AccScience Publishing / SCMR / Online First / DOI: 10.36922/SCMR025410008
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ORIGINAL RESEARCH ARTICLE

A framework for performing total cost analysis

Björn Oskarsson1* ,  Maria Huge Brodin1
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1 Department of Management and Engineering, Linköping University, Linköping, Sweden
SCMR, 025410008 https://doi.org/10.36922/SCMR025410008
Received: 6 October 2025 | Revised: 21 October 2025 | Accepted: 3 December 2025 | Published online: 31 December 2025
© 2025 by the Author(s). This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution -Noncommercial 4.0 International License (CC-by the license) ( https://creativecommons.org/licenses/by-nc/4.0/ )
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Abstract

Cost considerations are critical within logistics and supply chain management. Since total cost analysis (TCA) is complex and implies many challenges, a systemised procedure for performing TCA is important to reach a good result. However, while literature in the supply chain management (SCM) field suggests what to include in a TCA, it does not provide explicit guidance on how to perform a TCA. The purpose of this paper is therefore to propose a framework for performing TCA in an SCM context. An initial framework was developed based on TCA literature. It was refined in two steps: First, through focus group discussions with academic scholars; and thereafter, through case studies in the retail sector. A 12-step framework for performing TCA is proposed, and challenges related to the steps are discussed. Although the framework is presented as a sequential process, iteration back and forth between the steps is recommended. While existing models for TCA in SCM focus on which cost elements to include, this framework suggests how to perform TCA in a systemised way with regard to complexity and challenges. Researchers can use the framework to support the TCA process and bring transparency to the results and how these are presented. The framework can also be helpful for practitioners conducting TCAs for decision-making, and for logistics and SCM scholars teaching TCA.

Keywords
Total cost analysis
Framework
Decision support
Cost management
Cost evaluation
Funding
This research was partly financed through a grant from The Swedish Retail and Wholesale Council (grant no.: Postdoc Stipendium 2020).
Conflict of interest
The authors declare they have no competing interests.
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