Applications of O.R. techniques in cost allocation of major operational materials in an alloy and special steel manufacturing unit

Abstract In this paper the problem of allocating the major components of process costs to various qualities of products produced in a melting shop of an alloy and special steel manufacturing unit have been considered. Use of Quadratic Programming technique is envisaged to estimate the consumption pattern of important operational materials, which can not be directly allocated against each quality, so as to arrive at more realistic and accurate routewise and qualitywise cost at the melting shop.