Journal of Supply Chain Management

Article Index - Results


A valuable reference tool, the Article Index is a comprehensive list of articles that have appeared in the Journal of Supply Chain Management (formerly International Journal of Purchasing and Materials Management, Journal of Purchasing & Materials Management and Journal of Purchasing). Articles are organized by subject for easy locating and study.

Journal Article Index
Term selected: Cost/Price Analysis and Cost Reduction

  • "A Structured Method For Applying Purchasing Cost Management Tools" Members Only Content, Vol. 32, No. 1 (Winter 1996), p. 11.

    Managing the cost of purchased goods and services continues to be one of the hottest issues in Purchasing Today. It has received a great deal of attention by top management, and in the press in periodicals such as Fortune and Harvard Business Review. As stated recently in Fortune magazine, "Simple fact: when the goal is boosting profits by dramatically lowering costs, a business should look first to what it buys."1 The Fortune article goes on to give a number of suggestions for reducing costs, such as leveraging your buying power; committing to a handful of suppliers; and working together to reduce total cost. These broad suggestions are helpful in providing direction, yet they are not specific enough to help purchasers actually analyze the situations they may face.
  • A Study in Purchasing Effectiveness, Vol. 2, No. 2 (Spring 1966), p. 76.

    This article is not available online.
  • Accurate Product Costing in a JIT Environment, Vol. 28, No. 4 (Fall 1992), p. 28.

    This article is not available online.
  • Closing the Planning-Operations Gap, Vol. 13, No. 4 (Winter 1977), p. 3.

    This article is not available online.
  • Controlling Premium Transportation Expenditures, Vol. 7, No. 4 (Fall 1971), p. 24.

    This article is not available online.
  • Controlling Purchasing Price Performance, Vol. 24, No. 3 (Fall 1988), p. 36.

    This article is not available online.
  • Cost Containment Strategies: Challenges for Strategic Purchasing in the 1990s, Vol. 29, No. 1 (Winter 1993), p. 17.

    This article is not available online.
  • "Cost Plus What? The Importance of Accurate Profit Calculations in Cost-Plus Agreements" Members Only Content, Vol. 33, No. 2 (Spring 1997), p. 35.

    As cost-plus contracts increase in frequency and complexity, purchasing professionals are required to exercise greater degrees of sophistication in understanding applicable production costs as well as negotiating the appropriate profit suppliers will earn over the life of an agreement. While the need to evaluate and eliminate nonvalue added costs remains a critical component of sustainable supplier relationships, the procurement professional must equally insist on objective definitions of, and clear measures for, supplier returns. By using discounted cash flow analysis, procurement professionals can quantify after-tax returns commensurate with the supplier's risk in a cost-plus contract.
  • Effect of the Number of Competitors on Costs, Vol. 7, No. 4 (Fall 1971), p. 13.

    This article is not available online.
  • "Effectively Selecting Suppliers Using Total Cost of Ownership" Members Only Content, Vol. 35, No. 1 (Winter 1999), p. 5.

    In today's business world characterized by intense global competition, cost management is an important strategic weapon. External purchases of products and services generally account for more than 50 percent of total costs. Significant cost savings can be realized by effectively selecting suppliers and determining optimal order quantities. Existing cost management tools focus on rationalizing production and distribution activities and do not consider the purchasing function. In practice, simple, subjective, and incomplete approaches for supplier selection are often used. This article presents a rigorous decision support system using total cost of ownership information. The system uses a dynamic mathematical programming model that derives a purchasing strategy by minimizing the total costs, taking into account the relevant constraints. It allows the purchasing and supply manager to objectively evaluate alternative policies. A recent implementation of the system for two product groups at Cockerill Sambre shows potential savings of more than 10 percent compared to current practices.
  • "Evaluating Suppliers' Overhead Allocations" Members Only Content, Vol. 30, No. 2 (Spring 1994), p. 39.

