Integrating queueing theory and the Time-Driven abc model: an Analysis of idle capacity - doi: 10.4025/enfoque.v28i1.8219

Abstract

With the rise of ABC, an improvement in the investigation of indirect costs was expected. However, thechallenges of implementing the model slowed its dissemination as expected in the business world. Totry to resolve this difficulty, Kaplan and Anderson (2004) created the Time-Driven ABC model, whichfocuses all activities in only one variable: time. However, the model uses as an investigation of thepractical capacity a random variable from 80% to 85% of theoretical capacity, without any measurement.This article aims to study the possibility of using the model of queueing theory as a yardstick for idlecapacity, thus investigating the practical ability to add to the Time-Driven ABC model. A data simulation was used to demonstrate the usefulness of queueing theory in this model, showing the calculations ofcosts before and after the inclusion of data from idle capacity obtained through queueing theory. Inregards to the methodology, a hypothetical data analysis was conducted with a simulation of values.The results show that queueing theory is a practical way to find the actual time during with the systemis idle, eliminating any subjectivity from cost calculations.