Search results for: cost drivers

Authors: M. Mahdavi, E. Mahdavi

Abstract:

In this research, STNEP is being studied considering network adequacy and limitation of investment cost by decimal codification genetic algorithm (DCGA). The goal is obtaining the maximum of network adequacy with lowest expansion cost for a specific investment. Finally, the proposed idea is applied to the Garvers 6-bus network. The results show that considering the network adequacy for solution of STNEP problem is caused that among of expansion plans for a determined investment, configuration which has relatively lower expansion cost and higher adequacy is proposed by GA based method. Finally, with respect to the curve of adequacy versus expansion cost it can be said that more optimal configurations for expansion of network are obtained with lower investment costs.

Keywords: TNEP, Network Adequacy, Investment Cost, GA

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Authors: M. Arja, G. Sauce, B. Souyri

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Overall cost is a significant consideration in any decision-making process. Although many studies were carried out on overall cost in construction, little has treated the uncertainties of real life cycle development. On the basis of several case studies, a feedback process was performed on the historical data of studied buildings. This process enabled to identify some factors causing uncertainty during the operational period. As a result, the research proposes a new method for assessing the overall cost during a part of the building-s life cycle taking account of the building actual value, its end-of-life value and the influence of the identified life cycle uncertainty factors. The findings are a step towards a higher level of reliability in overall cost evaluation taking account of some usually unexpected uncertainty factors.

Keywords: Asset management, building life cycle uncertainty, building value, overall cost.

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Authors: K. M. Oba

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The transportation modelling technique was adopted in the solution of the problem of transportation of Plaster of Paris (POP) cement from three supply locations (construction materials markets) to three demand locations (construction sites) in Port Harcourt. The study was carried out for 40 kg bags of POP cement fully loaded on 600 bags per truck from the three selected construction materials markets in Port Harcourt. The costs of transporting the POP cement were determined and subjected to the North-West Corner, Least Cost, and Vogel’s approximation methods to determine the initial feasible solution. Of the three results, the Least Cost Method turned out to have the lowest cost. Using the Stepping Stone Method, the optimum shipping cost was finally attained after two successive iterations. The optimum shipping cost was calculated to be $1,690 or ₦1,774,500 as of October 2023. As a result of this study, the application of transportation modelling can boost the effective management of the transportation of POP cement in construction projects.

Keywords: Cost of POP cement, management of transportation, optimization of shipping cost, Plaster of Paris, transportation model.

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Authors: Wei Lo, Ming-En Kuo

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While to minimize the overall project cost is always one of the objectives of construction managers, to obtain the maximum economic return is definitely one the ultimate goals of the project investors. As there is a trade-off relationship between the project time and cost, and the project delivery time directly affects the timing of economic recovery of an investment project, to provide a method that can quantify the relationship between the project delivery time and cost, and identify the optimal delivery time to maximize economic return has always been the focus of researchers and industrial practitioners. Using genetic algorithms, this study introduces an optimization model that can quantify the relationship between the project delivery time and cost and furthermore, determine the optimal delivery time to maximize the economic return of the project. The results provide objective quantification for accurately evaluating the project delivery time and cost, and facilitate the analysis of the economic return of a project.

Keywords: Time-Cost Trade-Off, Genetic Algorithms, Resource Integration, Economic return.

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Authors: A. K. Jain, M. C. Paliwal

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Construction cost in India is increasing at around 50 per cent over the average inflation levels. It have registered increase of up to 15 per cent every year, primarily due to cost of basic building materials such as steel, cement, bricks, timber and other inputs as well as cost of labour. As a result, the cost of construction using conventional building materials and construction is becoming beyond the affordable limits particularly for low-income groups of population as well as a large cross section of the middle - income groups. Therefore, there is a need to adopt cost-effective construction methods either by up-gradation of traditional technologies using local resources or applying modern construction materials and techniques with efficient inputs leading to economic solutions. This has become the most relevant aspect in the context of the large volume of housing to be constructed in both rural and urban areas and the consideration of limitations in the availability of resources such as building materials and finance. This paper makes an overview of the housing status in India and adoption of appropriate and cost effective technologies in the country.

