Logistics Cost   in Wooden Furniture Industry

Saranyu  Wasuwat; Nivit   Charoenchai

Proceedings of ICLT 2014

Logistics Cost in Wooden Furniture Industry

Saranyu Wasuwat; Nivit Charoenchai

Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand; Department of Industrial Engineering, Faculty of Engineering, Chiang Mai University, Thailand

International Conference on Logistics & Transport 2014, Kuala Lumpur, Malaysia, pp. 257-264

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Abstract

This analysis of logistics cost in Wooden Furniture Industry started from gathering all the cost information in the factory. Then, the Activity-Based Costing (ABC) was applied and used for the cost analysis. Four types of costs were examined: labor cost, land cost, machinery cost, and material cost. After that, cost calculation was distributed to all resources and to evaluate the total cost. Then, the total cost was divided based on 13 logistics activities to identify the logistics cost. This cost analytic method can propose a practical way to improve logistics cost of the industry for more efficient and effective management.

Keywords

Logistics Cost; Furniture; Activity-Based Costing

Citation

Saranyu Wasuwat; Nivit Charoenchai (2014). Logistics Cost in Wooden Furniture Industry. Proceedings of the International Conference on Logistics & Transport (ICLT 2014), Kuala Lumpur, Malaysia, pp. 257-264.