Fixed cost oriented bottleneck analysis with linear programming

Despite the increasing ratio of fixed cost in the operating cost of production systems, variable cost oriented decision support methods prevail. These methods, however, have several unexploited capabilities to consider period costs as well. This paper shows how sensitivity analysis of the optimum solution of a linear programming model can provide overhead oriented information as well. The analysis is illustrated with a simple example.

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Year of publication:	1995
Authors:	Koltai, T.
Published in:	Omega. - Elsevier, ISSN 0305-0483. - Vol. 23.1995, 1, p. 89-95
Publisher:	Elsevier
Keywords:	production resource management LP sensitivity analysis accounting

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005445474