A NEW METHODOLOGY BASED ON BSC/ABC AND GOAL PROGRAMMING TO MANAGING COST IN IRAN'S AUTO SUPPLY CHAIN

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1 A NEW METHODOLOGY BASED ON BSC/ABC AND GOAL PROGRAMMING TO MANAGING COST IN IRAN'S AUTO SUPPLY CHAIN * Kambiz Shahroui 1 an Seyeeh Afrooz Al Bahralolom 2 Department of Business Management, Rasht Branch, Islamic Aza University, Rasht, Guilan, Iran *Author for Corresponence ABSTRACT During the past few years, we have seen a significant shift in cost accounting an management. In the new business environment, cost management has become a critical skill, but it is not sufficient for simply reucing costs; instea, costs must be manage strategically. Application of a successful Strategic Cost Management (StraCM) system plays the significant role in success of organization performance. In this stuy, we want to illustrate how the goal programming moel in combination with tools of the StraCM can affect in improving organizations performance an Optimize cost management ecisions making. For this, we present a conceptual moel with an integrate approach of Balance Scorecar (BSC), Activity Base Costing (ABC) an Goal programming moel. Then for evaluating the propose moel, a numerical example with its solution proceure will be illustrate. Keywors: Strategic Cost Management (StraCM); Goal Programming; Balance Scorecar (BSC); Activity Base Costing (ABC) INTRODUCTION StraCM, much broaer than simple cost analysis, is the utilization of cost information to evelop superior Strategies en route to gain a competitive avantage,. Whereas the traitional cost analysis examines the financial impact of iniviual management ecisions, StraCM also eliberately uses cost information to support the business strategy. StraCM can improve the organization s cost structure an/or prouct an service performance by simultaneously analyzing its cost rivers, strategic position, an value chain to better assess key ecisions (Ellram an Stanley, 2008).One of problems face in StraCM, is that no tool exists to connect strategic costing principle with their implementation at the operational level (Venkatramanan, 2006). With regar to weaknesses that exist in tools an techniques of StraCM, there has to be a metho that can link costs to strategy of organization. In this stuy, we present a combine moel of ABC/BSC an in orer to optimize ecisions, this Moel is presente in a mathematical moel (Goal programming). So far the pioneer stuies that has been one in SCM s tools an technique inclue Cooper (Cooper, 1996), Kaplan an Anerson (Kaplan et al., 2004). The main parts of these stuies focus on ABC an target costing. There are limite stuies that link structure of cost management an Balance Scorecar. Kaplan an Norton (1996) were the first group to esign the BSC- ABC combine moel [5]. Venkatramanan (2006) applie this moel for the first time in a health care stuy. Shapiro (Shapiro, 1999) examine connections between cost-riven moels for analyzing a firm's strategic plans, which uses ABC mathematical moel an the resource-base view of the firm. However, no Stuy has been one to combine the BSC- ABC an Goal programming. Performance appraisal an implement of strategy are the key avantages of BSC framework, hence the structure of BSC integrate with organizational systems, such as the cost management system can have a synergistic effect on company performance an strategy implementation. Strategic Cost Management This section briefly reviews the unerlying concepts aopte by this research, such as the concepts of StraCM, their framework an tools. Definitions of Strategic Cost Management StraCM is extensively applie in the accounting literature. The theoretical unerpinning of StraCM lies in the economic moel transaction cost analysis (Ellram an Stanley, 2008). StraCM is unerstoo in Copyright 2014 Centre for Info Bio Technology (CIBTech) 5011

