Article ID: | iaor1990102 |
Country: | United Kingdom |
Volume: | 40 |
Issue: | 12 |
Start Page Number: | 1109 |
End Page Number: | 1119 |
Publication Date: | Dec 1989 |
Journal: | Journal of the Operational Research Society |
Authors: | Aucamp Donald C. |
Keywords: | programming: linear |
A multiperiod linear programming model of the production planning problem is used to argue for a different costing, profit and resource-evaluation procedure in manufacturing. This procedure is based on the concept of ‘pseudo shadow prices’, and it avoids many of the pitfalls associated with the more traditional accounting methodologies. Conclusions are drawn which question the profit objectives used by many firms, as well as by those in academia.