Decision Models for Green Manufacturing system investment and Product-Mix under Activity-Based Costing

• Main Authors: Hui-chiao Chen, 陳慧巧
• Other Authors: Wen-hsien Tsai
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/60005221504554426926

博士 === 國立中央大學 === 企業管理研究所 === 100 === The purpose of this study is to assess how activity-based costing (ABC) system can assist the justification of capital investments for the green manufacturing systems (GMS). We provide an investment decision model and a numerical example for the justification of GMS based the ABC system to include not only the direct performances but also the intangible benefits that are generated by the adoption of GMS. This research paper also proposes a mathematical programming model to analyze the profitability of product-mix decision based on the ABC and theory of constraints (TOC) to include tangible and intangible benefits that are generated by the adoption of new GMSs and incorporate the capacity expansion features that are the results of successive improvements in the firm’s operations and performance. Our findings provide insight into the value of mathematical programming approaches for GMS investment and product-mix decision making based ABC system and demonstrate the opportunity to reduce pollution while simultaneously improving the value of green manufacturing investment.