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South African Journal of Industrial Engineering
On-line version ISSN 2224-7890
Print version ISSN 1012-277X
Abstract
MOOLMAN, A.J.; KOEN, K and VAN DER WESTHUIZEN, J.. Activity-based costing for vehicle routing problems. S. Afr. J. Ind. Eng. [online]. 2010, vol.21, n.2, pp.161-172. ISSN 2224-7890.
Activity-based costing (ABC) is a costing model that identifies activity costs in an organisation. It assigns the cost of activity resources to generate the actual cost of products in order to eliminateunprofitable products and to lowerthe prices of overpriced ones. The vehicle routing problem (VRP) is a combinatorial optimisation and nonlinear programming problem that seeks to service a number of customers with a fleet of vehicles in a cost-effective manner. In this article we propose a new approach to determine costing for vehicle routing type problems. The methodology incorporates the predictive sharing of a resource by clustering producers.