Assessing the Operational Cost of Offshore Sourcing Strategies

2002 ◽  
Vol 13 (2) ◽  
pp. 79-90 ◽  
Author(s):  
Robert H. Lowson
Keyword(s):  
Empirical Study ◽  
Acquisition Cost ◽  
Consumer Goods ◽  
Cost Model ◽  
Supply System ◽  
Operations Strategy ◽  
Operational Cost ◽  
Sourcing Strategies ◽  
The Cost

This paper reports on an empirical study to construct an objective and quantifiable method to assess the cost of sourcing from low wage, foreign suppliers. The work details development of a Total Acquisition Cost Model (TACM) that can be used to quantify the supply system costs associated with such sourcing strategies. In so doing, we explore the sourcing policies of a number of European and North American retailers operating in consumer goods sectors. A detailed case study demonstrates the potential inflexibility cost of offshore as opposed to onshore procurement. The research reveals how an understanding of these various metrics can be used to customize an operations strategy; reflecting the contingencies of the particular trading environment

An Assessment of the Belt and Road Performance

2019 ◽  
pp. 108-127
Author(s):  
Sedat Baştuğ ◽  
Turgay Battal
Keyword(s):  
Cost Model ◽  
Volume Ratio ◽  
Transport Cost ◽  
Primary Methods ◽  
Original Analysis ◽  
Multimodal Transport ◽  
Belt And Road ◽  
The Cost ◽  
The Belt And Road

The aim of the chapter is to propose a methodology to illustrate the cost and time components of door-to-door movement by One Belt and One Road (OBOR) and traditional routes alongside with modes. The study is concentrated on a case study and uses established multimodal transport cost model as a research framework. Interviews with industry practitioners and observation from primary methods of data collection. The use of multimodal transport cost model is common in the containerized cargoes. Hence, this study provides an original analysis for OBOR initiative. The volumes of OBOR shipments are large, with a high value-to-volume ratio. The research initially confirms that multimodal transport alternatives and modal combinations may successfully be applied and assess the performance of OBOR initiative.

scholarly journals Penetapan Harga Jual Produk Murabahah Studi Kasus di BMT Rama Salatiga

2013 ◽  
Vol 4 (2) ◽  
pp. 239
Author(s):  
Arna Asna Annisa
Keyword(s):  
Price Regulation ◽  
Selling Price ◽  
Operational Cost ◽  
Qualitative Design ◽  
The Cost ◽  
Descriptive Qualitative

This thesis is entitled Selling Price Regulation of Murabahah Product Case Study: BMT RAMA Salatiga. The objectives of this research are to describe 1) the execution of murabahah transaction at BMT RAMA Salatiga, 2) the method in deciding and applying the selling price of murabahah product, and 3) the policy of BMT on conducting its business based on Islamic principles. This research applied descriptive qualitative design and was conducted based on normative-juridical approach. The subjects of the research were the manager of BMT RAMA Salatiga and the costumers of BMT RAMA who were involved in murabahah transactions. The results show that the execution of murabahah transaction has not been applied well. Basically, wakalah aqad should place the costumer as the representative of BMT to get goods before the aqad is signed. It is applied in order to prevent gharar and to draw a distinction between syariah and conventional banking. In regulating its funding product BMT RAMA considers some components such as risks of fund, cost of fund, operational cost, annual profit target, annual funding target, and competition rates. However, the cost of fund component has the consequence of interests which need to be considered in determining murabahah margin. This consequence is absolutely inapropriate with MUI instruction no. 1 year 2004, which forbids interests because of its belonging to riba. Unfortunately, the DPS assistance is still insufficient on this matter.

