Advertisement

Justification of Manufacturing Systems

  • F. Choobineh
Conference paper
Part of the Progress in Material Handling and Logistics book series (LOGISTICS, volume 2)

Abstract

Possibility distributions are recommended for explicit representation of uncertainty in models used for justification of manufacturing systems. A procedure is presented that is capable of obtaining and combining the possibility distributions of strategic and economic aspects of an investment situation. A numerical example is presented, and a method of ranking alternatives is discussed.

Keywords

Cash Flow Justification Procedure Interval Arithmetic Possibility Distribution Justification Process 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Bavishi, V.B., “Capital Budgeting Practices at Multinationals,” Management Accounting, August, pp. 32–35 (1981).Google Scholar
  2. 2.
    Behrens, A.M. and F. Choobineh, “Can Economic Uncertainty Always be Described by Randomness?” Proceedings of IIE Conference, Toronto, pp. 116-120(1989).Google Scholar
  3. 3.
    Benzion, V. and J. Yagil, “On the Discounting Formula for a Stream of Independent Risky Cash Flows,” The Engineering Economist, 32, pp. 337–345 (1987).CrossRefGoogle Scholar
  4. 4.
    CAM-I, Inc., “Management Accounting in Advanced Manufacturing Environments,” Arlington, TX, 32 Pages (1988).Google Scholar
  5. 5.
    Canada, J. and W. Sullivan, Economic and Multiattribute Evaluation of Advanced Manufacturing Systems, Prentice Hall, (1989).Google Scholar
  6. 6.
    Choobineh, F., “Modeling Uncertainty in Economic Justifications of Manufacturing Systems,” Proceeding of IIE Integrated System Conference, Atlanta, pp. 605-611 (1989).Google Scholar
  7. 7.
    Dong, W. and H.C. Shah, “Vertex Method for Computing Functions of Fuzzy Variables,” Fuzzy Sets and Systems, 14, pp. 65–78 (1987).CrossRefMathSciNetGoogle Scholar
  8. 8.
    Falter, B. and F. Choobineh, “CAM Economic Justification — A Case Study in Electronic Industry,” in Productivity and Quality Improvement in Electronics Assembly, McGraw-Hill, pp. 523–535 (1988).Google Scholar
  9. 9.
    Fama, E.F., “Risk-Adjusted Discount Rates and Capital Budgeting Under Uncertainty,” Journal of Financial Economcs, 5, pp. 3–24 (1977).CrossRefGoogle Scholar
  10. 10.
    Grablowsky, B J. and W.L. Burns, “The Application of Capital Allocation Techniques by Small Business,” Journal of Small Business Management, 18, 3, pp. 50–67 (1980).Google Scholar
  11. 11.
    Kaplan, S.K., “Must CIM be Justified by Faith Alone?” Harvard Business Review, March–April, pp. 87-95 (1986).Google Scholar
  12. 12.
    Kim, S.H. and T. Crick, “Foreign Capital Budgeting Practices Used by the U.S. and Non-U.S. Multinational Companies,” The Engineering Economist, 29, 3, pp. 207–215 (1984).CrossRefGoogle Scholar
  13. 13.
    Moore, R.E., Methods and Applications of Interval Analysis, SIAM, Philadelphia (1979).CrossRefMATHGoogle Scholar
  14. 14.
    Pike, R., “Do Sophisticated Capital Budgeting Approaches Improve Investment Decision-Making Effectiveness?” The Engineering Economist, 34, 2, pp. 149–161 (1988).CrossRefGoogle Scholar
  15. 15.
    Robicheck, A.A. and S.G. Myers, “Use of Risk-Adjusted Discount Rates,” Journal of Finance, 21, pp. 727–730 (1966).CrossRefGoogle Scholar
  16. 16.
    Tseng, X.Y. and C.M. Klein, “New Algorithm for the Ranking Procedure in Fuzzy Decision Making,” IEEE Trans. on Systems, Man, and Cybernetics, 19, 5, pp. 1289–1296 (1989).CrossRefMathSciNetGoogle Scholar
  17. 17.
    Yager, R.R., “Fuzzy Design Making Including Unequal Objectives,” Fuzzy Sets and Systems, 1, pp. 87–95 (1978).CrossRefMATHGoogle Scholar
  18. 18.
    Zadeh, L.A., “Fuzzy Sets,” Info. Control 8, pp. 338–353 (1965).CrossRefMATHMathSciNetGoogle Scholar
  19. 19.
    Zadeh, L.A., “Fuzzy Sets as a Basis for a Theory of Possibility,” Fuzzy Sets and Systems, 1, pp. 3–28 (1978).CrossRefMATHMathSciNetGoogle Scholar

Copyright information

© Springer-Verlag Berlin, Heidelberg 1991

Authors and Affiliations

  • F. Choobineh
    • 1
  1. 1.University of Nebraska-LincolnUSA

Personalised recommendations