Particle swarm algorithm for cost allocation of major operational materials in an alloy steel plant
Ahmad Al Hammad · AFRICAN JOURNAL OF BUSINESS MANAGEMENT · 2012
This paper brings out the application of particle swarm technique for allocation of the major components of process cost to various qualities of alloy steel. The cost of the major operational materials such as refractories, electrodes and nipples, ingot moulds etc., cannot be directly allocated to each quality. Since the consumption of operational materials does not only depend on the time but also on the quality of the steel manufactured, the approach envisages the application of particle swarm algorithm to estimate the consumption pattern for each quality manufactured, so that a realistic quality-wise cost can be arrived at. Key words: Cost allocation, operational materials, alloy steel, particle swarm.