Research On Logistics Cost Management Based On Mode Of BSC And ABC

It is well known that modern logistics management is irreplaceable for reducing costs, increasing profits and enhancing the core competitiveness in enterprises. Logistics cost management is an part of modern logistics management in order to realizing the economic benefits of logistics management.The development and application of new management tools such as ABC(activity based costing)and BSC(balanced scorecard)provided new management concepts and methods to improve logistics cost management. The thesis has a new idea of logistics cost management which are oriented by logistics strategy, based on accurate logistics cost and management from top to down. Then, this thesis studied relations between ABC,BSC and logistics cost management, analyzed both advantage and disadvantage, emphasized the effect of complementarity and integration of the three tools, proposed mode of logistics cost management based on the method of BSC-ABC.Started with the formation mechanism of logistics cost, the thesis summarized logistics cost, analyzed the horizontal and vertical formation mechanism of logistics cost, generalized system of logistics cost based on system. Secondly, on the basis of feasibility of logistics cost management based on method of both activities based costing and balanced scorecard, this thesis proposed the mode of logistics cost management based on the method of BSC-ABC and established the enterprise operation model of logistics cost management. Thirdly, after considering the characteristics of logistics cost system based on complexity and dynamic and analyzing four subsystems including logistics cost, logistics cost factors, strategy of logistics cost and performance of logistics management, the thesis built the model of using the method of system dynamic. Through the simulation of above model by using Vensim software, this thesis demonstrated the operability of the mode of logistics cost management based on the method of BSC-ABC. Finally referencing the model of EOQ, this thesis proposed the inventory model under the mode of BSC-ABC and demonstrated the operability of the inventory model by using the example.