Keywords: Appropriate, Cost Effective, Ekra, Five year plan, Poverty

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Authors: F. H. Abanda, B. Kamsu-Foguem, J. H. M. Tah

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Construction cost estimation is one of the most important aspects of construction project design. For generations, the process of cost estimating has been manual, time-consuming and error-prone. This has partly led to most cost estimates to be unclear and riddled with inaccuracies that at times lead to over- or underestimation of construction cost. The development of standard set of measurement rules that are understandable by all those involved in a construction project, have not totally solved the challenges. Emerging Building Information Modelling (BIM) technologies can exploit standard measurement methods to automate cost estimation process and improve accuracies. This requires standard measurement methods to be structured in ontological and machine readable format; so that BIM software packages can easily read them. Most standard measurement methods are still text-based in textbooks and require manual editing into tables or Spreadsheet during cost estimation. The aim of this study is to explore the development of an ontology based on New Rules of Measurement (NRM) commonly used in the UK for cost estimation. The methodology adopted is Methontology, one of the most widely used ontology engineering methodologies. The challenges in this exploratory study are also reported and recommendations for future studies proposed.

Keywords: BIM, Construction projects, Cost estimation, NRM, Ontology.

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Authors: Ender Bulgun, Arzu Vuruskan

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Apparel product development is an important stage in the life cycle of a product. Shortening this stage will help to reduce the costs of a garment. The aim of this study is to examine the production parameters in knitwear apparel companies by defining the unit costs, and developing a software to calculate the unit costs of garments and make the cost estimates. In this study, with the help of a questionnaire, different companies- systems of unit cost estimating and cost calculating were tried to be analyzed. Within the scope of the questionnaire, the importance of cost estimating process for apparel companies and the expectations from a new cost estimating program were investigated. According to the results of the questionnaire, it was seen that the majority of companies which participated to the questionnaire use manual cost calculating methods or simple Microsoft Excel spreadsheets to make cost estimates. Furthermore, it was discovered that many companies meet with difficulties in archiving the cost data for future use and as a solution to that problem, it is thought that prior to making a cost estimate, sub units of garment costs which are fabric, accessory and the labor costs should be analyzed and added to the database of the programme beforehand. Another specification of the cost estimating unit prepared in this study is that the programme was designed to consist of two main units, one of which makes the product specification and the other makes the cost calculation. The programme is prepared as a web-based application in order that the supplier, the manufacturer and the customer can have the opportunity to communicate through the same platform.

Keywords: Apparel, cost estimating, design archive.

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Authors: Zayed Freah Zeadat

Abstract:

The wellbeing of urban dwellers is strongly associated with the quality and quantity of green infrastructure. Nevertheless, urban green infrastructure is still lagging in many Arab cities, and Jordan is no exception. The capital city of Jordan, Amman, is becoming more urban dense with limited green spaces. The unplanned urban growth in Amman has caused several environmental problems such as urban heat islands, air pollution and lack of green spaces. This study aims to investigate the most suitable drivers to leverage the implementation of urban green infrastructure in Jordan through qualitative and quantitative analysis. The qualitative research includes an extensive literature review to discuss the most common drivers used internationally to promote urban green infrastructure implementation in the literature. The quantitative study employs a questionnaire survey to rank the suitability of each driver. Consultants, contractors and policymakers were invited to fill the research questionnaire according to their judgments and opinions. Relative Importance Index has been used to calculate the weighted average of all drivers and the Kruskal-Wallis test to check the degree of agreement among groups. This study finds that research participants agreed that indirect financial incentives (i.e., tax reductions, reduction in stormwater utility fee, reduction of interest rate, density bonus etc.) are the most effective incentive policy whilst granting sustainability certificate policy is the least effective driver to ensure widespread of UGI is elements in Jordan.

Keywords: sustainable development, urban green infrastructure, relative importance index, urban Jordan

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Authors: D. Triantakonstantis, D. Stathakis

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Urban areas have been expanded throughout the globe. Monitoring and modelling urban growth have become a necessity for a sustainable urban planning and decision making. Urban prediction models are important tools for analyzing the causes and consequences of urban land use dynamics. The objective of this research paper is to analyze and model the urban change, which has been occurred from 1990 to 2000 using CORINE land cover maps. The model was developed using drivers of urban changes (such as road distance, slope, etc.) under an Artificial Neural Network modelling approach. Validation was achieved using a prediction map for 2006 which was compared with a real map of Urban Atlas of 2006. The accuracy produced a Kappa index of agreement of 0,639 and a value of Cramer's V of 0,648. These encouraging results indicate the importance of the developed urban growth prediction model which using a set of available common biophysical drivers could serve as a management tool for the assessment of urban change.