2 ifferent ways in literature. Shank an Govinarajan (1992) argue that StraCM coul be efine as using cost information to o the following: help formulates an communicates strategies, carry out tactics that implement those strategies, an then evelop an implement controls that monitor the success at achieving strategic objectives (Govinarajan an Shank, 1992). Cooper an Slagmuler argue that StraCM is the application of cost management techniques so that they simultaneously improve the strategic position of the firm an reuce costs. Furthermore, Cooper argue that StraCM nee to inclue all aspects of prouction an elivering the prouct. So, StraCM shoul be inherent to each stage of a prouct's life cycle (Cooper et al., 1997). Framework of Strategic Cost Management A framework that Recommene for StraCM encompassing: (1) Value chain analysis, (2) Strategic positioning analysis, (3) Cost river analysis. These three practices arguably provie a source of competitive avantage. None of these approaches itself represents StraCM rather the combination of these three items that constitute StraCM (Ellram an Stanley, 2008). Tools of Strategic Cost Management StraCM is a set of reliable techniques. These Techniques or tools may be use iniviually to support a specific goal or together to serve the overall nees of the organization (El Kelety, 2006). Some of the practices that have been relate as supportive of StraCM inclue: total cost of ownership analysis, target costing, an activity-base costing (Ellram an Stanley, 2008). A set of StraCM techniques that Are use together to support the organization's goals an activities are calle strategic cost management system (Hilton et al., 2003). When esigning a cost management system, it must be consiere many traeoffs such as costs an benefits of the cost management system (El Kelety, 2006). Balance Scorecar Kaplan an Norton (1992) originally introuce the Balance Scorecar. During next ecaes, it calle "Strategic management system". Not only this metho applie for performance evaluation, but also it uses as a framework for formulate of strategy, communication an control of strategy implementation (Kaplan an Norton, 2001). Evience suggests that managers ten to weight financial measures more heavily than non-financial measures for reasons such as outcome effects, outsie pressure, an familiarity (Carinaels an van Veen-Dirks, 2010). Whereas apply performance evaluation systems by non-financial measures are suggeste in orer to enhance strategy implementation. Performance measurement systems is strategy tool, because they contribute towars strategic objectives through three mechanisms: (i) a better unerstaning of the linkages between various strategic priorities; (ii) more effective communication of the association between objectives an actions; an (iii) more efficient allocation of resources an tasks (Dossi an Patelli, 2010). Kaplan an Norton (1996) stress the importance of ahering to three principles in eveloping BSC: Maintaining cause-an-effect relationships, comprising sufficient performance rivers an keeping a linkage to financial measures.they also emphasize that the BSC is only a template an must be customize for the specific elements of an organization or inustry. Depening on the sector in which a business operates an on the strategy chosen, the number of perspectives can be enlarge, or one perspective can be replace by the other (Martinsons et al., 1999). The Synergistic Effect of BSC an Strategic Cost Management In orer to emonstrate the synergistic effect of BSC an StraCM, we argue by two reasons. First, BSC is as linkage tool between cost management an strategy an another reason is the synergistic effect of BSC by value chain analysis Approach. One of the problems face in StraCM is that no tool exists to connect strategic costing principles with their implementation at the operational level (Venkatramanan, 2006). However StraCM tools can help in proviing important information for strategy formulation, evaluation of strategy implementation, an highlighting the practical limitations or problems with the aopte strategy (Shank an Govinarajan, 1993). Furthermore, as the complexity of operation increases, StraCM tools ten to become time-consuming an expensive to implement an maintain (Kaplan an Davi, 1992). A combine moel of BSC an StraCM tools can aapt the strategic BSC imensions, an use them as a means of collecting, organizing, an analyzing activity an cost information. This woul Copyright 2014 Centre for Info Bio Technology (CIBTech) 5012

