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Evaluate and compare the pros and cons of the Collaborative Planning Forecasting Replenishment system designed by Wal-Mart and Warner Lambert. Discussion Questions 1. Identify the elements of the Total Cost of Procurement. What role do these elements

Evaluate and compare the pros and cons of the Collaborative Planning Forecasting Replenishment system designed by Wal-Mart and Warner Lambert.

 

Discussion Questions

 

1. Identify the elements of the Total Cost of Procurement. What role do these elements of logistics play in cost process?

There are 11 elements of Total Cost of Procurement categorized under buying and holding costs. The elements of buying costs include buying costs price, shopping time, paperwork, expediting, mistakes and internal handling to final consumption point. The sub elements of holding costs include storage space cost, financing of inventory, control, shrinkage and taxes and insurance costs.

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