Journal article
Product costing in the strategic formation of a supply chain
Annals of operations research, Vol.272(1), pp.389-427
01/2019
DOI: 10.1007/s10479-017-2463-x
Abstract
This study presents manufacturing and distribution network models for strategic supply chain planning. Where prices of intermediate products in the supply chain are not readily available, we study the influence on the formation of the supply chain of using either direct product costing or full absorption costing for setting internal prices. We develop a generalized Benders decomposition-based approach to solve the models. Problems representing a variety of scenarios that simulates different economic environments are solved. Our computational results show that the product costing method could influence the concentration of production activities at potential manufacturing locations, production and shipment quantities, product prices, and allocation of profits in the supply chain.
Details
- Title: Subtitle
- Product costing in the strategic formation of a supply chain
- Creators
- Renato de Matta - 0000 0004 1936 8294 grid.214572.7 Department of Management Sciences University of Iowa Iowa City IA 52242-1000 USA
- Resource Type
- Journal article
- Publication Details
- Annals of operations research, Vol.272(1), pp.389-427
- Publisher
- Springer US
- DOI
- 10.1007/s10479-017-2463-x
- ISSN
- 0254-5330
- eISSN
- 1572-9338
- Language
- English
- Date published
- 01/2019
- Academic Unit
- Business Analytics
- Record Identifier
- 9984083856602771
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