Costs and benefits of using cross-docking in the retail supply chain

2019 ◽  
Vol 47 (4) ◽  
pp. 412-432 ◽  
Author(s):  
Yassine Benrqya
Keyword(s):  
Supply Chain ◽  
Cost Model ◽  
Costs And Benefits ◽  
Actual Case ◽  
Content Type ◽  
Cross Docking ◽  
The Cross ◽  
The Right ◽  
The Cost

Purpose The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the effects of using different typologies of cross-docking compared to traditional warehousing are investigated, taking into consideration an actual case study of a fast-moving consumer goods (FMCG) company and a major French retailer. Design/methodology/approach The research is based on a case study of an FMCG company and a major French retailer. The case study is used to develop a cost model and to identify the main cost parameters impacted by implementing the cross-docking strategy. Based on the cost model, a comparison of the main cost factors characterizing four different configurations is made. The configurations studied are, the traditional warehousing strategy (AS-IS configuration, the reference configuration for comparison), where both retailers and suppliers keep inventory in their warehouses; the cross-docking pick-by-line strategy, where inventory is removed from the retailer warehouse and the allocation and sorting are performed at the retailer distribution centre (DC) level (TO-BE1 configuration); the cross-docking pick-by-store strategy, where the allocation and sorting are done at the supplier DC level (TO-BE2 configuration); and finally a combination of cross-docking pick-by-line strategy and traditional warehousing strategy (TO-BE3 configuration). Findings The case study provides three main observations. First, compared to traditional warehousing, cross-docking with sorting and allocation done at the supplier level increases the entire supply chain cost by 5.3 per cent. Second, cross-docking with allocation and sorting of the products done at the retailer level is more economical than traditional warehousing: a 1 per cent reduction of the cost. Third, combining cross-docking and traditional warehousing reduces the supply chain cost by 6.4 per cent. Research limitations/implications A quantitative case study may not be highly generalisable; however, the findings form a foundation for further understanding of the reconfiguration of a retail supply chain. Originality/value This paper fills a gap by proposing a cost analysis based on a real case study and by investigating the costs and benefits of implementing different configurations in the retail supply chain context. Furthermore, the cost model may be used to help managers choose the right distribution strategy for their supply chain.

scholarly journals Strategic Capacity Management With Modular Manufacturing And Outsourcing: A Case Study

2011 ◽  
Vol 4 (4) ◽  
Author(s):  
Ignacio Garcia ◽  
Ray Venkataraman
Keyword(s):  
Business Strategy ◽  
Net Present Value ◽  
Cost Model ◽  
Flow Analysis ◽  
Cost Effective ◽  
Product Line ◽  
Fixed Costs ◽  
Course Of Action ◽  
The Cost

<p class="MsoBodyTextIndent2" style="text-align: justify; line-height: normal; text-indent: 0in; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-style: italic;">This paper proposes that downsizing an industrial manufacturer&rsquo;s capacity is a cost-effective strategy to reduce the cost of conversion while ensuring that adequate capacity is available to meet its business strategy requirements. A case study of a U.S. manufacturer of motors and other mechanical drive systems illustrates a proposed reduction in capacity that utilizes the development and implementation of a cost model to determine the best alternatives for a company whose capacity is not synchronized with its business strategy. The cost model for each alternative is investigated and compared against the &lsquo;Do nothing&rsquo; alternative, using net present value and cash flow analysis to build a case for the most effective course of action. The findings show the benefits of merging manufacturing by separating people, non-people, and fixed costs by facility, product line and product. In addition, the paper also illustrates the benefits of modular manufacturing and outsourcing as a way to further improve costs after the reduction of capacity.<span style="mso-spacerun: yes;">&nbsp; </span></span></p>

scholarly journals Application of the TDABC model in the logistics process using different capacity cost rates

2016 ◽  
Vol 9 (5) ◽  
pp. 1003 ◽  
Author(s):  
Paulo Afonso ◽  
Alex Santana
Keyword(s):  
Cost Model ◽  
Deep Understanding ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Study Results ◽  
Unused Capacity ◽  
Logistics Process ◽  
The Cost ◽  
Capacity Cost