    The practice of relying solely on a supplier's direct labor as the basis for allocating indirect costs may be questionable in many cases, as suppliers continue to automate their production systems. In this article, regression analysis is presented as a technique for evaluating the appropriateness of the indirect cost allocation mechanism used by suppliers. Detailed information about a supplier's production activities is used to systematically evaluate the indirect cost drivers, allocation rates, and their appropriateness. This analytical tool can also be used to provide information for the construction of a new indirect cost allocation mechanism for counterproposals.
  • Increase Profits by Combining Requirements for Subcontracted Items, Vol. 8, No. 3 (Summer 1972), p. 69.

    This article is not available online.
  • Input-Output Analysis and Industrial Purchasing, Vol. 2, No. 2 (Spring 1966), p. 67.

    This article is not available online.
  • "Is There Such a Thing as a Free Lunch?" Members Only Content, Vol. 32, No. 1 (Winter 1996), p. 44.

    Analysis of data from 181 respondents indicated that the concept of the business lunch is alive and well among both purchasing and sales professionals. Neither the purchasing nor sales professionals believed that there was a possibility for a high level of ethical conflict in a majority of the business lunch scenarios they were asked to consider. There were significant differences between the sales and purchasing people when asked about the legitimate purposes of the lunch. Moreover, female purchasers were more likely to disagree with the social purposes of the business lunch than were their male counterparts. Implications of these findings and suggestions for future research are discussed.
  • Life Cycle Costing in Industrial Purchasing, Vol. 16, No. 4 (Winter 1980), p. 8.

    This article is not available online.
  • Life Cycle Costing: Decision Making Tool for Capital Equipment Acquisitions, Vol. 5, No. 3 (Summer 1969), p. 16.

    This article is not available online.
  • Material Cost Sensitivity: Some Consequences and Antecedents, Vol. 28, No. 3 (Summer 1992), p. 26.

    This article is not available online.
  • "Moving Toward Value-Based Purchasing" Members Only Content, Vol. 30, No. 2 (Spring 1994), p. 3.

    As the marketplace becomes more competitive, the concept of "value" is receiving increased attention. Firms are attempting to increase the value of their products and services and reduce the nonvalue-added activities, both in terms of number and cost. One function that has a tremendous impact on these efforts is purchasing. Purchasing, being a boundary spanning function, has the opportunity to increase value through two major linkages: internal interactions and external involvement.
  • PM's and the Price-Perceived Quality Relationship, Vol. 14, No. 4 (Winter 1978), p. 9.

    This article is not available online.
  • "Purchasing and Supply Management's Participation in the Target Costing Process" Members Only Content, Vol. 36, No. 2 (Spring 2000), p. 39.

    This article explores the participation of the purchasing and supply management function in the process of target costing. Target costing is an emerging process whereby organizations calculate the allowable cost (i.e., target cost) for buying/producing the product or service they offer for sale by first determining the acceptable selling price in the marketplace and the organization's required internal margin on the product. Based on case studies of organizations that use target costing, this research is both descriptive and prescriptive in nature.
  • "Purchasing and the Learning Curve: A Case Study of a Specialty Chemicals Business Unit" Members Only Content, Vol. 35, No. 2 (Spring 1999), p. 44.

    This article presents a case study of the learning curve in a specialty chemicals business unit. Even though the learning curve literature has largely ignored the effects of purchasing, over 80 percent of the total cost reduction in this study was the result of raw material cost savings. The purpose of this article is to highlight the important role played by purchasing in the study of the learning curve. This study was conducted when the author was a business manager in the subject company which allowed for complete access to data, personnel, and company documents. This "insider's position" was a critical factor in uncovering the sources of cost reduction in this business unit.
  • Purchasing Decisions Considering Future Price Increases: An Empirical Approach, Vol. 23, No. 1 (Spring 1987), p. 25.

