Activity-Based Costing and Management applied in a hybrid Decision Support System for order management

Authors:
Amir H. Khataie;Akif A. Bulgak;Juan J. Segovia
Affiliations:
Department of Mechanical and Industrial Engineering, Concordia University, 1515 St. Catherine St. West, Montréal (Québec), Canada, H3G 1M8 (office EV 13-105);Department of Mechanical and Industrial Engineering, Concordia University, 1515 St. Catherine St. West, Montréal (Québec), Canada, H3G 1M8 (office EV 13-105);John Molson School of Business, Concordia University, Montreal, Canada, 1450 Guy Street, Montréal (Québec), Canada, H3G 1M8 (office MB 14-229)
Venue:
Decision Support Systems
Year:
2011

Citing 5
Cited 0

On the portability of quantitative software estimation models

Information and Management
System dynamics modelling in supply chain management: research review

Proceedings of the 32nd conference on Winter simulation
Business Dynamics

Business Dynamics
Unifying business objects and system dynamics as a paradigm for developing decision support systems

Decision Support Systems
A Decision Support System for evaluating operations investments in high-technology business

Decision Support Systems

Quantified Score

Hi-index	0.00

Visualization

Abstract

This article introduces a new Cost Management and Decision Support System (DSS) applicable to Order Management. This model is better fit and compatible with today's competitive, and constantly changing, business environment. The presented Profitable-To-Promise (PTP) approach is a novel modeling approach which integrates System Dynamics (SD) simulation with Mixed-Integer Programming (MIP). This Order Management model incorporates Activity-Based Costing and Management (ABC/M) as a link to merge the two models, MIP and SD. This combination is introduced as a hybrid Decision Support System. Such a system can evaluate the profitability of each Order Fulfillment policy and generate valuable cost information. Unlike existing optimization-based DSS models, the presented hybrid modeling approach can perform on-time cost analysis. This will lead to better business decisions based on the updated information.