Cost allocation with limited information

Research output: Working paperResearch

This article investigates progressive development of Aumann-Shapley cost allocation in a multilevel organizational or production structure. In particular, we study a linear parametric programming setup utilizing the Dantzig-Wolfe decomposition procedure. Typically cost allocation takes place after all activities have been performed, for example by finishing all outputs. Here the allocation is made progressively with suggestions for activities. I other words cost allocation is performed in parallel for example with a production planning process. This development does not require detailed information about some technical constraints in order to make the cost allocation.
Original languageEnglish
PublisherDepartment of Food and Resource Economics, University of Copenhagen
Number of pages13
Publication statusPublished - 2013
SeriesMSAP Working Paper Series
Number01/2013

ID: 105343690