The objective of this work is to describe a method of assessing the flexibility of a manufacturing system, in an uncertain market environment, under lifecycle considerations. The flexibility of a manufacturing system is determined by statistical analysis of the discounted cash flow (DCF) estimates of the manufacturing system's lifecycle cost, over a time horizon and for a large variety of market scenarios. The system's lifecycle cost is calculated at a minimum level with the help of a specially developed algorithm. The method is used in a test case for investing in a production system, using real-life data derived from the automotive industry.
No takes yet. Share an insight, caveat, or question.
Alexopoulos et al. (2006) studied this question.
Synapse has enriched one closely related paper. Consider it for comparative context: