IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v136y2012i1p28-36.html
   My bibliography  Save this article

Economic feasibility analysis of flexible material handling systems: A case study in the apparel industry

Author

Listed:
  • Dai, James B.
  • Lee, Neville K.S.

Abstract

Flexible material handling systems (MHS) have been widely used to enhance productivity involved with product proliferation, and thus far, only fixed-track MHSs such as Eton systems in the apparel industry are commonly used. This paper explores the economic feasibility of a flexible MHS using free-ranging automated guided vehicles (AGV) with a local positioning system (LPS) for the apparel industry. A component-based and modified activity-based costing methodology is proposed to estimate the additional cost of adopting flexible MHSs, and then the internal rate of return (IIR) and payback periods are applied to evaluate the project economic performance. Results show that adopting flexible MHSs has a promising IIR which is larger than 30%.

Suggested Citation

  • Dai, James B. & Lee, Neville K.S., 2012. "Economic feasibility analysis of flexible material handling systems: A case study in the apparel industry," International Journal of Production Economics, Elsevier, vol. 136(1), pages 28-36.
    • Handle: RePEc:eee:proeco:v:136:y:2012:i:1:p:28-36
    DOI: 10.1016/j.ijpe.2011.09.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311003926
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2011.09.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Devise, Olivier & Pierreval, Henri, 2000. "Indicators for measuring performances of morphology and material handling systems in flexible manufacturing systems," International Journal of Production Economics, Elsevier, vol. 64(1-3), pages 209-218, March.
    2. Sujono, Sienny & Lashkari, R.S., 2007. "A multi-objective model of operation allocation and material handling system selection in FMS design," International Journal of Production Economics, Elsevier, vol. 105(1), pages 116-133, January.
    3. Kahraman, Cengiz & Tolga, Ethem & Ulukan, Ziya, 2000. "Justification of manufacturing technologies using fuzzy benefit/cost ratio analysis," International Journal of Production Economics, Elsevier, vol. 66(1), pages 45-52, June.
    4. Lashkari, R. S. & Boparai, R. & Paulo, J., 2004. "Towards an integrated model of operation allocation and material handling selection in cellular manufacturing systems," International Journal of Production Economics, Elsevier, vol. 87(2), pages 115-139, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jain, Vineet & Raj, Tilak, 2016. "Modeling and analysis of FMS performance variables by ISM, SEM and GTMA approach," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 84-96.
    2. Sandhya Dixit & Tilak Raj, 2018. "A Hybrid MADM Approach for the Evaluation of Different Material Handling Issues in Flexible Manufacturing Systems," Administrative Sciences, MDPI, vol. 8(4), pages 1-19, November.
    3. Ilias Vlachos & Rodrigo Martinez Pascazzi & Miltiadis Ntotis & Konstantina Spanaki & Stella Despoudi & Panagiotis Repoussis, 2022. "Smart and flexible manufacturing systems using Autonomous Guided Vehicles (AGVs) and the Internet of Things (IoT)," Post-Print hal-03825237, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pokharel, Shaligram, 2008. "A two objective model for decision making in a supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 378-388, February.
    2. Beskese, Ahmet & Kahraman, Cengiz & Irani, Zahir, 2004. "Quantification of flexibility in advanced manufacturing systems using fuzzy concept," International Journal of Production Economics, Elsevier, vol. 89(1), pages 45-56, May.
    3. K. C. Bhosale & P. J. Pawar, 2019. "Material flow optimisation of production planning and scheduling problem in flexible manufacturing system by real coded genetic algorithm (RCGA)," Flexible Services and Manufacturing Journal, Springer, vol. 31(2), pages 381-423, June.
    4. Abdi, M.R., 2009. "Fuzzy multi-criteria decision model for evaluating reconfigurable machines," International Journal of Production Economics, Elsevier, vol. 117(1), pages 1-15, January.
    5. Sandhya Dixit & Tilak Raj, 2018. "A Hybrid MADM Approach for the Evaluation of Different Material Handling Issues in Flexible Manufacturing Systems," Administrative Sciences, MDPI, vol. 8(4), pages 1-19, November.
    6. Bogdan Rębiasz, 2010. "Interactive fuzzy numbers in the evaluation of the effectiveness of investment projects and selection of efficient portfolios," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 20(3-4), pages 103-127.
    7. Silva, Andreia & Correia Simões, Ana & Blanc, Renata, 2024. "Supporting decision-making of collaborative robot (cobot) adoption: The development of a framework," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    8. Sujono, Sienny & Lashkari, R.S., 2007. "A multi-objective model of operation allocation and material handling system selection in FMS design," International Journal of Production Economics, Elsevier, vol. 105(1), pages 116-133, January.
    9. Cengiz Kahraman & Sezi Cevik Onar & Basar Oztaysi, 2016. "A Comparison of Wind Energy Investment Alternatives Using Interval-Valued Intuitionistic Fuzzy Benefit/Cost Analysis," Sustainability, MDPI, vol. 8(2), pages 1-18, January.
    10. A. Attila İşlier, 2015. "Cellular Manufacturing Systems: Organization, Trends and Innovative Methods," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 3(2), pages 13-26, December.
    11. Suman Gothwal & Tilak Raj, 2017. "Analyzing the factors affecting the flexibility in FMS using weighted interpretive structural modeling (WISM) approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 408-422, June.
    12. Tolga, Ethem & Demircan, Murat Levent & Kahraman, Cengiz, 2005. "Operating system selection using fuzzy replacement analysis and analytic hierarchy process," International Journal of Production Economics, Elsevier, vol. 97(1), pages 89-117, July.
    13. Yin, Yong & Yasuda, Kazuhiko, 2006. "Similarity coefficient methods applied to the cell formation problem: A taxonomy and review," International Journal of Production Economics, Elsevier, vol. 101(2), pages 329-352, June.
    14. Chang, Ping-Teng, 2005. "Fuzzy strategic replacement analysis," European Journal of Operational Research, Elsevier, vol. 160(2), pages 532-559, January.
    15. Wan, Nianfeng & Jiang, Jiexian & Ji, Xiangyun & Deng, Jianyu, 2009. "Application of analytic hierarchy process-based model of Ratio of Comprehensive Cost to Comprehensive Profit (RCCCP) in pest management," Ecological Economics, Elsevier, vol. 68(3), pages 888-895, January.
    16. Chakravorty, Satya S., 2009. "Improving distribution operations: Implementation of material handling systems," International Journal of Production Economics, Elsevier, vol. 122(1), pages 89-106, November.
    17. Kulak, Osman & Kahraman, Cengiz, 2005. "Multi-attribute comparison of advanced manufacturing systems using fuzzy vs. crisp axiomatic design approach," International Journal of Production Economics, Elsevier, vol. 95(3), pages 415-424, March.
    18. Antonella Petrillo & Fabio De Felice & Alessandro Silvestri & Domenico Falcone, 2016. "Lay-out optimisation through an integrated approach based on material flow and operations mapping using a commercial software," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 23(1), pages 113-134.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:136:y:2012:i:1:p:28-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.