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Economic justification for incremental implementation of advanced manufacturing systems

Author

Listed:
  • V Lotfi

    (University of Michigan)

  • J Sarkis

    (Clark University)

  • J H Semple

    (Southern Methodist University)

Abstract

The strategic decision to integrate Advanced Manufacturing Systems (AMS) within a traditional production system has become an attractive and sometimes necessary alternative in many industrial settings. The purpose of this paper is to develop a model that focuses on this particular decision-making problem. Simplifications and approximations introduced at the operational level permit two key issues to be addressed: (1) where should AMS be implemented; and (2) when should this implementation occur. The model is shown to have good structure for a simplified analysis, thus making it particularly useful in instances where only rough estimates of costs are available and extensive ‘what if’ type analyses are therefore required.

Suggested Citation

  • V Lotfi & J Sarkis & J H Semple, 1998. "Economic justification for incremental implementation of advanced manufacturing systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 49(8), pages 829-839, August.
    • Handle: RePEc:pal:jorsoc:v:49:y:1998:i:8:d:10.1057_palgrave.jors.2600573
    DOI: 10.1057/palgrave.jors.2600573
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    Cited by:

    1. S Y Sohn & Y Kim & B T Kim, 2009. "Cost of ownership model for spare engines purchase for the Korean navy acquisition program," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(12), pages 1674-1682, December.

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