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NEW TECHNOLOGY INVESTMENTS IN MULTISTAGE PRODUCTION SYSTEMS
Author(s) -
Chakravarty Amiya K.,
Shtub Avraham
Publication year - 1985
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1985.tb01678.x
Subject(s) - depreciation (economics) , production (economics) , net present value , investment (military) , capital budgeting , investment decisions , valuation (finance) , return on investment , scheduling (production processes) , industrial organization , business , economics , computer science , operations management , operations research , finance , microeconomics , financial capital , engineering , capital formation , profit (economics) , politics , political science , project appraisal , law
The introduction of new technologies in production and manufacturing (such as robotics, flexible manufacturing systems (FMS), and computer‐aided design and manufacturing (CAD/CAM)) frequently motivates capital investment decisions. Traditionally, the need for additional capacity has motivated the evaluation of investment decisions which were undertaken based on financial factors such as the net present value (NPV), internal rate of return, taxation, and depreciation. This research integrates investment decisions with operational decisions for the case of multistage production assembly systems. We show that for such systems investment decisions affect not only the financial structure but also production scheduling and material flow in the system.