Modeling the Firms Supply Side

Overview

Modeling the supply side of a company means modeling the production process that creates and manages the product that the company is selling. From a theoretical perspective, the mathematical description of a firm is provided by microeconomic theory.

Practical Modeling

Taking the theories of economists and business leaders and finding practical ways to measure and implement these ideas.

• Cost Allocation: is the process of taking a set of firm wide costs and attributing a portion of each cost to each product produced or service provided.
• Process Modeling: seeks to understand the process that a company undergoes to deliver a product or service, by mapping out the process into a series of steps, possibly by also specifying the inputs and outputs of each step.