Purpose: The understanding of logistics process in terms of costs and profitability is a complex task and there is a need of more research and applied work on these issues. In this research project, the concepts underlying Time-Driven Activity Based Costing (TDABC) have been used in the context of logistics costs.Design/methodology/approach: A Distribution Centre of wood and carpentry related materials has been studied. A multidisciplinary team has been composed to support the project including the researchers and three employees of the company responsible for accounting, logistics and warehousing. The design and implementation of the costing model asked for a deep understanding of the different tasks and processes that should be considered. Accordingly, a TDABC model for the logistics function was developed.Findings: The cost model presented here is supported on a series of time equations designed for the logistics function which allow the analysis and discussion of costs and profitability of different cost objects namely, products, clients, distribution channels, processes and activities. The cost of unused capacity and the effectiveness of logistics processes are also highlighted in this model.Research limitations/implications: In a case study, results and implications cannot be directly or immediately generalized. Nevertheless, the proposed time equations and cost model can be easily adapted to explain other types of logistics functions and it gives the foundations or other TDABC models with more than one capacity cost rate.Practical implications: The TDABC model developed in this case study can be used in similar cases and as a basis for the analysis of logistics costs in other logistics processes. Furthermore, managers can rely on the proposed approach to analyze products’ profitability and logistics cost structure. Originality/value: In this case, different capacity cost rates were computed in order to reflect appropriately the logistics function which was presented in two different processes: internal logistics and distribution. These processes have specific resources allocated and should be measured differently. This is in line with Kaplan and Anderson (2004, 2007) who have suggested a more complex TDABC model with more than one capacity cost rate for these situations.

scholarly journals Environmental cost analysis and reporting to measure environmental performance in realizing eco-efficiency at PT Industri Kereta Api (Persero)

2018 ◽  
Vol 3 (2) ◽  
pp. 169-180
Author(s):  
Basuki Basuki ◽  
Riasty Dewi Irwanda
Keyword(s):  
Environmental Performance ◽  
Design Methodology ◽  
Environmental Cost ◽  
Operating Costs ◽  
Operational Cost ◽  
Content Type ◽  
Descriptive Case Study ◽  
The Cost ◽  
Cost Report

Purpose The purpose of this paper is to simulate the environmental cost reports preparation used to measure environmental performance in realizing eco-efficiency. Design/methodology/approach This research uses a descriptive case study by using environmental cost detail data from 2011, 2012, 2013 and 2014. The research object is PT Industri Kereta Api (Persero) located in Madiun, East Java. Findings The result of the research shows that PT INKA (Persero) has not specifically made environmental cost report. It is found that the percentage of total environmental cost to operational cost tends to increase; the cost which gives the biggest distribution of total environmental cost is the prevention cost. By 2014, the effect of environmental costs on operating costs tended to decrease and during 2012–2014 PT INKA successfully maintained the blue star PROPER and the absence of environmental pollution reports. Originality/value PT INKA’s environmental performance is still well controlled and since its inception in 2014 PT INKA has succeeded in realizing the concept of eco-efficiency.

scholarly journals Enabling Cost-Based Support Structure Optimization in Laser Powder Bed Fusion of Metals

JOM ◽  
2021 ◽  
Author(s):  
K. Bartsch ◽  
C. Emmelmann
Keyword(s):  
Cost Model ◽  
Structure Optimization ◽  
Powder Bed Fusion ◽  
Support Structures ◽  
Laser Powder Bed Fusion ◽  
Powder Bed ◽  
The Individual ◽  
The Cost ◽  
Support Layout

AbstractSupport structures are essential to laser powder bed fusion (PBF-LB/M). They sustain overhangs, prevent distortion, and dissipate process-induced heat. Their removal after manufacturing is required, though, increasing the overall costs. Therefore, optimization is important to increase the economic efficiency of PBF-LB/M. To enable optimization focused on the support structures’ costs, a cost model is developed. The whole production process, including the design, manufacturing, and post-processing of a part, is considered by deriving formulas for the individual costs. The cost model is applied to a previously developed benchmark procedure. Additionally, a case study investigating different support layout strategies is conducted.

scholarly journals Aspects of determining consumer basket concerning nonfoods and services for regions of Russian Federation (case study of Astrakhan region).