Keywords: Artificial Neural Networks, CORINE, Urban Atlas, Urban Growth Prediction.

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Authors: Bita Mashayekhi, Mohammad Ara

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The purpose of this study is to provide some empirical evidence about implementing Activity-Based Costing (ABC) in the hospitality industry in Iran. For this purpose, we consider the Tabriz International Hotel as our sample hotel and then gather the relevant data from its cost accounting system in 2012. Then, we use ABC as our costing method and compare the cost of each service unit with that cost which had been extracted for the traditional costing method. The results show a different cost per unit for two methods. Also, because of its more precise and detailed provided information, an ABC system facilitates the decision-making process for managers on decisions related to profitability analysis, budgeting, pricing, and so on.

Keywords: Activity-based costing, activity, cost driver, hospitality industry.

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Authors: Dezie L. Warganegara, Dewi Tamara

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The objectives of this study is to investigate the existence of the sticky cost behavior of firms listed in the Indonesia Stock Exchange (IDX) and to find evidence on the effects of sticky operating expenses (SG&A expenses) on profitability of firms. For the first objective, this study finds that the sticky cost behavior does exist. For the second objective, this study finds that the stickier the operating expenses the lesser future profitability of the firms. This study concludes that sticky cost affects negatively to the performance and, therefore, firms should include flexibility in designing the cost structure of their firms.

Keywords: Operating Expenses, Profitability, SG&A, Sticky Costs, Indonesia Stock Exchange (IDX).

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Authors: F. Simba, L. Trojer, N.H. Mvungi, B.M. Mwinyiwiwa, E.M. Mjema

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Rural areas of Tanzania are still disadvantaged in terms of diffusion of IP-based services; this is due to lack of Information and Communication Technology (ICT) infrastructures, especially lack of connectivity. One of the limitations for connectivity problems in rural areas of Tanzania is the high cost to establish infrastructures for IP-based services [1-2]. However the cost of connectivity varies from one technology to the other and at the same time, the cost is also different from one operator (service provider) to another within the country. This paper presents development of software system to calculate cost of connectivity to rural areas of Tanzania. The system is developed to make an easy access of connectivity cost from different technologies and different operators. The development of the calculator follows the V-model software development lifecycle. The calculator is used to evaluate the economic viability of different technologies considered as being potential candidates to provide rural connectivity. In this paper, the evaluation is based on the techno-economic analysis approach.

Keywords: rural, connectivity, cost, V-model, techno economic analysis.

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Authors: Tomáš Brabenec

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Cost contribution arrangements (CCAs) and Cost sharing agreements (CCAs) belong to the tools of modern finance management. Costs spend by associated enterprises on developing producing or obtaining assets, services or rights (in general - benefits) are used for tax optimizing too. The main purpose of joint research and development, producing or obtaining benefits is to lower these costs as much as possible or to maximize the benefits. In this article is mentioned the problematic of transfer pricing and arm's length principle with connection of CCAs, CSAs. Next, there is mentioned how to settle participation shares of the total cost and benefits contributions with respect to the OECD Transfer pricing for MNEs Guidelines and with respect to other significant regulations.

Keywords: Arm's length principle, Cost contribution arrangements, Cost sharing agreements, Reasonable anticipated benefits, Relevant costs, Transfer prices.

