Allocation process between companies

The final traditional area of dispute concerns administrative costs. The phase I national allocation plans (NAPs) involved negotiation over allowances with a total asset value of almost 50 billion per year (assuming an average price of 20/tCO2). Political decisions on how to allocate these assets between sectors and individual installations naturally creates intensive lobby activity by all participants in order to obtain the maximum possible share of the rents.21 The time and energy devoted by companies, governments, and indeed consultancy and research sectors, to this enormous rent allocation process represents huge transactional costs.22... 

Since a fair allocation of costs requires considerable technical knowledge of operations in the chemical-process industries, a close liaison between the senior process engineers and the accountants in a company is desirable. Indeed, the success of a company depends on a combination of financial, technical, and managerial skills. 

The trend for companies to focus on core competencies has forced enterprises to collaborate closely with their suppliers as well as with their customers to improve business performance (Lutz et al. 1999). The next step in the supply chain concept is the production or supply networks (Figure 15), which are characterized by intensive communication between the partners. TTie aim of the system is to allocate among the collaborating partners the excess in production demand that could not be faced by one of them alone. This capability provides the entire network with the necessary flexibility to respond quickly to peaks in demand for the products. A tool developed at the Institute of Production Systems at Hanover University, the FAS/net, employs basic methods of production logistics to provide procedures for the efficient use of capacity redundancies in a production network. The tool satisfies the following requirements derived from the capacity subcontracting process ... 

---