3 overcome the above mentione limitation by organizing complex activity an cost ata, an by proviing a clear strategic link between imensions of activity, cost information, an strategic goals. BSC is a performance management tool that ientifies quantifiable performance measures an targets an links them to a unifie strategy (Kaplan an Norton, 1996). In orer to o this, the BSC efines performance imensions that are critical to strategy achievement. These imensions are terme perspectives (Kaplan an Davi, 1992). A StraCM tool coul create this link by taking avantage of the BSC principle that allows it to relate performance to achievement of strategic goals (Kaplan an Norton, 2001). By clearly efining the goals of an organization an then ientifying the ifferent imensions of activity an activity costs that are irecte towars that purpose, an explicit link can be create between activities, resource utilization, an objectives. This can provie a more strategic orientation to cost management at the operational level (Venkatramanan, 2006). Moreover, one of the most important concepts of StraCM is value chain analysis. The initial step in unertaking strategic cost analysis is to ientify the firm's value chain (El Kelety, 2006). A company cannot reuce costs an/or create value for customer by looking at its activities as a whole. Creating competitive avantage originates from many separate activities a company performs in esigning, prouction, marketing, elivering, an supporting its proucts (Porter, 1998). Each of these activities can contribute to improve a company's cost position an customer value (El Kelety, 2006). The BSC measures organizational performance from four perspectives, incluing financial, customer, internal business process, an learning an growth, in relation to the four functions of accounting an finance, marketing, value chain, an human resource (Wu et al., 2009). The BSC scheme integrates the interests of the key stakeholers, customers an employees on a scoreboar. The essence of BSC lies in seeking a balance between financial an non-financial measures (Wanga et al., 2010). These assets have to integrate in a set with other assets for value creation. BSC metho provies a framework for escription of strategy, by mean of connecting tangible an intangible assets in value activities (Kaplan an Norton, 2001). This selection process requires knowlege of the cost an value of each activity. With value chain analysis, the StraCM efforts are focuse on improving the strategic activities of the company, trace costs to value chain activities, an use the activity-cost information to manage the strategic value chain activities better than other companies. For example, in customer perspective of BSC framework, propose value to customer an how this value is resulte to growth an profitability for stockholers, is a substructure of strategy. Porter argue, ecentralization on special segment of customers an their esirable values, lea to organizations cannot achieve the competitive avantage or in internal business process perspective, organizations have to recognize the processes that can create value for customers an ultimately their stockholers. Organization s activities lie to internal business processes an constitute value chain of organization (Kaplan an Norton, 2001). Conceptual - mathematical Moel In this section, we presente a combine moel of BSC an ABC. Then for optimizing ecisions, we propose application of a mathematical moel (Goal programming moel). ABC technique is the most application systems in costing of prouct, but it can t fin answers for following questions: How to allocate resources to manufacturing activity in orer to minimizing a total cost? What is Optimum combination of corporation Prouctions? How prouction activities in orer to minimize the overall costs an access to the esire level of prouction shoul be use? How can assume ifferent objectives for a corporation? In aition, is it consiere in strategic planning? Furthermore, in many organizations, especially in the manufacturing sector, the resources which are use in the processes of the value chain can be categorize into manufacturing resources an nonmanufacturing resources. Manufacturing resources refer to the resources that immeiately enter manufacturing processes, such as the parts that are assemble into a car. On the other han, nonmanufacturing resources inclue the resources that are use in non-manufacturing processes such as research an evelopment. Non-manufacturing resources that are use across the value chain processes ha long receive far less attention in the manufacturing sector (Hilton et al., 2003). Copyright 2014 Centre for Info Bio Technology (CIBTech) 5013

