Net landed or total supply chain costs are used terminologies to indicate how much it costs the organization to have an item on shelf in healthcare organizations. Does anyone know more about that? And what is an appropriate model to capture the costs elements of these items?
From my understanding, the landing cost is equivalent to landed cost, which only include the freight cost and insurance cost up to the port of entry. This would mean that the real cost of having an item would mean the cost of delivery right to the door or hands of the individual or institution. In retrospect, each cost component have already incurred labor and other cost, which by definition the cost of production or production cost method not forgetting the interest/profit margin. In some places this profit margin is legalized by law, in others it is not. The trick to the matter is to confirm true margin applied at each stage or service provider.
Landing cost can be calculated from the fuel price and insurance cost. Freight cost will depend on fuel price. Insurance cost will depend on lifetime of the medicine.
Cost for medical items can capture elements for ownership brings purchase costs, logistic cost etc., but ownership can also bring substantial costs for installing, deploying, operating, upgrading, and maintaining the same assets. For many kinds of acquisitions, TCO analysis finds a very large difference between purchase price and total life cycle costs, especially when viewed across a long ownership period.
Dear,
I recommend total logistic cost. It can be calculated as follows:
Total Logistic Cost (TLC)= Total inventory cost+ total facility cost+ total facility cost
Each of these costs have some components that are obtainable from related papers. Don't forget to consider the fact of being cost effective or responsive. It can affect the shelf price. Good luck
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