Template-Type: ReDIF-Paper 1.0
Author-Name:  Jens Leth Hougaard
Author-Name-First: Jens Leth
Author-Name-Last: Hougaard
Author-Email: jlh@ifro.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name:  Jørgen Tind
Author-Name-First: Jørgen
Author-Name-Last: Tind
Author-Workplace-Name: Department of Mathematical Sciences, University of Copenhagen
Title:  Cost Allocation with Limited Information
Abstract: 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.
Length: 13 pages
Creation-Date:  2013-03
File-URL: http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2013/MSAP_WP01_2013.pdf
File-Format: Application/pdf
Number: 01_2013
Keywords: cost allocation, Aumann-Shapley prices, decomposition, parametric programming
Handle: RePEc:foi:msapwp:01_2013