PRICING INVESTMENT AND PRODUCTION ACTIVITIES FOR AN ADVANCED MANUFACTURING SYSTEM

摘要

ABSTRACT In this paper, an activity-based costing (ABC) system is described and a multi-period linear programming model is developed for a general investment decision problem related to advanced manufacturing systems. We newly interpret an accounting value associated with each manufacturing activity and derive an economic implication of the dual model in this paper. The economic interpretation of the dual formulation of ABC systems is useful for many managerial decision areas such as justifying activity costs already assigned, identifying activity investment opportunities, measuring an activity performance and productivity. A case example of planning for a robotic cellular manufacturing system (CMS) is given.