Hybrid Product Cost Calculation Model as a Decision Support Tool

Abstract

Cost calculation is of huge importance both for determining a rational and competitive price of the product and preparation of offers according to customer's demand, where deadlines for sending offers are limited. In individual and small batch production, which is characterised by a wide product range, reduced quantities, and short delivery times, cost calculation in forming the price of the product according to customer requirements is of essential importance. Traditional methods of calculating the cost of products in these cases are inefficient, considering the number of offers that need to be made, timing, as well as their competitiveness in the market. For product cost calculation in individual and small batch production, it is necessary to apply modern, efficient methods and models based on the application of artificial intelligence. A wide range of products, which is characteristic of individual and small batch production in some companies, enables the development of modern costing models with the use of basic principles of group technology. The constructional and technological similarity of products enables the formation of groups of similar parts and appropriate group technological processes. Combining that with artificial intelligence, it is possible to develop appropriate cost calculation models. This paper presents a developed model for production cost calculation, based on the principles of group technology and adaptive neuralfuzzy networks (ANFIS).

Keywords

• ANFIS
• calculation
• costs
• group technology
• product