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Authors: Yibo Fan, Takeshi Ikenaga, Yukiyasu Tsunoo, Satoshi Goto

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This paper proposes a low-cost reconfigurable architecture for AES algorithm. The proposed architecture separates SubBytes and MixColumns into two parallel data path, and supports different bit-width operation for this two data path. As a result, different number of S-box can be supported in this architecture. The throughput and power consumption can be adjusted by changing the number of S-box running in this design. Using the TSMC 0.18μm CMOS standard cell library, a very low-cost implementation of 7K Gates is obtained under 182MHz frequency. The maximum throughput is 360Mbps while using 4 S-Box simultaneously, and the minimum throughput is 114Mbps while only using 1 S-Box

Keywords: AES, Reconfigurable architecture, low cost

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Authors: Bundit Pungnirund

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This research aimed to investigate the relationship between attitude towards marketing mix, brand image and consumer behavior of the passengers of low-cost airlines service. This study employed by quantitative research and the questionnaire was used to collect the data from 400 sampled of the passengers who have ever used the low-cost airline services based in Bangkok, Thailand. The descriptive statistics and Pearson’s correlation analysis were used to analyze data. The research results revealed that the attitude of the marketing mix of the low-cost airline services including product, price, place, promotion and process had related to the consumer behavior on the aspects of duration of service and frequency of service. While, the brand image of the low cost airline including the characteristics of organization, service quality and company identity had related to the consumer behavior on duration of service, frequency of service and cost of service at the significant statistically acceptable levels.

Keywords: Brand image, consumer behavior, low-cost airlines, marketing mix.

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Authors: Rosie Borup, Hanifa Shah

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This paper aims to describe how student satisfaction is measured for work-based learners as these are non-traditional learners, conducting academic learning in the workplace, typically their curricula have a high degree of negotiation, and whose motivations are directly related to their employers- needs, as well as their own career ambitions. We argue that while increasing WBL participation, and use of SSD are both accepted as being of strategic importance to the HE agenda, the use of WBL SSD is rarely examined, and lessons can be learned from the comparison of SSD from a range of WBL programmes, and increased visibility of this type of data will provide insight into ways to improve and develop this type of delivery. The key themes that emerged from the analysis of the interview data were: learners profiles and needs, employers drivers, academic staff drivers, organizational approach, tools for collecting data and visibility of findings. The paper concludes with observations on best practice in the collection, analysis and use of WBL SSD, thus offering recommendations for both academic managers and practitioners.

Keywords: Student satisfaction data, work based learning, employer engagement, NSS.

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Authors: A. Khanal, A. Osareh, G. Lebby

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Wind energy offers a significant advantage such as no fuel costs and no emissions from generation. However, wind energy sources are variable and non-dispatchable. The utility grid is able to accommodate the variability of wind in smaller proportion along with the daily load. However, at high penetration levels, the variability can severely impact the utility reserve requirements and the cost associated with it. In this paper the impact of wind energy is evaluated in detail in formulating the total utility cost. The objective is to minimize the overall cost of generation while ensuring the proper management of the load. Overall cost includes the curtailment cost, reserve cost and the reliability cost, as well as any other penalty imposed by the regulatory authority. Different levels of wind penetrations are explored and the cost impacts are evaluated. As the penetration level increases significantly, the reliability becomes a critical question to be answered. Here we increase the penetration from the wind yet keep the reliability factor within the acceptable limit provided by NERC. This paper uses an economic dispatch (ED) model to incorporate wind generation into the power grid. Power system costs are analyzed at various wind penetration levels using Linear Programming. The goal of this study is show how the increases in wind generation will affect power system economics.

Keywords: Balancing Reserves, Optimization, Wind Energy.

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Authors: H. L. Yim, S. H. Lee, S. K. Yoo, J. J. Kim

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This study proposes a materials procurement contracts model to which the zero-cost collar option is applied for heading price fluctuation risks in construction.The material contract model based on the collar option that consists of the call option striking zone of the construction company(the buyer) following the materials price increase andthe put option striking zone of the material vendor(the supplier) following a materials price decrease. This study first determined the call option strike price Xc of the construction company by a simple approach: it uses the predicted profit at the project starting point and then determines the strike price of put option Xp that has an identical option value, which completes the zero-cost material contract.The analysis results indicate that the cost saving of the construction company increased as Xc decreased. This was because the critical level of the steel materials price increasewas set at a low level. However, as Xc decreased, Xpof a put option that had an identical option value gradually increased. Cost saving increased as Xc decreased. However, as Xp gradually increased, the risk of loss from a construction company increased as the steel materials price decreased. Meanwhile, cost saving did not occur for the construction company, because of volatility. This result originated in the zero-cost features of the two-way contract of the collar option. In the case of the regular one-way option, the transaction cost had to be subtracted from the cost saving. The transaction cost originated from an option value that fluctuated with the volatility. That is, the cost saving of the one-way option was affected by the volatility. Meanwhile, even though the collar option with zero transaction cost cut the connection between volatility and cost saving, there was a risk of exercising the put option.

