The Role of Supply Chain Management and Standard Costing Techniques in Performance Evaluations of Hotel Businesses

  • Vedat Ekergil
  • Merve Özgür Göde
Conference paper


Accommodation establishments represent a complex sector with many elements, including demand uncertainty, customer-oriented management, complex production constraints, unified long raw material procurement processes, and adaptation to changing economic conditions. In such a sector, it is not possible to minimize the costs of the business and to maximize the efficiency of the service by controlling only one of the largest cost items. To create a competitive advantage in a customer-oriented market, many elements, such as manpower, energy, water, maintenance, and stocks, need to be properly managed. Planning for as much communication as possible in supply chain management is also an important factor. Planning is the creation of a common consensus regarding the future objectives of business management. There are two basic elements to making the plans concrete. The first element is the estimates that embody the vision of the management of the business. Estimates may vary depending on the size of the vision. Some businesses connect their vision to standards, while some businesses base their vision on more than one estimate. The second element is the operating budget. Operating budgets are an important guide for determining the extent to which business management visions are realized. This guide allows for the evaluation of the success of the entire business, as well as the success of each department and the managers. The main aim of the study is to measure the success of the hotel business. Supply chain management and standard costing techniques are used to measure this success. To achieve this goal, a five-star hotel has four years of data. In the study, electricity consumption, the total cost of electricity, and the fixed and variable costs are first estimated and actualized for the four-year data of the hotel, which represents the activity period of the hotel. Using this data set, the performance is assessed using data about the rooms and customers per night. In the second part of the study, electricity consumption, total cost of electricity, and fixed and variable costs are determined. Performance evaluation can be conducted at the level of rooms and customers per night. The degree to which the performance evaluation of each part of the hotel affects the overall performance of the hotel can therefore be analyzed.


Supply chain management Standard costing Performance Deviation analysis Hotel business 



This study was supported by Anadolu University Scientific Research Projects Commission under the grant no.: 1808E284.


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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Vedat Ekergil
    • 1
  • Merve Özgür Göde
    • 2
  1. 1.Open Education FacultyAnadolu UniversityEskisehirTurkey
  2. 2.Department of Gastronomy and Culinary Arts, Faculty of TourismAnadolu UniversityEskisehirTurkey

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