ABC application in order appraisal and order selection for plastic mold company
Date Issued
2007
Date
2007
Author(s)
Wu, Guan-De
DOI
zh-TW
Abstract
To fully utilize its available capacity and maximize its business volume, a mold manufacturing company is suggested to establish a method to estimate a mold production cost, and appraise each order and then select the suitable ones. Hence, to establish an accurate costing model, order appraisal system, and optimal order selection method are worth studied.
This study intends to do so：(1) To improve the cost distortion by traditional costing, an activity-based costing (ABC) model for a mold company is established firstly. (2)Based the established ABC model, an order appraisal system is then built. This appraisal system can provide a direct and quick way to offer a detailed quotation for each order. And this system can also help in negotiating with buyers effectively. (3) Combining the proposed appraisal system with plant production capacity, an order selection optimization is established. With the order selection method, the company can fully utilize its available capacity and maximize its business volume.
This study finds the detailed cost distribution of a mold company, and reveals the largest proportion of the fixed cost is the facility-related cost. Thus, a mold cost consists of three parts: the facility-related costs, direct costs and service charge. The ABC model provides detailed information about the three-part costs. Therefore, the appraisal system and order-selection method can then be established in this study. With the built three methods, the mold company can determine the order mix easily and maximize their manufacturing values.
Subjects
作業基礎成本制度
訂單估價
產能規劃
最佳化方法
接單組合
ABC
order appraisal
capacity planning
optimal order selection method
order mix
Type
thesis