Use of the Activity Based Costing (ABC) for differentiation of account and control of logistic expenses
MAGAZINE №5 (94) October 2019
AUTHORS BAZHENOV M.B.
CATEGORY Analysis in logistics and SCM Controlling Modern concepts and technologies in logistics and SCM
ABSTRACT
The article is devoted to Activity Based Costing as one of the effective methods of logistic costs optimization in supply chain and business management. Modern ideas of management are based on the fact that business needs to be clearly defined, measured, analyzed and improved. The method of the Activity Based Costing (ABC) is one of possible methods.
Being one of the types of economic analysis, ABC, the essence of which lies in the object system research (products, process, structure), is aimed at optimizing the ratio between consumer properties and costs of its creation and usage.
ABC method proceeds from the fact that there are extra costs in any production, in any production, technical and economic system, and, subsequently, there is room for improvement. The task of the analysis is to find reserves to reduce production and operation of products costs on the basis of specific methods and research procedures. ABC method allows, when creating new products, to prevent extra costs and also to provide the level of expenses that does not exceed the established one, when using the created object, reduce or exclude economically unjustified costs.
Keywords: logistic costs Logistics Level Costs management accounting cost management cost cutting cost minimization activity based costing ABC business process Business Process Reengineering
Calculation of the Optimum Moment of Delivery Considering Demand Uncertainty
MAGAZINE №5(88) October 2018
AUTHOR MASLOV S.E. - Commercial Director, Prodimeks Ltd. (Moscow, Russia)
CATEGORY Optimization and mathematical modelling Inventory management
ABSTRACT
The article presents the results of numerical calculations carried out on the basis of the inventory management model previously developed and investigated by the author, namely, the model for determining the optimal point of delivery, considering the uncertainty of demand. As a criterion of efficiency, a criterion for minimizing integral costs is considered, considering the costs of surplus stocks and the costs of the lack of goods in the warehouse. As a law of distribution of a random volume of demand, a triangular distribution is considered, as one of the most applicable under conditions of insufficient statistical data. The considered economic-mathematical model allows to optimize the moment of delivery provided that risks are minimized, based on the statistical data on the demand for the goods for the previous period, or if such data are not available - use expert estimates. These data are sufficient for constructing probability distribution for a random quantity of demand.
The model allows to determine, with occasional demand, the day of delivery of a new consignment of goods in a certain volume, provided that the risks are minimized. In the case of a triangular distribution this optimization problem has an analytic solution counted by the formula.
Keywords:
Model of Delivery Time Determination in Conditions of Demand Uncertainty
MAGAZINE №4(87) August 2018
AUTHORS
KOSORUKOV O.A. - Doctor of Tech.Sci., Professor, Graduate School of Management and Innovation Lomonosov State Moscow University (Moscow, Russia)
MASLOV S.E. - Commercial Director, Prodimeks Ltd. (Moscow, Russia)
CATEGORY Optimization and mathematical modelling Inventory management
ABSTRACT
In Russia, most trading enterprises in the management of commodity stocks are guided by average demand and supply duration, and only some large companies use logistics processes modelling that increases the efficiency and effectiveness of their operations, reducing the costs of storage and deficit.
The article presents a model of inventory management, namely, determining the optimal delivery time, considering demand uncertainty. As a criterion of efficiency, a criterion of minimizing integral costs is considered, considering the costs of surplus stocks and the costs of the lack of goods in the warehouse. As a law of random demand volume distribution, triangular distribution is considered being one of the most applicable under conditions of insufficient statistical data. The economic-mathematical model under consideration allows to optimize the moment of delivery provided that risks are minimized, based on the statistical data on the demand for the goods over the previous period, or if such data are not available - to use expert estimates. The data are sufficient for constructing the probability distribution for a random quantity of demand.
The model allows, under random demand, to determine the day of delivery of a new shipment in a certain volume, provided that the risks are minimized. In the case of triangular distribution, this optimization problem has an analytic solution confined to formula evaluation.
Keywords:
Methods of Identifying Unproductive Empty Runs for the Railway Operator
MAGAZINE №4 (81) August 2017
AUTHORS
CATEGORY Transportation in logistics
ABSTRACT
The article presents a study on the identification of unproductive empty runs for the logistics company (orailway rolling stock operator). The authors have practically shown that in the sphere of railway logistics, it is advisable to use the developed methodology for the unproductive empty runs identification in order to improve the efficiency of company's assets. The described method allows considering the reasons for the unproductive empty runs formation, to identify the responsibility for their formation among the participants
of the railway transportation process and build a system to reduce their impact. The goal of the methods described is to reduce the logistics service providers costs. The efficiency of proposed method has practical value for improving the efficiency of business logistics
and its value is proved by introduction to business activity of the operator of railway rolling stock.
As partial criteria, some methods are considered:
■ the number of empty leg flights in the supply chain;
■ the freight charges cost;
■ turnover railcar assets;
■ eserves double operations.
The methodology presented in the article is of high importance when deciding on the integrated information system implementation
in the logistics company. The algorithm of the methodology can be used in solving the task of automation for transportation process.
Keywords:
