Article ID: | iaor1990886 |
Country: | United Kingdom |
Volume: | 28 |
Issue: | 6 |
Start Page Number: | 1183 |
End Page Number: | 1194 |
Publication Date: | Jun 1990 |
Journal: | International Journal of Production Research |
Authors: | Son Young K., Park Chan S. |
Opportunity costs associated with adding manufacturing flexibility are one of the most important manufacturing performance measures of factory automation. Opportunity costs consist of the nonconventional costs of set-up, part waiting, equipment idle and inventory, which measure product, process, equipment and demand flexibility, respectively. The nonconventional costs are estimated using a computer simulation. An example shows the cost estimtion procedure.