On the Connections Between Activity Based Costing Models And Optimization Models

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On the Connections Between Activity Based Costing Models And Optimization Models
Jeremy F Shapiro
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99) The word "instantaneously" in this rule is too extreme. We would argue instead that plans need to be revised on a frequent, timely and competitive basis. Of course, models can and should play a central role in identifying effective revised plans. A key issue in determining organizational adaptation to repetitive use of 35 modeling systems is the cycle time for updating the data bases and exercising the systems to develop the revised plans.
10. Conclusions We have argued in this pap)er that
...the theory and practice of ABC and optimization modeling have considerable overlap. Moreover, the extension of ABC models to optimization models for decision support is an intuitive process that should appeal to many managers. The practical synthesis of the two modeling methodologies at the systems level is an area of current research.
ABC systems and Advanced DSS's based on optimization models have central roles to play in business re-engineering exercises that are changing organizational structures in thousands of companies.


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