Multiobjective evaluation of advanced manufacturing system technology investments with risk

Johann G. Demmel, Ronald Askin

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

Advanced manufacturing system technologies are difficult to evaluate using ordinary financial measures owing to the presence of risk and significant intangible factors. In this paper a methodology is proposed that quantifies financial, strategic, and tactical attributes of each alternative. Attribute values are defined for each period of project life. Both project life and attributes are treated as random variables. Attributes are discounted to the current time and the multiple objectives are combined by composite programming. The distribution of the combined objective is estimated. The procedure is demonstrated on an actual case study.

Original languageEnglish (US)
Pages (from-to)249-259
Number of pages11
JournalIIE Transactions (Institute of Industrial Engineers)
Volume28
Issue number3
StatePublished - 1996

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Random variables
Composite materials
Technology investment
Manufacturing systems
Evaluation

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Management Science and Operations Research

Cite this

Multiobjective evaluation of advanced manufacturing system technology investments with risk. / Demmel, Johann G.; Askin, Ronald.

In: IIE Transactions (Institute of Industrial Engineers), Vol. 28, No. 3, 1996, p. 249-259.

Research output: Contribution to journalArticle

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