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A Method Of The Minimizing Of The Total Acquisitions Cost With The Decreasing Variable Demand

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    By companies evolution and because of the competition development, the management has been tried various ways to streamline the activities and thus profit attraction. One of the most efficient ways to obtain these results is to reduce the costs of any kind. Either that are the supply costs, storage costs, or expenses of maintenance and repair of equipment, either that are expenditures on human resources or advertising expenditures, all this leads to decreasing income and profit at the same time. The more work is done at the reduction of expenses of an entity, the better benefits, will not cease to appear. There were carried out a lot of studies for costs reduction, but it is still not found the most efficient way to solve this problem. This study has a new approach for solving this, trying to make known a new way of minimizing the total cost of supply, by presenting some hypothesis about the decreasing variable demand, their demonstration and the development of formulas for reducing the costs. The hypothesizes presented in the model described below, can be maximally exploited for obtaining new models of reducing the total cost, depending on the ways the entities are supplied.

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    Article provided by Constantin Brancusi University, Faculty of Economics in its journal Constantin Brancusi University of Targu Jiu Annals - Economy Series.

    Volume (Year): 1 (2016)
    Issue (Month): (February)
    Pages: 169-174

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    Handle: RePEc:cbu:jrnlec:y:2016:v:1:p:169-174
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    1. Michalski, Grzegorz, 2008. "Value-Based Inventory Management," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(1), pages 82-90, March.
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