4 In comparison to manufacturing resources, non-manufacturing resources cover a wier range of resources; they typically represent a significant portion of the cost structures of some organizations. The relevant expecte costs inclue all costs that can be ientifie across the value chain. The processes an activities that the organization employs across the value chain etermine how it uses its resources. Following moel is presente for solving these problems. Figure 1 is illustrate the Conceptual moel of the research. Step 1: application of Balance Scorecar We efine perspectives of BSC that are vital for access of strategy. With acceptance strategic imensions of BSC, we can be use them as a framework to collect, classify an Organize activity information an cost. In orer to this, initial step, getting the clear perception of corporation processes. It is applie by ientifying important activity imensions. Then eveloping list of activities an creating an initial Moel. Figure 2 is a generic representation of a combine ABC/BSC moel using the activity imensions presente by Kaplan an Norton (Kaplan an Norton, 1996). Information collection is oing base on categorization of ientifie activities in activity imensions. This information is base on previous literature an interview with managers an experts in the organization. Step 2: Application of Activity Base Costing (ABC) ABC is centralize on activities as basic factors of cost an using activities' costs as main structure for gathering costs. In this system, the argument is that prouction nee to oing various activities an activities are consumer of resources. So, in ABC, initially overhea costs allocate to activities. Then allocate costs to activities base of factors that name "cost river", allocating them to proucts or prouction lines. ABC system ientifying, operational organization costs, relation between these costs an performe activities, relationship of final performe activities with manufacturing's proucts an serves. Main goal of ABC system is ientification an elimination of activities an costs that have no value ae. Generally, in this stage, we perform cost Collection an information of cost rivers; it consists of work on gathere information in previous stage to estimate costs of activity imensions an cost objectives. It performe by gathering cost resources for processes, link processes to each objective of cost, calculate cost of each unit cost river, an at finally allocating costs of cost s objectives. Step 3: Application of Analytic Hierarchy Process (AHP) Goal programming is a capable tool to consiering simultaneously several factors in ecision making. A problem that has to consier in this moel is how prioritizing goal, constraints an coefficient of penalty take into account for each eviation. Goal programming can t perform it. Furthermore, application of intangible an qualitative criteria is out of capable this programming. So use of AHP can cover weaknesses of Goal programming. Finally, it can provie an aequate moel for organization s ecisionmaking. AHP can use for prioritizing perspectives of BSC, if has been use orinal ranking in Goal programming. pi is a priority of th activity, For example, if goals relate to internal process perspective as prouction an marketing costs have high importance than goals insie customer perspective as avertisement an guarantee costs, in this state, minimizing aitive weight of unesirable eviations of internal process perspective that have more priority, an this perspective is p 1 an goals insie customer perspective is p 2.In cases where Deviation variables have a same measurement unit, for example, if overall goals in internal process perspective were unitize ollar, in this state have to use carinal ranking. For getting specific weight to each variable can use AHP metho. Otherwise, several heterogeneous units (ollar, market s share) cannot use of this metho. Goal programming has ability to simultaneous use of both orinal an carinal weighing. We use of experts' opinions for oing pair wise comparisons in AHP metho. Step 4: Presentation mathematical moel by Goal programming: One of the ecision-making methos with multiple objectives is Goal programming. Basic of Goal programming is ientification specific number as a goal for each of objectives, then formulating relate Copyright 2014 Centre for Info Bio Technology (CIBTech) 5014

