Optimisation approach to target costing under uncertainty with application to ICT-service
| Autor: | Denis M. Becker, Alexei A. Gaivoronski |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
021103 operations research
Product cost management Operations research Computer science Management science Total absorption costing business.industry Strategy and Management 05 social sciences 0211 other engineering and technologies Cost accounting 02 engineering and technology Management Science and Operations Research Industrial and Manufacturing Engineering Cost driver 0502 economics and business New product development Process costing business Activity-based costing 050203 business & management Target costing |
| Zdroj: | International Journal of Production Research |
| ISSN: | 1366-588X 0020-7543 |
| DOI: | 10.1080/00207543.2016.1275870 |
| Popis: | Target costing is a modern approach applied during product development that defines cost targets for products and its components. These cost targets are driven by customer requirements and achievable revenues. The intention of this paper is the integration of target costing with modern concepts of modelling uncertainty and management of risk based on optimisation. Contrary to the traditional focus of target costing on cost targets, this paper prefers a strategy for achieving a target profit. Moreover, in this paper target costing is understood as a continuous process with incremental changes of cost drivers, product and component design as well as product prices. Therefore, the change in costs and profit with respect to aforementioned control parameters is modelled by linear approximations. Hence, improved decisions concerning design and prices are derived by linear programming models. In practice, information concerning product and component costs, demand or customer preferences are not given with certainty. Therefore, we apply a stochastic programming approach to manage the risk inherent in the target costing process. After a general presentation, we apply our approach to the provision of an information and communication technology service where the level of uncertainty is considerable. LOCKED until 16.1.2018 due to copyright restrictions. This is an [Accepted Manuscript] of an article published by Taylor & Francis in [International Journal of Production Research] on [16 Jan 2017], available at http://www.tandfonline.com/doi/full/10.1080/00207543.2016.1275870 |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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