Valuation of Variant Costs in Supply Networks

Transparency concerning direct and indirect costs that occur per product variant within the entire supply network is vital for the successful management of high product diversity. The introduction of variant classes and core processes is a promising approach to achieve transparency of costs for each company as well as for the supply network. By means of activity-based costing, the variant costs can be calculated and subsequently analyzed in order to realize an improved planning of product design, business processes and supply network.