A COMPREHENSIVE APPROACH TO ASSESS THE VALUE OF EDI

We describe a comprehensive approach that helps to assess the value of various courses of action that can be taken in implementing Electroni c Data Interchange (EDI). The approach consists of two components. The first relies on Activity-Based Costing and quantifies the costs and b enefits that are to be expected in the information processes when EDI is being used. The second uses discrete-event computer simulation to q uantify the costs and benefits to be expected in the physical logistic processes. The combination of the two results in an overall costs/ben efits analysis for a diverse set of EDI scenarios. (C) 1998 Elsevier S cience B.V. All rights reserved.