    This article is not available online.
  • Purchasing's Role in Value Analysis: Lessons from Creative Problem Solving, Vol. 28, No. 2 (Spring 1992), p. 37.

    This article is not available online.
  • ROI — 'King' of Inventory Management, Vol. 1, No. 3 (Fall 1965), p. 24.

    This article is not available online.
  • ROI Analysis for Price Breaks, Vol. 21, No. 1 (Spring 1985), p. 23.

    This article is not available online.
  • Seller Pricing Strategies: A Buyer's Perspective, Vol. 24, No. 3 (Fall 1988), p. 9.

    This article is not available online.
  • Target Purchasing: The Price-Volume Distinction, Vol. 14, No. 2 (Summer 1978), p. 14.

    This article is not available online.
  • The Implementation of Target Costing in the United States: Theory Versus Practice, Vol. 42, No. 1 (Winter 2006), p. 13.

    Target costing has been touted as a process that can significantly improve new product development results in the accounting, engineering, operations management, and purchasing literature. The target costing process considers the voice of the customer, incorporates earlier supplier involvement and concurrent engineering, utilizes cross-functional teams, and focuses on creating a good or service that is both desirable and affordable to the customer and profitable to the producing organization. Unlike previous studies, which have focused on Japanese firms, or used single case studies, this paper uses the findings from case studies of 11 organizations actively engaged in the target costing process. This paper explores how the target costing process is used in practice in the United States, comparing it with the popular theoretical model of target costing. It helps shed light on to target costing practices of U.S. and other Western firms, and highlights the often overlooked role of the purchasing function in successful target costing efforts.
  • The Multicommodity, Multiproduction Facility Purchasing Problem: An Analytic Approach, Vol. 10, No. 2 (Spring 1974), p. 20.

    This article is not available online.
  • The Role of Purchasing in Cost Savings Analysis, Vol. 28, No. 1 (Winter 1992), p. 26.

    This article is not available online.
  • The Success Story of Value Analysis/Value Engineering, Vol. 4, No. 2 (Spring 1968), p. 52.

    This article is not available online.
  • "Total Cost of Ownership Models: An Exploratory Study" Members Only Content, Vol. 38, No. 3 (Summer 2002), p. 18.

    This research examines organizational purchasing models focusing on the use of total cost of ownership (TCO) to value purchase opportunities. The research presents evidence that leading-edge companies actually use such models. This exploratory study provides, for the first time, data on the nature, and use, of the cost drivers on which organizations base their TCO computations. The study suggests a generic model of total cost of ownership is not appropriate. However, the findings of this research suggest a TCO model based on a core set of cost drivers, along with an auxiliary set of cost drivers, is appropriate. The core cost drivers would be present in all, or most, TCO computations. Purchasing managers could use different, specific cost drivers from the auxiliary set to tailor the TCO computation for a particular purchase situation. The authors also suggest that a value-based, multi-firm, or supply chain, TCO computation model is needed. Such a TCO model should be similar to a single-firm TCO model.
  • Total Cost of Ownership: Elements and Implementation, Vol. 29, No. 4 (Fall 1993), p. 2.

    This article is not available online.
  • Total Cost Supplier Selection Model: A Case Study, Vol. 29, No. 1 (Winter 1993), p. 42.

    This article is not available online.
  • Use of Analytical Techniques in Purchasing, Vol. 19, No. 1 (Spring 1983), p. 25.

    This article is not available online.
  • Use of Price Indexes in MRO Buying, Vol. 25, No. 1 (Spring 1989), p. 63.

    This article is not available online.
  • Value Analysis, Vol. 11, No. 2 (Summer 1975), p. 23.

    This article is not available online.
  • Value Analysis: A Definition of Terms and Concepts, Vol. 2, No. 4 (Fall 1966), p. 16.

    This article is not available online.
  • When, How, and Why Suppliers Consider Price Moves, Vol. 25, No. 3 (Fall 1989), p. 2.

    This article is not available online.