2020 ◽  
Vol 2020 (3) ◽  
pp. 59-70
Author(s):  
Svetlana Yurievna Abdulova
Keyword(s):  
Human Development ◽  
Russian Federation ◽  
Consumer Goods ◽  
Life Support ◽  
Transport Services ◽  
Sporting Goods ◽  
The Cost ◽  
Development Analysis

The article highlights the pressing issue of qualitative transformation of the consumer basket, the composition of which has not been revised in the Russian Federation for 7 years. It has been stated that during this period there took place changes in the socio-economic development of the regions, including the demands of the population for a minimum set of nonfoods and services necessary for life and human development. Analysis of the active methods of calculating the consumer basket on the example of the Astrakhan region showed that food products make about 50%, the remaining 50% equally accounted for nonfoods and services. Calculating expenses for nonfoods and services is based on the established percentage ratio with the cost of food. This method does not allow to take into account all the minimum needs of various groups of the population for nonfoods and services for life support and human development. In recent years there have been the significant changes in the needs of the population, which are neglected by the method. An example is the need to purchase a mobile phone, computer, medical products and medicines, sporting goods, as well as the need for communication, educational, cultural, social and transport services. There has been proposed a normative method of calculating the cost of nonfoods and services in the consumer goods basket. The new method provides establishing a specific inventory and quantity of nonfoods with useful life, as well as determining a specific inventory and periodicity of the needed services, which will make the calculation of the consumer goods basket more credible. It has been proposed to provide savings for improving housing conditions and creating a financial reserve when forming a consumer basket. The preliminary calculations showed an increase in the project cost of the consumer basket by more than 2 times, which can lead to an increase in budget expenditures for social purposes, but at the same time it will also contribute to the development of economy and improve the quality of life of the citizens. Conclusions are made that there is a need to review the consumer basket. There has been recommended a comprehensive approach to the problem: to consider the needs of citizens and the budget possibilities.

scholarly journals Analysis of the Cost of Emergency Managers’ Meeting Load: A Hampton Road Case-study

2015 ◽  
Vol 12 (1) ◽  
Author(s):  
Andrew J. Collins ◽  
David W. Flanagan ◽  
Barry Ezell
Keyword(s):  
Cost Model ◽  
Senior Leadership ◽  
Hampton Road ◽  
Hampton Roads ◽  
Travel Costs ◽  
Emergency Managers ◽  
State Capital ◽  
High Level ◽  
The Cost

AbstractPreparation for a disaster is not something that can be done by a single organization thus there is a need for coordination between them. Meetings and joint exercises are one means of coordination used by the emergency management community. Meetings and exercises take time, including transportation of personnel and arrangements, and time is money. With limited budgets, emergency managers need to make hard decisions about how their time is allocated. This paper describes a cost model for meeting analysis and discusses a case study that looks at the holistic time spent on meetings and exercises, by personnel, for the Hampton Roads Region of Virginia. A novel way is used to display this expenditure, e.g., it is shown in terms of monetary cost instead of temporal cost. This analysis highlighted some unexpected results, i.e., the small number of personnel involved in multiple working group meetings and high level of travel costs between the HR and the state capital, Richmond. This cost model approach may provide emergency managers with better mechanisms to show their meetings costs to senior leadership.

CASE STUDY OF A QUALITY COST MODEL IN A SMALL BUSINESS

2016 ◽  
Vol 7 (2) ◽  
pp. 1-24
Author(s):  
Neto Jose Alves da Silva ◽  
◽  
Giacaglia Giorgio Eugenio Oscare ◽  
Keyword(s):  
Small Business ◽  
Cost Model ◽  
Quality Cost
Sign in / Sign up

Export Citation Format

Share Document