Supply Chain Costs Analysis Using Activity-Based Costing: Case Study in Rebar Supply

The activity-based costing method was used to compute rebar supply chain costs. This paper describes the model developed, the calculated costs, and sensitivity analysis results, followed by the relatedness to lean principles. Many literatures and consulting companies discuss how to reduce total costs in supply chain. But the first question to improve supply chain profitability should be to understand where the costs are spent in your supply chain and where the opportunity for improving your profits exists.