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Purchasing price assessment of leverage items: A Data Envelopment Analysis approach
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Purchasing price assessment of leverage items: A Data Envelopment Analysis approach

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  • Visani, Franco
  • Boccali, Filippo

Abstract

In the Kraljic Portfolio Matrix (KPM), ‘leverage’ items are purchases with a strong financial impact but limited associated risk. For these items, the priority for the buyer is to exploit the full purchasing potential, purchasing the items with the lowest price compared to their value attributes, i.e. the features appreciated by the customer. Despite the financial importance of such purchases, practical approaches able to support buyers in assessing their purchasing prices in a value-based perspective are still lacking.

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  • Visani, Franco & Boccali, Filippo, 2020. "Purchasing price assessment of leverage items: A Data Envelopment Analysis approach," International Journal of Production Economics, Elsevier, vol. 223(C).
    • Handle: RePEc:eee:proeco:v:223:y:2020:i:c:s0925527319303494
    DOI: 10.1016/j.ijpe.2019.107521
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