5 objective function an answer is searche to minimize aitive weight of unesirable eviations of each objective than the goal is ientifie for them(schrage, 2003). Positive eviations are usually isplaye by i an negative eviations are isplaye by i. Each of two eviations must be non-negative. Goal programming moels are constitute of four critical sections: 1. Decision variables: Decision variables of goal programming are similar Decision variables in linear programming. 2. Systematic constraints: this constraints isplay crisp constraints an no eviation allow in them. System an crisp constraints must be satisfie firstly, before a goal constraint is consiere. 3. Goal constraints: Goal constraints isplay esire levels or specific value that must be access to it. 4. Objective function: objective function in goal programming moel is formulate to minimize aitive of unesirable eviations. So, structure of function relate to weighting system to objectives (Jones an Tamiz, 2010). Suggeste goal programming moel is presente in following: MinZ P1 W1 ( w1 w2... w ) 2 2 ( n n P W w n w 1 w n n n 2 m P 3W3( ) wm 4 4( 1 m wm m wk P W wk 1 2 k k wk k 2 S. T n aij x j i j1 n aij x j j1 bi i i, i 0 x j, i, i, bi, bi 0 p ( i 1,2,3,4 ) bi i : Denoting priority of BSC perspectives that their cost eviations must be minimize. w i ( i 1,2,3,4 ) : Weights allocate to each imension of BSC that calculate by AHP. w t : Weights allocate to eviation variables, that calculate by AHP. i, i : Respectively, are as positive an negative eviations. a ij : Represent consumption coefficients of resource/activity. i 1,2,..., j 1,2,... i b : Desirable level of goals. Objective function of Goal programming moel Constitute of four segments. These four segments efine in base of four Goal constraints. First segment, minimize cost eviations in Finance imension, secon, thir an fourth segments, respectively isplaye cost eviations of internal business processes, customer, learning an Growth (Figure 3). It is necessary to calculate importance s coefficient (egree) an priority, for each section of eviation. An Empirical Example To assess the propose moel, we examine it in one of the car manufacturing inustries in Iran. Automotive inustry is a strategic an important inustry. Therefore, implementing a successful StraCM system can play an important role in the success of these organizations an achieve them strategic objectives. Hence, Iran Khoro Company has been establishe below strategies: Copyright 2014 Centre for Info Bio Technology (CIBTech) 5015

6 Moving towar the targete cost management system in Iran Khoro group. Ientification costing system to etermine effective cost. Ientify the appropriate system of internal activity cost (proucts an services) between Iran Khoro companies. Regarless of the type of strategy, organizations shoul offer Acceptable price to their customers. With increase competition between omestic an foreign automakers, customers will not pay any price to purchase their esire vehicle. Collecting ata about moel parameters was very time consuming an ifficult. Because, the main focus of this moel is the cost ata that offering them have limitations. However, with given limitations, we attempte to test the mathematical moel for prouction of two automobile moels A an B. Decision Variables an Parameters Variables x 1: Number of moel A, which must be prouce x 2 : Number of moel B, which must be prouce Parameters: p i ( i 1,2,3,4 ) : Denoting priority of BSC perspectives that their cost eviations must be minimize. w i ( i 1,2,3,4 ) : Allocate weights to each imension of BSC calculate by AHP for prioritizing the goals. w t : Weights assigne to eviation variables that resulte by AHP i, i : enoting positive an negative eviations. t : ( : 1,..., 18) unesirable eviations of internal business process imension ( :19, 20, 21) unesirable eviations of customer imension ( : 23) unesirable eviations of financial imension (Loan) ( : 24, 25) unesirable eviations of learning an growth imension 22 : Unesirable eviations of financial imension (Profitability) y i : ( i: 10, 11,..., 19) authorize istributors of moel A. y j : ( j: 20, 21,..., 29) authorize istributors of moel B. Buget constraints for both moels A an B are million Rials an other cost etails have mentione in Table 1, 2. The general moel of goal programming can be written in the following manner: MinZ P1(0.399)( ) P2(0.278)( ) P 3(0.207)( P 4(0.116)( ) Goal Constraints Goal constraints of prouction Goal constraints of assembly (Stock Material) Copyright 2014 Centre for Info Bio Technology (CIBTech) 5016

7 Goal constraints of work by machine (Stock Material) Goal constraints of Painting (Stock Material) Goal constraints of cut (Stock Material) Goal constraints of Press (Stock Material) Goal constraints of assembly (unit- hour / worker) Goal constraints of assembly (unit- hour / supervision) Goal constraints of work by machine (unit- hour / worker) Goal constraints of work by machine (unit- hour / supervision) Goal constraints of Painting (unit- hour / worker) Goal constraints of Painting (unit- hour / supervision) Goal constraints of cut (unit- hour / worker) Goal constraints of cut (unit- hour / supervision) Goal constraints of press (unit- hour / worker) Goal constraints of press (unit- hour / supervision) Goal constraints of fuel Goal constraints of electronic Goal constraints of marketing & selling Goal constraints of transportation Goal constraints of guarantee Goal constraints of profitability Goal constraints of getting loans Goal constraints of R&D Goal constraints of training 25 Systematic Constraints X X Copyright 2014 Centre for Info Bio Technology (CIBTech) 5017

