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A RESOURCE TRACKING METHOD FOR the FOOD INDUSTRY
Author(s) -
BARCENAS CANDELARIA,
NORBACK JOHN P.
Publication year - 1994
Publication title -
journal of food process engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.507
H-Index - 45
eISSN - 1745-4530
pISSN - 0145-8876
DOI - 10.1111/j.1745-4530.1994.tb00348.x
Subject(s) - activity based costing , purchasing , resource (disambiguation) , product (mathematics) , computer science , process (computing) , unit (ring theory) , manufacturing engineering , operations research , operations management , industrial engineering , business , engineering , marketing , mathematics , computer network , geometry , mathematics education , operating system
Matrix Data Structure (MDS) and the Gozinto Procedure (GP) can be the basis for resource tracking and for costing systems used in the food industry. These methods have enjoyed great success and broad application among fabricators, but they have not been used much in process industries, including the food industry. While the main data entry requirement for such a system is to build accurate bills of material (BOM) for the intermediate and finished products, this is not sufficient to make a useful application in the food industry. Food and other process industries need such a system to convert between purchase units, batch units and sales units. This conversion problem and the existence of unit operations that are separation processes have prevented the application of these methods in the industry. These two problems have led to many ad hoc methods for calculating costs and tracking resource use. the unit conversion problem (purchasing in pounds, kilograms or gallons of input materials, processing batches of intermediate products, and selling containers or cases of finished product) is solved by introducing a unit conversion matrix to the system. the problem of multiple counting the input material going into a separation process is solved by using dummy input material names for the BOM of the products coming out of the separation process. the solution to these problems have provided access to the structural power of MDS as an organizational tool and the application of GP to the matrix structure to obtain integrated, consistently computed information to support managers in the production planning and control activities.