Abstract
This chapter presents a method for developing an Activity-based Cost (ABC) model for use in life-cycle design under the presence of uncertainty. The crux in developing an ABC model is to identify the activities that will be present in the life-cycle of a product, and afterwards assign reliable cost drivers and associated consumption intensities to the activities. Uncertainty distributions are assigned to the numbers used in the calculations, representing the inherent uncertainty in the model. The effect of the uncertainty on the cost and model behavior are found by employing a numerical simulation technique — the Monte Carlo simulation technique. The additional use of detailed process action charts and sensitivity charts allows the influence of the uncertainty to be traced through the cost model to specific product and process parameters. The method is illustrated using a detailed product demanufacturing cost model.
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Bras, B., Emblemsvåg, J. (1996). Designing for the Life-Cycle: Activity-Based Costing and Uncertainty. In: Huang, G.Q. (eds) Design for X. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3985-4_20
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DOI: https://doi.org/10.1007/978-94-011-3985-4_20
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-5762-2
Online ISBN: 978-94-011-3985-4
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