Life Cycle Costs
Life cycle costs (LCC) refers to the total cost of owning, operating and maintaining an asset over its entire life. This includes the purchase price, installation and commissioning costs, operating costs, maintenance and repair costs, decommissioning and disposal costs.
LCC is a important tool for procurement decision makers as it allows them to compare the total cost of ownership of different options and make the best decision for their organization.
When making decisions about procurement, it is important to consider all life cycle costs in order to get the most value for your money.