Keywords: Construction materials, Supply chain management, Procurement, Payment, Collar option

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Authors: G. Haupt

Abstract:

Existing literature ondesign reasoning seems to give either one sided accounts on expert design behaviour based on internal processing. In the same way ecological theoriesseem to focus one sidedly on external elementsthat result in a lack of unifying design cognition theory. Although current extended design cognition studies acknowledge the intellectual interaction between internal and external resources, there still seems to be insufficient understanding of the complexities involved in such interactive processes. As such,this paper proposes a novelmulti-directional model for design researchers tomap the complex and dynamic conduct controlling behaviour in which both the computational and ecological perspectives are integrated in a vertical manner. A clear distinction between identified intentional and emerging physical drivers, and relationships between them during the early phases of experts- design process, is demonstrated by presenting a case study in which the model was employed.

Keywords: External representation, early phases, extended design cognition, internal processes and external drivers, conduct controlling behaviour.

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Authors: Balimu Mwiya, Mundia Muya, Chabota Kaliba, Peter Mukalula

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Factors affecting construction unit cost vary depending on a country’s political, economic, social and technological inclinations. Factors affecting construction costs have been studied from various perspectives. Analysis of cost factors requires an appreciation of a country’s practices. Identified cost factors provide an indication of a country’s construction economic strata. The purpose of this paper is to identify the essential factors that affect unit cost estimation and their breakdown using artificial neural networks. Twenty five (25) identified cost factors in road construction were subjected to a questionnaire survey and employing SPSS factor analysis the factors were reduced to eight. The 8 factors were analysed using neural network (NN) to determine the proportionate breakdown of the cost factors in a given construction unit rate. NN predicted that political environment accounted 44% of the unit rate followed by contractor capacity at 22% and financial delays, project feasibility and overhead & profit each at 11%. Project location, material availability and corruption perception index had minimal impact on the unit cost from the training data provided. Quantified cost factors can be incorporated in unit cost estimation models (UCEM) to produce more accurate estimates. This can create improvements in the cost estimation of infrastructure projects and establish a benchmark standard to assist the process of alignment of work practises and training of new staff, permitting the on-going development of best practises in cost estimation to become more effective.

Keywords: Construction cost factors, neural networks, roadworks, Zambian Construction Industry.

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Authors: Nurul Diyana, A., Zainul Abidin, N.

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Social cognitive theory explains the power to inaugurate change is determined by the mutual influence of personal proclivity and social factors which will shape ones- motivations and expectations. In construction industry, green concept offers an opportunity to leave a lighter footprint on the environment. This opportunity, however, has not been fully grasped by many countries. As such, venturing into green construction for many practitioners would be their maiden experience. Decision to venture into new practice such as green construction will be influenced by certain drivers. This paper explores these drivers which is further expanded into motivational factors and later becomes the platform upon which expectation for green construction stands. This theoretical concept of motivation and expectations, which is adapted from social cognitive theory, focus on developers- view because of their crucial role in green application. This conceptual framework, which serves as the basis for further research, will benefit the industry as it elucidate cognitive angles to attract more new entrants to green business.

Keywords: Developers, Green Construction, Motivation, Expectation, Social Cognitive Theory.

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Authors: Hamide Özyürek, Metin Yılmaz

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Standard processes, similar and limited production lines, the production of high direct costs will be more accurate than the use of parts of the traditional cost systems in the literature. However, direct costs, overhead expenses, in turn, decrease the burden of increasingly sophisticated production facilities, a situation that led the researchers to look for the cost of traditional systems of alternative techniques. Variety cost management approaches for example Total quality management (TQM), just-in-time (JIT), benchmarking, kaizen costing, targeting cost, life cycle costs (LLC), activity-based costing (ABC) value engineering have been introduced. Management and cost applications have changed over the past decade and will continue to change. Modern cost systems can provide relevant and accurate cost information. These methods provide the decisions about customer, product and process improvement. The aim of study is to describe and explain the adoption and application of costing systems in SME. This purpose reports on a survey conducted during 2014 small and medium sized enterprises (SME) in Ankara. The survey results were evaluated using SPSS18 package program.

