Cost Allocation with Limited Information
Jens Hougaard () and
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Jørgen Tind: Department of Mathematical Sciences, University of Copenhagen
No 01_2013, MSAP Working Paper Series from University of Copenhagen, Department of Food and Resource Economics
This 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.
Keywords: cost allocation; Aumann-Shapley prices; decomposition; parametric programming (search for similar items in EconPapers)
Pages: 13 pages
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Persistent link: https://EconPapers.repec.org/RePEc:foi:msapwp:01_2013
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