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ACTIVITY-BASED COSTING FOR VEHICLE ROUTING PROBLEMS

Activity-based costing (ABC) is a costing model that identifies activity costs in an organisation. It assigns the cost of activity resources to generate the actual cost of products in order to eliminateunprofitable products and to lowerthe prices of overpriced ones. The vehicle routing problem (VRP)...

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Bibliographic Details
Published in:South African journal of industrial engineering 2010-11, Vol.21 (2), p.161-172
Main Authors: Moolman, A J, Koen, K, Westhuizen, J V D
Format: Article
Language:English
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Summary:Activity-based costing (ABC) is a costing model that identifies activity costs in an organisation. It assigns the cost of activity resources to generate the actual cost of products in order to eliminateunprofitable products and to lowerthe prices of overpriced ones. The vehicle routing problem (VRP) is a combinatorial optimisation and nonlinear programming problem that seeks to service a number of customers with a fleet of vehicles in a cost-effective manner. In this article we propose a new approach to determine costing for vehicle routing type problems. The methodology incorporates the predictive sharing of a resource by clustering producers. [PUBLICATION ABSTRACT]
ISSN:1012-277X
2224-7890
2224-7890