TY - JOUR

T1 - A chance-constraints linear programming model on the economic evaluation of flexible manufacturing systems

AU - Chang, Dong Shang

AU - Tsou, Ching Shih

PY - 1993/1/1

Y1 - 1993/1/1

N2 - The implementation of flexible manufacturing systems (FMSs) normally entails a large initial investment under a long-term, uncertain environment. Many effects of installing a FMS will be due to improvement in throughput efficiency, quality, flexibility and the opportunity costs. However, most economic evaluations of FMSs assume the problem is deterministic, such that they fail to model accurately and capture the nature of FMSs. This paper uses stochastic variables to capture the, nature of a FMS under given resource limitations and leads to a multistage chance-constraints linear programming (LP) formulation. Finally, in order to incorporate the uncertainty of capital investment, the interest rate as a function of time is considered over the whole planning horizon and the decision model is extended under continuous and variable discounting.

AB - The implementation of flexible manufacturing systems (FMSs) normally entails a large initial investment under a long-term, uncertain environment. Many effects of installing a FMS will be due to improvement in throughput efficiency, quality, flexibility and the opportunity costs. However, most economic evaluations of FMSs assume the problem is deterministic, such that they fail to model accurately and capture the nature of FMSs. This paper uses stochastic variables to capture the, nature of a FMS under given resource limitations and leads to a multistage chance-constraints linear programming (LP) formulation. Finally, in order to incorporate the uncertainty of capital investment, the interest rate as a function of time is considered over the whole planning horizon and the decision model is extended under continuous and variable discounting.

UR - http://www.scopus.com/inward/record.url?scp=0348038274&partnerID=8YFLogxK

U2 - 10.1080/09537289308919433

DO - 10.1080/09537289308919433

M3 - 期刊論文

AN - SCOPUS:0348038274

SN - 0953-7287

VL - 4

SP - 159

EP - 165

JO - Production Planning and Control

JF - Production Planning and Control

IS - 2

ER -