Keywords: Cost Accounting, Costing, Modern Costing Systems, Managerial Accounting.

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Authors: Hadi Sadoghi Yazdi, Tahereh Royani, Mehri Sadoghi Yazdi, Sohrab Effati

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In this paper, a new version of support vector regression (SVR) is presented namely Fuzzy Cost SVR (FCSVR). Individual property of the FCSVR is operation over fuzzy data whereas fuzzy cost (fuzzy margin and fuzzy penalty) are maximized. This idea admits to have uncertainty in the penalty and margin terms jointly. Robustness against noise is shown in the experimental results as a property of the proposed method and superiority relative conventional SVR.

Keywords: Support vector regression, Fuzzy input, Fuzzy cost.

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Authors: Farhad Kolahan, Vahid Kayvanfar

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In this paper we address a multi-objective scheduling problem for unrelated parallel machines. In unrelated parallel systems, the processing cost/time of a given job on different machines may vary. The objective of scheduling is to simultaneously determine the job-machine assignment and job sequencing on each machine. In such a way the total cost of the schedule is minimized. The cost function consists of three components, namely; machining cost, earliness/tardiness penalties and makespan related cost. Such scheduling problem is combinatorial in nature. Therefore, a Simulated Annealing approach is employed to provide good solutions within reasonable computational times. Computational results show that the proposed approach can efficiently solve such complicated problems.

Keywords: Makespan, Parallel machines, Scheduling, Simulated Annealing

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Authors: Shih-Hsu Wang, Yuan-Yuan Cheng, Ming-Tsung Lee, Wei-Chih Wang

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Determining reasonable fees is the main objective of designing the cost estimation and payment systems for consultant contracts. However, project clients utilize different cost estimation and payment systems because of their varying views on the reasonableness of consultant fees. This study reviews the cost estimation and payment systems of consultant contracts for five countries, including the US (Washington State Department of Transportation), Japan (Ministry of Land, Infrastructure, Transport and Tourism), China (Engineering Design Charging Standard) and UK (Her Majesty's Treasure). Specifically, this work investigates the budgeting process, contractor selection method, contractual price negotiation process, cost review, and cost-control concept of the systems used in these countries. The main finding indicates that that project client-s view on whether the fee is high will affect the way he controls it. In the US, the fee is commonly considered to be high. As a result, stringent auditing system (low flexibility given to the consultant) is then applied. In the UK, the fee is viewed to be low by comparing it to the total life-cycle project cost. Thus, a system that has high flexibility in budgeting and cost reviewing is given to the consultant. In terms of the flexibility allowed for the consultant, the systems applied in Japan and China fall between those of the US and UK. Both the US and UK systems are helpful in determining a reasonable fee. However, in the US system, rigid auditing standards must be established and additional cost-audit manpower is required. In the UK system, sufficient historical cost data should be needed to evaluate the reasonableness of the consultant-s proposed fee

Keywords: Consultant Services, Cost Estimation and Payment System, Payment Flexibility, Cost-control Concept

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Authors: Jamshaid ur Rehman, Shahida Wizarat

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The principal focus of this study is on the measurement and analysis of labor learnings in Pakistan. The study at the aggregate economy level focus on the labor productivity movements and at large-scale manufacturing level focus on the cost structure, with isolating the contribution of the learning curve. The analysis of S-shaped curve suggests that learnings are only below one half of aggregate learning curve and other half shows the retardation in learning, hence retardation in productivity movements. The study implies the existence of learning economies in term of cost reduction that is input cost per unit produced decreases by 0.51 percent every time the cumulative production output doubles.

