A model of economic evaluation for the acquisition of flexible manufacturing technologies

Pedro Palominos, Luis Quezada, Javier Donoso, Miguel Gonzalez

Research output: Contribution to journalConference articlepeer-review

Abstract

Manufacturing companies have to withstand a growing global competition on different strategic dimensions like production costs, product quality, flexible manufacturing and product innovation. To cope with this increased competition, companies invest in solutions based on flexible idea, as flexible assembly systems, flexible selection and picking systems, automated warehouses, etc. However, the high level of technical sophistication and the high investment of this type of technology make the selection of flexible technologies difficult. A linear programming model is proposed, based on the concepts of manufacturing flexibility to make investment decisions when manufacturing multiple products. Finally, we present a numerical example in which optimal acquisition decisions and the value of flexibility are calculated in the context of the decision to invest in the manufacturing plant.

Original languageEnglish
Pages (from-to)565-573
Number of pages9
JournalProcedia Manufacturing
Volume39
DOIs
Publication statusPublished - 1 Jan 2019
Event25th International Conference on Production Research Manufacturing Innovation: Cyber Physical Manufacturing, ICPR 2019 - Chicago, United States
Duration: 9 Aug 201914 Aug 2019

Keywords

  • Evaluation
  • Flexibility
  • Industry 4.0
  • Investment
  • Manufacturing system

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering
  • Artificial Intelligence

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