TOTAL COST AND LOGISTICS SOLUTIONS

Abstract

Total cost analysis is insufficiently used in enterprises and slightly explored in scientific researches notwithstanding its essentialness for logistics management. This work, based in this perception, had as main objective the characterization of total cost theory, with a theoretical essay format. With the aim of meeting this objective, this study firstly examined the emersion and the sedimentation of the concept and its possible role in logistics solutions. Afterwards, it argued that total cost analysis can ensure that the design and the redesign of logistics network, processes and projects will be guided by the search to offer the established service level at the lowest total cost. Furthermore, it showed what factors lead to the use of total cost analysis, with emphasis to the high hierarchal position and the wide ambit of control of logistics area, the presence of solutions design in logistics scope, the integration of logistics activities, the utilization of models and the availability of accurate accounting information. Finally, it articulated and consolidated all the discussed content and suggested that future studies should probe more deeply the subject and use alternative theoretical platforms, as psychological and institutional theories.

Keywords: Logistics. Total cost. Logistics solutions.