Communications - Scientific Letters of the University of Zilina 2006, 8(3):12-16 | DOI: 10.26552/com.C.2006.3.12-16
Cost Reduction by Means of Alternative Solutions
- 1 Department of Management, University of Veszprem, Hungary
In some projects the offered remuneration is lower than the estimated total costs. There are three possibilities to handle this problem. The first two is either to resign from the implementation, or to accept it knowing that we will loose money, but can regain it later in another project. In this latter case we have to determine the optimal resource allocation with minimal total cost. In the scheduling phase we can use some cost minimizing method. After that we can determine the lower and the upper bound of the start time of the activities. The next step is to determine a feasible solution and then the optimal resource allocation. The third possibility is to accomplish the project and find alternative implementation of activities that requires lower variable costs. During the search for alternative implementation of activities the most important aspect should be the quality, the decrease of costs is only the second one. If the total cost is lower than the offered remuneration we have to find the optimal resource allocation for the problem. Sometimes we cannot find alternative implementations, e.g. when a minimal quality level is given. In this case we can decide to either refuse or accept the implementation based on the extent of possible loss of money.
Keywords: no keywords
Published: September 30, 2006 Show citation
References
- ANDRÁSFAI, B.: Graph theory, Polygon, Szeged, 1997, pp.1-131
- KAUFMANN, A.: Methods and Models of the Operational Research, Technical Publishing House, Budapest, 1968, pp.11-123
- BENCSIK, A.: Methodology of Organizational Techniques, University Press, Veszprém, 1998
- CHRISTOPHIDES, N.: Graph theory, An Algorithmic Approach, Academic Press, New York, 1975
- DERIGS, U.: Programming in Network and Graphs. Lecture Notes in economics and Mathematical Systems. Vol. 300. Springer - Verlag, New York, 1988
Go to original source... - KOSZTYÁN, Z., BENCSIK, A., HOGYOR, A.: Optimal Resource Allocation of Active Projects, Verlag Dashöfer, 2002
- KOSZTYÁN, ZS., BENCSIK, A.: Optimal Resource Allocation of the Projects with Uncertain Lead Time, Verlag Dashöfer, 2003
- KOSZTYÁN, ZS., BENCSIK, A.: Handling of Uncertainty in case of Different Logistical Tasks, Verlag Dashöfer, 2002
- PAPP, O.: Employment of Network Programming Methods in Practice, Economic and Legal Press, 1969
- AHUJA, R. K., MAGNATI, TH. L., ORLIN, J. B.: Network Flows, PRENTICE HALL, Upper Saddle River, New Jersey 07458 1998, pp.24-46, 108-116, 135-154, 177-196, 469-173, 520-528
- RÓNYAI, L., IVANYOS, G., SZABÓ, R.: Algorithms, Typotex, Budapest, 1998, pp.110-183
- SZENDREI, Á.: Discrete Mathematics, Polygon, Szeged, 1996, pp.63-68, 295-324
- COHEN, TH. H., LEISERSON, CH. E., RIVEST, R. L.: Algorithms, (Technical Publishing House), Budapest, 1997, pp.392-543
- TÓTH, I.: Mathematics for Business Administrators - Operational Research I, Textbook Press, Budapest, 1987, pp.167-189.
This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.