Cost Allocation with Limited Information
AbstractThis article investigates progressive development of Aumann-Shapley cost allocation in a multilevel organizational or production structure. In particular, we study a linear parametric programming setup utilizing the Dantzig-Wolfe decomposition procedure. Typically cost allocation takes place after all activities have been performed, for example by finishing all outputs. Here the allocation is made progressively with suggestions for activities. I other words cost allocation is performed in parallel for example with a production planning process. This development does not require detailed information about some technical constraints in order to make the cost allocation.
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Bibliographic InfoPaper provided by University of Copenhagen, Department of Food and Resource Economics in its series MSAP Working Paper Series with number 01_2013.
Length: 13 pages
Date of creation: Mar 2013
Date of revision:
cost allocation; Aumann-Shapley prices; decomposition; parametric programming;
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