Abstract
Traditional methods for the economic justification of new manufacturing technologies fail to include benefits such as better quality, greater flexibility and reduced work-in-progress. In this paper we develop a technique to quantify the economic value of long-term flexibility in capacity through the use of dynamic programming. We define the economic value of flexibility as the difference in the net present value of profits that a flexible system achieves over a less flexible system. Two examples are presented.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
