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
Costs classification at creation of logistic chains of delivery
MAGAZINE №2 (64) April 2015
AUTHOR SOKOLOV V.K., BORODULINA S.A.
CATEGORY Terminology in Logistics and SCM Transportation Providers of logistics services
ABSTRACT
Currently, there is instability in the transport and logistics market. Some logistics operators using customer incompetence, lack of a unified methodology for costs assessing try to use highest tariffs. Development of logistics costs classification is a very important issue at the moment.
Each transport and logistics company uses its own approach to the definition and calculation of these costs. Logistics costs classification is very important for cargo owners as it can be the basis for determining the types, sources and the value the costs for logistics operations. The article contains the results of a study on the composition of logistics costs for each participant in the supply chain: the sea carrier, warehouse, freight forwarders, road transport.
The authors systematized costs (as general, individual and specific groups for each member of the logistics chain), created logistics cost classification. Costs were grouped according to uniform operations in each of the groups. Authors justified the practical significance of the logistics costs classification. The article describes forwarder functions, its coordinating role in the delivery of cargo in the supply chain. The authors presented the forwarder logistics costs, justified for their own costs and expenses of forwarders clients.
Such a way the authors proved the importance of the logistics costs classification. The authors also pointed out the possibility of cost savings that will be used in further studies.
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Economic order quantity model: analysis and directions of further development
MAGAZINE №3 (62) June 2014
AUTHOR LUKINSKIY V.S., LUKINSKIY V.V., VOROBYOVA N.I.
CATEGORY Inventory management Optimization and economic-mathematical modeling Reviews and Analytics
ABSTRACT
At the moment world logistics costs equal to 14% of global GDP or about 10-12 trillion dollars per year. These figures costs associated with armaments, public health service and other important areas of human activity.
This means that the search of practical ways and development of effective mechanisms for reducing logistics costs is a major problem, the solving of which will improve efficiency and competitiveness of enterprises.
Analysis of a number of studies has shown that the most common model of inventory control is EOQ model. However, the main disadvantage of the majority of modified calculation EOQ models, which are discussed in scientific papers, is that they take into account only one or two of plenty of characteristics that allow getting rid of ideal prerequisites of classical model and improve the classical EOQ model. In addition, some modifications of the model are debatable and cannot be recommended for the calculations.
For generation of currently lacking modified EOQ models as well as for optimal EOQ model selection it was proposed to apply the morphological method of research of rational systems.
Morphological tables for generation of new EOQ models as well as algorithm for selection of the modified EOQ model which is the most appropriate to certain business situation were developed.
The complex of modified EOQ models that takes into account multiproduct simultaneous supplies, allocation of liabilities for the implementation of logistics operations between the parties of the simple supply chain, the value added in the price of goods when calculating storage costs and different options of calculation of storage costs was developed.
The obtained results of the study will allow forming a basis of real innovative solutions to reduce logistics costs and improve the competitiveness of enterprises.
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