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This article will try to define which type of cost calculation will help generating the highest economic value by the supply chain in a situation in which a steel-making company is facing a decrease of market demand. In such a situation, production and sales of the company are decreasing in time. This leads to an increase in fixed cost assigned to products. In a standard situation, the company will try to increase the selling price of such products to cover the fixed cost increase but in our situation the market will not allow it. Some products can now generate negative profitability and the company may decide to stop selling them for the price that the market allows, because it seems that they are generating loss. This will lead to further decrease of production and again, an increase of fixed cost for products. This spiral makes the situation worse and worse. To avoid such a development, the company must change its approach to job cost calculation. Methodology must be changed in a way which will support accepting all jobs that will help cover the fixed cost in the maximum possible amount. This approach will ensure that the supply chain will generate in this complicated situation the highest possible economic value. This is one of the necessary measures that can make the company one of the final market survivors.

Keywords: Supply chain; cost calculation

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