Cost System Under Uncertainty: A Case Study in the Imaging Area of a Hospital

Carabalí, Víctor Javier Jiménez; Duarte, Carla; Afonso, Paulo

doi:10.1007/978-3-319-14078-0_37

Cited by 2 publications

(2 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Notably, the two prominent methods to address the challenge of uncertainty in mathematical models are the Monte Carlo simulation and fuzzy methods [42]. In the context of costing systems, several authors have explored the topic of uncertainty using either the Monte Carlo Simulation or fuzzy methods [28,[43][44][45][46][47].…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

et al. 2023

View full text Add to dashboard Cite

In capital-intensive organizations, decisions regarding capital costs play an important role due to the significant amount of investment required and the expected return on investment. Spare parts management is crucial to those ends, as spare parts management can constitute a significant portion of OPEX. Companies must implement a trade-off analysis between stock levels and assets’ availability. Decision-making supports mechanisms such as the Level of Repair Analysis (LORA), Integrated Logistics Systems (ILS), and life-cycle costing (LCC) models have been developed to aid in equipment selection, implementation, and decommissioning. Nowadays, these mechanisms appear to be integrated with risk-management models and standards. This paper proposes a long-term costing model that integrates a capacity analysis, reliability functions, and risk considerations for the cost management of logistics activities, particularly in MRO structures. The model is built upon Time-Driven Activity-Based Costing (TD-ABC) and incorporates the volume of activities generated by MRO needs. It also addresses uncertainty through the integration of a cost-at-risk model. By integrating spare parts, activity-based cost models, and risk measurement through Monte Carlo simulation, this study offers powerful insights into optimizing spare parts logistics activities. The proposed model is a novel approach to include the risk of cost in spare parts management, and its matrix-activity-based structure makes possible the development of sophisticated mathematical models for costing and optimization purposes in different domains.

show abstract

Section: Theoretical Backgroundmentioning

confidence: 99%

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

et al. 2023

View full text Add to dashboard Cite

show abstract

“…The Monte Carlo simulation and fuzzy methods can be highlighted among such methods (Díaz et al, 2022). Particularly, some authors have approached the subject of uncertainty in costing systems using either the Monte Carlo Simulation or Fuzzy methods (Durán & Afonso, 2021;Durán et al, 2019;Jiménez et al, 2015;Kropivšek et al, 2021;Ostadi et al, 2019;Rivero & Emblemsvåg, 2007).…”

Section: Introductionmentioning

confidence: 99%

Cost at Risk (CaR): a Methodology for Costing under Uncertainty

Jiménez Carabalí,

Afonso

2023

Prod.

View full text Add to dashboard Cite

Paper aims: This paper proposes Cost at Risk (CaR), a concept and a methodology that allows the computation of the risk of cost estimations within a costing system by means of the Monte Carlo Simulation, considering a predefined level of confidence and considering the worst expected result in terms of cost in a certain period.Originality: Traditionally, researchers and practitioners have been focused on deterministic costing models without recognizing and managing cost uncertainty. The proposed methodology is based on five steps that go from the determination of the parameters that generate uncertainty to the estimation of the risk.Research method: A Design Science Research (DSR) approach was followed based on mathematical modeling and computer simulation. Main findings:The model was applied to the imaging area of a hospital allowing to identify and quantify the risk of the most relevant costs and therefore, supporting the design and implementation of both operational and strategic decisions. Implications for theory and practice:The main contribution is the inclusion in costing systems of the uncertainty inherent in the estimation of costs, particularly in complex environments.

show abstract

Cost System Under Uncertainty: A Case Study in the Imaging Area of a Hospital

Cited by 2 publications

References 7 publications

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

Cost at Risk (CaR): a Methodology for Costing under Uncertainty

Contact Info

Product

Resources

About