IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Rough-Cut Cost Estimation in a Capacitated Environment

Rough-Cut Cost Estimation in a Capacitated Environment
View Sample PDF
Author(s): Mark Eklin (Israel Institute of Technology, Israel), Yohanan Arzi (ORT Braude College, Israel)and Avraham Shtub (Israel Institute of Technology, Israel)
Copyright: 2010
Pages: 19
Source title: IT Outsourcing: Concepts, Methodologies, Tools, and Applications
Source Author(s)/Editor(s): Kirk St.Amant (East Carolina University, USA)
DOI: 10.4018/978-1-60566-770-6.ch123

Purchase

View Rough-Cut Cost Estimation in a Capacitated Environment on the publisher's website for pricing and purchasing information.

Abstract

This article presents a deterministic model for rough-cut cost estimation in a capacitated madeto- order environment. We assume that a firm can execute each job either at its own shop or by outsourcing it. The model calculates the unit cost of each product while taking into account the shop floor rough-cut capacity planning, and by determining what to produce in the firm’s shop and what to outsource. In order to reduce run times, a greedy heuristic algorithm was developed. Comparison of the proposed model with a model that takes into account precedence between operations and with a traditional costing approach was conducted. The article gives insight on the affect of shop workload, machine loading, and outsourcing decisions on the product unit cost estimation.

Related Content

Donald Carpenter, Vijay Agrawal. © 2010. 18 pages.
Vanita Yadav, Rajen Gupta. © 2010. 10 pages.
Luke Ho, Anthony Atkins. © 2010. 21 pages.
Mahesh Raisinghani, Brandi Starr, Blake Hickerson, Marshelle Morrison, Michael Howard. © 2010. 21 pages.
Robin Qiu. © 2010. 18 pages.
Nicholas Beaumont. © 2010. 21 pages.
Shirish Srivastava, Thompson Teo, Partha S. Mohapatra. © 2010. 16 pages.
Body Bottom