8 Prouction Inian Journal of Funamental an Applie Life Sciences ISSN: (Online) 85X 1 70X Constraints of Automobile Demans by Authorize Distributors y y y y y y y y y y x y 20 y21 y22 y23 y24 y25 y26 y27 y28 y29 x2 0 y y y y y y y y y y y y y y y y y y y y RESULTS AND DISCUSSION Result After solving problem with the Lingo software, accoring to Table 3, following results has obtaine an in seven cases of activity, eviation from ieal has observe. Table 1: Data / cost rivers relate to the consumption of resources Moel Cost Unit cost Target cost Unit rate (Rial) (Rial) A unit- hour / worker B 14.7 A (unit- hour / supervision) B 13.5 A Raw material B 33 A unit- hour / worker B 28.8 A (unit- hour / supervision) B 19 A Raw material B 122 A unit- hour / worker B 15 A (unit- hour / supervision) B 9.5 A Raw material B 121 A unit- hour / worker B 39 A (unit- hour / supervision) B 27.5 A Raw material B 70 A unit- hour / worker B 12 A (unit- hour / supervision) B 7.5 A Raw material B 21 Activities Assembly Machining Painting Cutting Press Copyright 2014 Centre for Info Bio Technology (CIBTech) 5018

9 BSC perspectives Inian Journal of Funamental an Applie Life Sciences ISSN: (Online) Table 2: Cost Consumption coefficient an prouction capacity Activities Aspiration level (Rial) Moel A (Consumpti on coefficient) 4500 * * Moel B (Consumptio n coefficient) Internal Prouction cost Business Material supply * * Process Work force * * Maintain & Support Fuel ( ) 8 Electronic ( ) 10 Customer Selling & Marketing cost Transportation Guarantee Finance Profitability Loans Learn an R&D Grow Training Systematic Prouction capacity constraint (volume) Total cost per unit (Rial) * They were escribe in Table 1 Table 3: Amounts eviations from goals Amount eviation from Kin of activity goal (1000 Rial) assembly (Stock Material) ( ) 2 cut (Stock Material) ( ) 5 Press (Stock Material) ( ) 6 Painting (unit- hour /supervision) ( ) 12 press (unit- hour / worker) ( ) 15 press (unit- hour / supervision) ( ) 16 transportation ( ) 20 Prouction Customer Table 4: Optimum level of prouction Optimum number of prouction Kin of automobile Moel A (x 1 ) Moel B (x 2 ) Copyright 2014 Centre for Info Bio Technology (CIBTech) 5019

10 In aition, we coul obtain the optimal level of prouction that in this example is two moel of automobile (table 4). Conclusion This stuy propose an effective combine moel of BSC/ABC an Goal programming for solving problems such as optimum allocation of resources to valuable activities, StraCM an access to strategic objectives like cost leaership. In aition, this moel can improve the capability of mathematical moels like goal programming to optimize ecision-making an calculate the optimum level of prouction. The main benefits of the an integrate system of ABC/BSC an goal programming presente in this stuy can establish a communication system that briges the existing gap between StraCM an making optimum an strategic ecisions. Figure 1: The Conceptual moel of the propose approach Copyright 2014 Centre for Info Bio Technology (CIBTech) 5020

11 Figure 2: Aapte from generic representation of the ABC/BSC moel by Kaplan & Norton (Kaplan an Norton, 1996) Copyright 2014 Centre for Info Bio Technology (CIBTech) 5021

