An activity-based model contains mathematical models of each
processing center, along with yields from each center, and the recipes
(input ratios) for each work center. Inventories are normally kept
minimal in order to minimize their impact on the results.
The resulting model produces detailed costs for each product produced
(including costs at each step).
Changes in the model can be used to evaluate "what-if"
decisions.
This model runs in a multi-mill company, with more than 600
plywood products, and 70 work centers.
