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South African Journal of Industrial Engineering

On-line 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 1012-277X.

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.

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