Resource Consumption Models: Difference between revisions
From MediaWiki
Jump to navigationJump to search
No edit summary |
No edit summary |
||
| Line 1: | Line 1: | ||
Kaplan says they are Resource Consumption models | [[author::Kaplan]] says they are Resource Consumption models | ||
| Line 10: | Line 10: | ||
See also [[ABC]] | See also [[ABC]] | ||
[[category:Pages Needing Improvement]] | |||
[[Category:Strategy]] | [[Category:Strategy]] | ||
Latest revision as of 08:03, 13 October 2012
Kaplan says they are Resource Consumption models
Cost of resources supplied = cost of resources used + unused capacity E.g. capacity to process 15,000 at a cost of $300,000 or $20/PO. If 13,000 orders are processed $40,000 of unused capacity. If this cost is fixed then it’s a committed resource. If it can be continually adjusted like casual labor then it’s a Flexible resource (V.C)
So if managers decide to reduce a product line that will automatically increase the unused capacity. Mgrs should try and reduce this cost. If more PO’s are processed (people working harder and longer) eventually more spending will be required to get back to equilibrium
See also ABC