12 Hierarchical structure of example Internal business Process (0.278) Customer (0.207) Financial (0.399) Learning An growth (0.116) Prouction (0.34) Material supply (0.31) Work force (0.24) Maintain & suport (0.11) Selling & Marketing (0.57) Transportation (0.25) Guarantee (0.18) Profitability (0.57) Loans (0.25) R & D (0.67) Training (0.33) Figure 3: Hierarchical structure of example on BSC framework In this stuy, we aopte a goal programming moel to solve the propose ABC/BSC moel, ifficult to quantify an cause-an-effect relationship among various perspectives. An important avantage of this approach is that the interaction of the perspectives an activities can we clearly ientifie, also applie AHP structure can create clear perception of experts tenency in the organization. We coul gather experts opinions an allocate weights of each perspectives an key activities through the pair wise comparisons. This weighting system can be effective in the ecision making process an optimum allocation of resources an access to cost targets. Future stuies may exten the combine moel with other tools an techniques of StraCM. Finally, this moel can be use to other inustries. REFERENCES Carinaels E an Van Veen-Dirks PMG (2010). Financial versus non-financial information: The impact of information organization an presentation in a Balance Scorecar. Accounting, Organizations an Society Cooper R (1996). Costing techniques to support corporate strategy: evience from Japan. Management Accounting Research Cooper R, Slagmuler R, Research IFFA an Accountants IOM (1997). Target Costing an Value Engineering (Prouctivity Press). Dossi A an Patelli L (2010). You Learn From What You Measure: Financial an Non-financial Performance Measures in Multinational Companies. Long Range Planning El Kelety I (2006). Towars a conceptual framework for strategic cost management-the concept, objectives, an instruments. Universitätsbibliothek er Technischen Universität. Ellram LM an Stanley LL (2008). Integrating strategic cost management with a 3DCE environment: Strategies, practices, an benefits. Journal of Purchasing an Supply Management Govinarajan V an Shank JK (1992). Strategic cost management: tailoring controls to strategies. Journal of Cost Management Copyright 2014 Centre for Info Bio Technology (CIBTech) 5022

13 Hilton RW, Maher M an Selto FH (2003). Cost Management: Strategies for Business Decisions (McGraw-Hill/Irwin). Jones D an Tamiz M (2010). Practical Goal Programming (Springer Verlag). Kaplan RS, Anerson SR an Research HBSDO (2004). Time-riven activity-base costing. Division of Research, Harvar Business School. Kaplan RS an Davi P Norton (1992). The balance scorecar Measures that rive performance. Harvar Business Review Kaplan RS an Norton DP (1996). Using the balance scorecar as a strategic management system. Harvar Business Review Kaplan RS an Norton DP (2001). The Strategy-Focuse Organization: How Balance Scorecar Companies Thrive in the New Business Environment (Harvar Business Press). Martinsons M, Davison R an Tse D (1999). The balance scorecar: a founation for the strategic management of information systems. Decision Support Systems Porter ME (1998). Competitive Avantage: Creating an Sustaining Superior Performance: with a New Introuction (Free Press). Schrage L (2003). Optimization Moeling with LINGO (Chicago, IL LINDO Systems Inc.). Shank JK an Govinarajan V (1993). Strategic Cost Management: The New Tool for Competitive Avantage (Free Press). Shapiro JF (1999). On the connections among activity-base costing, mathematical programming moels for analyzing strategic ecisions, an the resource-base view of the firm. European Journal of Operational Research Venkatramanan A (2006). Developing a strategic cost management moel: combininig the balance scorecar an activity-base costing in the context of iabetes eucation. Wanga C, Lu IY an Chen C (2010). Integrating hierarchical balance scorecar with non-aitive fuzzy integral for evaluating high technology firm performance. International Journal of Prouction Economics. Wu HY, Tzeng GH an Chen YH (2009). A fuzzy MCDM approach for evaluating banking performance base on Balance Scorecar. Expert Systems with Applications Copyright 2014 Centre for Info Bio Technology (CIBTech) 5023