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Cost modelling as decision support when locating manufacturing facilities

Windmark, Christina LU and Andersson, Carin LU (2016) In International Journal of Production Management and Engineering 4(1). p.15-27
Abstract
This paper presents a methodology for cost estimation in developing decision support for production location issues.
The purpose is to provide a structured work procedure to be used by practitioners to derive the knowledge needed to make
informed decisions on where to locate production. This paper present a special focus on how to integrate cost effects during
the decision process. The result is a structure of cost estimation tools aligned to different steps in the work procedure. The
cost models can facilitate both cost estimation for new production configurations and cost simulations to analyse the risks of
wrong estimations and uncertainties in the input parameters. Future research aims to test the methodology in... (More)
This paper presents a methodology for cost estimation in developing decision support for production location issues.
The purpose is to provide a structured work procedure to be used by practitioners to derive the knowledge needed to make
informed decisions on where to locate production. This paper present a special focus on how to integrate cost effects during
the decision process. The result is a structure of cost estimation tools aligned to different steps in the work procedure. The
cost models can facilitate both cost estimation for new production configurations and cost simulations to analyse the risks of
wrong estimations and uncertainties in the input parameters. Future research aims to test the methodology in ongoing transfer
projects to further understand difficulties in managing global production systems. Cost is usually estimated, in existing models
and methods presented in the literature, on a too aggregated level to be suitable for decision support regarding production
system design. The cost estimation methodology presented here provides new insights on cost driving factors related to the
production system. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Cost analysis, Location decision, Production cost
in
International Journal of Production Management and Engineering
volume
4
issue
1
pages
13 pages
ISSN
2340-5317
language
English
LU publication?
yes
id
17573737-ff30-438b-9216-de1026790d38
alternative location
http://dx.doi.org/10.4995/ijpme.2016.4177
date added to LUP
2016-10-04 11:44:47
date last changed
2016-10-12 16:46:20
@misc{17573737-ff30-438b-9216-de1026790d38,
  abstract     = {This paper presents a methodology for cost estimation in developing decision support for production location issues.<br/>The purpose is to provide a structured work procedure to be used by practitioners to derive the knowledge needed to make<br/>informed decisions on where to locate production. This paper present a special focus on how to integrate cost effects during<br/>the decision process. The result is a structure of cost estimation tools aligned to different steps in the work procedure. The<br/>cost models can facilitate both cost estimation for new production configurations and cost simulations to analyse the risks of<br/>wrong estimations and uncertainties in the input parameters. Future research aims to test the methodology in ongoing transfer<br/>projects to further understand difficulties in managing global production systems. Cost is usually estimated, in existing models<br/>and methods presented in the literature, on a too aggregated level to be suitable for decision support regarding production<br/>system design. The cost estimation methodology presented here provides new insights on cost driving factors related to the<br/>production system.},
  author       = {Windmark, Christina and Andersson, Carin},
  issn         = {2340-5317},
  keyword      = {Cost analysis,Location decision,Production cost},
  language     = {eng},
  number       = {1},
  pages        = {15--27},
  series       = {International Journal of Production Management and Engineering},
  title        = {Cost modelling as decision support when locating manufacturing facilities},
  volume       = {4},
  year         = {2016},
}