Supply chain cost reduction by implementing integrated activity based costing and data envelopment analysis: A case study

Author

Yanpirat, Patcharaporn ; Choatheitmanut, Akrapong

Author_Institution

Dept. of Ind. Eng., Kasetsart Univ., Bangkok, Thailand

fYear

2014

fDate

23-25 June 2014

Firstpage

1

Lastpage

10

Abstract

The objective of this paper is to propose an alternative method for improving the supply chain performance in terms of supply chain cost (SSC) reduction. DEA-based performance measurement was implemented. SSC was estimated by employing the activity-based costing (ABC) method. The proposed method was verified by a case-based application of an ore dressing company in Thailand. In addition, value stream mapping of lean management was employed to improve performance. The results revealed performance improvement with a significant supply chain cost reduction.

Keywords

data envelopment analysis; supply chain management; supply chains; ABC method; DEA-based performance measurement; SSC reduction; activity-based costing; case-based application; data envelopment analysis; integrated activity based costing; lean management; ore dressing company; supply chain cost reduction; supply chain performance; value stream mapping; Analytical models; Companies; Costing; Mathematical model; Measurement; Resource management; Supply chains; activity-based costing; data envelopment analysis; lean; performance measurement; stepwise DEA approach;

fLanguage

English

Publisher

ieee

Conference_Titel

Engineering, Technology and Innovation (ICE), 2014 International ICE Conference on

Conference_Location

Bergamo

Type

conf

DOI

10.1109/ICE.2014.6871596

Filename

6871596