Keywords: Cost, Inflection Point, Learning Curve, Minima, Maxima, and Productivity

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Authors: Rudi Kurniawan Arief

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Manufacturing cost and setup time are the hot topics to improve in Metal Stamping industry because material and components price are always rising up while costumer requires to cut down the component price year by year. The Single Minute Exchange of Die (SMED) is one of many methods to reduce waste in stamping industry. The Japanese Quick Die Change (QDC) dies system is one of SMED systems that could reduce both of setup time and manufacturing cost. However, this system is rarely used in stamping industries. This paper will analyze how deep the QDC dies system could reduce setup time and the manufacturing cost. The research is conducted by direct observation, simulating and comparing of QDC dies system with conventional dies system. In this research, we found that the QDC dies system could save up to 35% of manufacturing cost and reduce 70% of setup times. This simulation proved that the QDC die system is effective for cost reduction but must be applied in several parallel production processes.

Keywords: Press die, metal stamping, quick die change, QDC system, single minute exchange die, manufacturing cost saving, SMED.

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Authors: G. C. Mahata, A. Goswami

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This paper deals with infinite time horizon fuzzy Economic Order Quantity (EOQ) models for deteriorating items with  stock dependent demand rate and nonlinear holding costs by taking deterioration rate θ0 as a triangular fuzzy number  (θ0 −δ 1, θ0, θ0 +δ 2), where 1 2 0 0 <δ ,δ <θ are fixed real numbers. The traditional parameters such as unit cost and ordering  cost have been kept constant but holding cost is considered to vary. Two possibilities of variations in the holding cost function namely, a non-linear function of the length of time for which the item is held in stock and a non-linear function of the amount of on-hand inventory have been used in the models. The approximate optimal solution for the fuzzy cost functions in both these cases have been obtained and the effect of non-linearity in holding costs is studied with the help of a numerical example.

Keywords: Inventory Model, Deterioration, Holding Cost, Fuzzy Total Cost, Extension Principle.

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Authors: Heng Ma

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Third-party warehousing logistics has an important role in the development of external logistics. At present, the third-party logistics in our country is still a new industry, the accounting system has not yet been established, the current financial accounting system of third-party warehousing logistics is mainly in the traditional way of thinking, and only able to provide the total cost information of the entire enterprise during the accounting period, unable to reflect operating indirect cost information. In order to solve the problem of third-party logistics industry cost information distortion, improve the level of logistics cost management, the paper combines theoretical research and case analysis method to reflect cost allocation by building third-party logistics costing model using Time-Driven Activity-Based Costing(TDABC), and takes S company as an example to account and control the warehousing logistics cost.Based on the idea of “Products consume activities and activities consume resources”, TDABC put time into the main cost driver and use time-consuming equation resources assigned to cost objects. In S company, the objects focuses on three warehouse, engaged with warehousing and transportation (the second warehouse, transport point) service. These three warehouse respectively including five departments, Business Unit, Production Unit, Settlement Center, Security Department and Equipment Division, the activities in these departments are classified by in-out of storage forecast, in-out of storage or transit and safekeeping work. By computing capacity cost rate, building the time-consuming equation, the paper calculates the final operation cost so as to reveal the real cost.The numerical analysis results show that the TDABC can accurately reflect the cost allocation of service customers and reveal the spare capacity cost of resource center, verifies the feasibility and validity of TDABC in third-party logistics industry cost accounting. It inspires enterprises focus on customer relationship management and reduces idle cost to strengthen the cost management of third-party logistics enterprises.

Keywords: Third-party logistics enterprises, TDABC, cost management, S company.

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Authors: Mihai Liviu Despa

Abstract:

The paper tackles the topic of determining the cost of innovation in software development projects. Innovation can be achieved either in a planned or unplanned manner. The paper approaches the scenarios were innovation is planned for. As a starting point an innovative software development project is analyzed. The project is depicted step by step as it was implemented, from inception to delivery. Costs that are proprietary to innovation in software development are isolated based on the author’s personal experience in managing the above mentioned project. Innovation costs components identified by the author are then validated using open discussions with software development professionals and projects managers on LinkedIn groups. In order to receive relevant feedback only groups that focus on software development and innovation management are targeted. Additional innovation cost components suggested by software development professionals and projects managers are also considered. Based on the identified cost components an indicator is built. The indicator is meant to formalize the process of determining the cost of innovation in a software development project. The indicator aggregates all the innovation cost components that are identified in the research process. The process of calculating each cost component is also described. Conclusions are formulated and new related research topics are submitted for debate.

Keywords: Innovation cost, IT project management, software development.

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