,MAINTENANCECOSTS,OPPORTUNITYCOSTS142LOGISTICSCOSTSTHECOSTSTHATAFIRMINCURSFORPHYSICALSUPPLYANDPHYSICALDISTRIBUTIONOFTENDETERMINEHOWFREQUENTLYITSLOGISTICSSYSTEMSHOULDBEREPLANNEDALLOTHERFACTORSBEINGEQUAL,AFIRMPRODUCINGHIGHVALUEDGOODSSUCHASMACHINETOOLSORCOMPUTERS,WITHLOGISTICSCOSTSBEINGASMALLPORTIONOFTOTALCOSTS,WILLLIKELYGIVELITTLEATTENTIONTOTHEOPTIMALITYOFLOGISTICSSTRATEGYHOWEVER,WHENLOGISTICSCOSTSAREHIGH,ASTHEYCANBEINTHECASEOFPACKAGEDINDUSTRIALCHEMICALSANDFOODPRODUCTS,LOGISTICSSTRATEGYISAKEYCONCERNWITHHIGHLOGISTICSCOSTS,EVENTHESMALLIMPROVEMENTSBROUGHTABOUTBYFREQUENTREPLANNINGCANRESULTINSUBSTANTIALCOSTREDUCTIONA69A69A69A70A71A72A72A73A74A75A76A77A78A79A807CUSTOMERSERVICEBROADLYINCLUDESINVENTORYAVAILABILITY,SPEEDOFDELIVERY,ANDORDERFILLINGSPEEDANDACCURACYTHECOSTSASSOCIATEDWITHTHESEFACTORSINCREASEATAHIGHERRATEASTHECUSTOMERSERVICELEVELISRAISEDTHEREFORE,DISTRIBUTIONCOSTSWILLBEQUITESENSITIVETOTHELEVELOFCUSTOMERSERVICEPROVIDED,ESPECIALLYIFITISALREADYHIGHA69A69A69A70A71A72A72A73A74A75A76A77A78A79A8082TRADEOFFSBETWEENSERVICELEVELANDCOSTINAPRACTICALWAY,BUSINESSLOGISTICSMANAGEMENTFROMSUPPLYCHAINMANAGEMENTPROMOTESTHESAMEMISSIONINSOMANYRESPECTSTOGETTHERIGHTGOODSORSERVICESTOTHERIGHTPLACE,ATTHERIGHTTIME,ANDINTHEDESIREDCONDITIONWEWANTTOMAKETHEGREATESTCONTRIBUTIONTOTHEFIRMTHROUGHACHIEVINGTHEMISSION,BUTTHESERVICELEVELALWAYSCONFLICTSWITHTHESIGNIFICANTCOSTINLOGISTICSPROCESS21COSTBENEFITANALYSISCOSTBENEFITANALYSISISATERMTHATREFERSBOTHTOHELPINGTOAPPRAISE,ORASSESS,THECASEFORAPROJECT,PROGRAMMEORPOLICYPROPOSAL,ANDANAPPROACHTOMAKINGECONOMICDECISIONSOFANYKIND（COSTBENE2011）UNDERBOTHDEFINITIONSTHEPROCESSINVOLVES,WHETHEREXPLICITLYORIMPLICITLY,WEIGHINGTHETOTALEXPECTEDCOSTSAGAINSTTHETOTALEXPECTEDBENEFITSOFONEORMOREACTIONSINORDERTOCHOOSETHEBESTORMOSTPROFITABLEOPTIONTHEFORMALPROCESSISOFTENREFERREDTOASEITHERCBACOSTBENEFITANALYSISORBCABENEFITCOSTANALYSISBENEFITSANDCOSTSAREOFTENEXPRESSEDINMONEYTERMS,ANDAREADJUSTEDFORTHETIMEVALUEOFMONEY,SOTHATALLFLOWSOFBENEFITSANDFLOWSOFPROJECTCOSTSOVERTIMEWHICHTENDTOOCCURATDIFFERENTPOINTSINTIMEAREEXPRESSEDONACOMMONBASISINTERMSOFTHEIR“PRESENTVALUE”CLOSELYRELATED,BUTSLIGHTLYDIFFERENT,FORMALTECHNIQUESINCLUDECOSTEFFECTIVENESSANALYSIS,ECONOMICIMPACTANALYSIS,FISCALIMPACTANALYSI