Azram, a procurement analyst, has been tasked with applying whole life asset management when purchasing laboratory equipment. Was this the correct course of action?
A.
Yes, because this focuses only on the price of the equipment
B.
Yes, because this considers all associated costs
C.
No, because this considers the costs of quality
D.
No, because this covers various transactional costs
Comprehensive and Detailed Explanation (from CIPS L4M2 – Whole Life Costing)
Whole life asset management (WLC) considers all costs associated with acquiring, operating, maintaining, and disposing of an asset.
This includes:
Purchase price
Operating and maintenance costs
Energy consumption, training, downtime, disposal
Therefore, Option B is correct — WLC takes a complete, long-term view, not just purchase price.
Relevant L4M2 references:
“Whole life costing and total cost of ownership (TCO)”
“Using WLC in capital investment decisions”
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