Costing of the Production and Delivery of Ready-Mix-Concrete

The paper presents a model for costing production and transportation of ready-mix-concrete (rmc) based on type of the mix and customer site information. the on-floor cost of the mix is based on the type of concrete and is estimated using activity based costing (abc). the cost of transporting rmc to customer's site is obtained as a function of traveling distance, traffic factor, and demand. volume-based discounts, penalty for late delivery, and cost of mix spoilage are considered. moreover, the paper provides a cost ground for improving the rmc production system using activity based management (abm) to improve the financial performance of the company. the proposed model is applied at a local rmc company where obtained results show differences between the costing system of the company and that using the proposed model.