Applying decision-oriented accounting principles for the simulation-based design of logistics systems in production

TL;DR: A novel approach is proposed to incorporate technical consumption or engineering production functions into Riebel's Generic Direct Cost Accounting and to add both methods to a standard DES modeling, so that the informational value of DES is significantly improved.

Abstract: In this contribution, we focus on the configuration of logistics systems embedded into production processes. To evaluate the dynamic behavior of alternative configurations, Discrete-Event Simulation (DES) proofs helpful. Emphasis is typically put on physical performance measures. However, as configuration decisions have significant financial impact to the firm, an additional monetary impact assessment is usually performed. This requires cost accounting techniques that appropriately incorporate system complexity into the financial model. To this end, we propose a novel approach to extend the applicability of DES for configuration problems. The basic idea is to incorporate technical consumption or engineering production functions into Riebel's Generic Direct Cost Accounting and to add both methods to a standard DES modeling. Consequently, the informational value of DES is significantly improved. Misleading decision support can be avoided and insights into the relationship between processes and the value structure are achieved. Both of which contribute towards improved configuration decisions.