Application of ABC and TOC models in product pricing (Case study: Hamvatan dairy products company)

Deciding to accept or reject orders whose bid prices are different from the product sales prices of the company and in some cases lower than the usual selling price of the company is a problem that poses a huge challenge to the manufacturing companies. This research has been conducted to consider and compare the ABC and TOC models for pricing products produced by Hamvatan Company in 2016. In order to provide theoretical foundations of the research, library resources, journals and authoritative internet databases were used. The research hypothesis test was performed using paired t-correlated model using SPSS software. By calculating the cost and net contribution margin of the company's products, using the TOC and ABC models and comparing the results, we conclude that the TOC model in the short run provides more relevant results, and it is better to use ABC model for long-term decisions. Therefore, the results of this study indicate that the TOC and ABC models are considered complementary in sales decisions.