He investigated that the amount of returns is highly uncertain and this uncertainty greatly affect the collection and inventory decisions. Savaskan et al.  developed a reverse logistic inventory model considering the return rate is affected by the collection investment. They analyzed a decentralized supply chain, in which all participants pursue their own profit. The collection investment represents the economic amount of effort (e.g.,
Activity Based Costing is defined by CIMA, “As an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on consumption estimates. The latter utilize cost drivers to attach activity costs to outputs.” The best way to understand this is perhaps by going through the various steps of ABC first which are as follows: 1. Identifying costs – The first and the most important step, it involves identifying the activity for which the costs are meant to allocated or found. It helps in realizing the necessary elements for the process and the cost associated with it.
The chief mission of neoclassical economics is to understand how the price system coordinates the use of resources, not the inner workings of real firms.” Similar to Coasian economics, procurement can be arranged through the market and regulated by the price mechanism with all of its attendant hidden costs to the procurement official, or the exchange transactions of procurement can be vertically integrated and ordered through the firm in a hierarchy where purchasing is integrated with the needs for the same products by other principals (and as we shall see, their agents). This theory is relevant in decision making process among the FOs which eventually affect the effectiveness of the IPP of the
2.4.1. The Transaction Cost Approach TCT emerged as part of the New Institutional Economics. Its basic premise is the consideration of the firm as a governance structure. TCT was initially approached by Coase (1937) and further developed by Williamson (1975b). Coase (1937) argued that firms and markets have different transaction costs and that they are alternative
creation of goods or service) The conventional conceptualization of production in construction is that production is viewed as a transformation of inputs to outputs (Bertelsen & Koskela 2002). Furthermore, Ballard et al. (2002) defines that the traditional view of production as a flow of material from raw material to the end product. Likewise in economics, the term production is a process which transform inputs into an output.
It encompasses systematic analysis and financial forecasts. The forecasts and analysis are based on the application of resources, products and markets. A budget requires the managers to make and it can later be used as a tool for measuring the performance of the operations and the effectiveness of various departments in a firm. There are various approaches applied in budgeting. One of the approaches is the traditional incremental budget and the other one is the zero based budgeting.
Cost on the hand includes all expenditures incurred in the course of running the business. These cost could be direct or indirect in nature depending on their traceability to a cost or cost unit (direct cost, indirect cost, cost center and cost unit are defined later). In traditional cost accounting, direct costs are allocated to cost centers or cost the cost units where they can be
Value Chain Analysis is a set of activities that based on the process view of company in specified industry in order to deliver a valuable service or product to the market (Porter, 1985). The Value Chain is conducted by begin with activity of purchasing raw material with suppliers and ending with delivering product to customers via a series of value-added activities, which in order to determine the costs and affects profits. These activities are categorised into 2 parts, Primary and Support activities. The primary activities are Inbound, Operations, Outbound, Marketing & Sales and Service. On the other hands, Support activities are Procurement, Human Resource Management, Technological Development and Infrastructure.
Earned Value Management (EVM) This is depicted by the Pmbok® as a key procedure used to focus the current status of a task regarding time and cash. It is characterized as takes after: 'Earned Value Management (EVM) is a philosophy that joins scope, schedule, and resource estimations to evaluate project execution and advancement. It is an ordinarily utilized system for execution estimation for projects. It coordinates the extension pattern with the expense benchmark, alongside the schedule gauge, to structure the execution standard, which helps the undertaking administration group evaluate and measure project execution and advancement. It is a project administration system that requires the arrangement of a coordinated standard against which execution can be measured for the term of the undertaking.'
Pricing Strategies What are the various pricing strategies at the disposal of an organization? Pricing is defined as the process of what a company will receive in exchange of its services or products. It can also be defined as the method adopted by a firm to set its selling price. Factors that influencing pricing include manufacturing cost, competition, quality of product, brand, market place and market condition. Pricing strategy: It’s the pursuit of identifying the optimal price of a product.