Valuing the Flexibility of Flexible Manufacturing Systems

IEEE Transactions on Engineering Management

Volumn 35, Issue 4, 1988, Pages 250-257

  Kulatilaka, Nalin ^a  

^a BOSTON UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

INDUSTRIAL MANAGEMENT; MATHEMATICAL PROGRAMMING, DYNAMIC;

OPTIMAL MODE-SWITCHING DECISION RULES; STOCHASTIC DYNAMIC MODEL;

INDUSTRIAL PLANTS;

EID: 0024107189     PISSN: 00189391     EISSN: 15580040     Source Type: Journal    
DOI: 10.1109/17.7447     Document Type: Article

References (18)

1. P. Adler, “Managing flexibility: A selective review of the challenges of managing the new production technologies potential for flexibility,” Dep. Ind. Eng., Eng. Manag., Stanford Univ., Stanford, CA, Mimeo, 1985.
2. E. Berndt and D. Wood, “Engineering and economic interpretations of capital-energy complementarity,” Amer. Econ. Rev., vol. 69, no. 3, pp. 342–354, June 1979.
3. R. Bohn and R. Jaikumar, “The dynamic approach: An alternative paradigm for operations management,” Harvard Business School, Harvard Univ., Cambridge, MA, Working Pap., 1987.
4. J. Cox and S. Ross, “The valuation of options for alternative stochastic processes,” J. Finan. Econ., vol. 3, pp. 145–166, 1976.
5. C. Fine and R. Freund, “Optimal investment in product-flexible manufacturing capacity, Part I: Economic analysis,” Sloan School of Management, M.I.T. Cambridge, MA, Working Paper 1803–86, 1986.
6. M. Graham and S. Rosenthal, “Institutional aspects of process procurement for flexible manufacturing systems,” Manufacturing Roundtable, Boston Univ., Boston, MA, Working Pap., 1986.
7. R. Jaikumar, “Postindustrial manufacturing,” Harvard Bus. Rev., pp. 69–76, Nov-Dec. 1986.
8. R. A. Jones and J. M. Ostroy, “Flexibility and uncertainty,” Rev. Econ. Studies, vol. LI, pp. 13–32, 1984.
9. W. C. Kester, “Today’s options for tomorrow’s growth,” Harvard Bus. Rev., Mar-Apr. 1984.
10. N. Kulatilaka, “Capital budgeting and optimal timing of investments in flexible manufacturing systems,” Annals Oper. Res., vol. 3, pp. 35–57, 1985.
11. N. Kulatilaka, “The value of flexibility,” MIT Energy Laboratory, M.I.T. Cambridge, MA, Working Pap. MIT-EL 86-014WP, 1986 (revised May 1987).
12. N. Kulatilaka and S. Marks, “The strategic value of flexibility: reducing the ability to compromise,” Amer. Econ. Rev., pp. 574–580, June 1988.
13. N. Kulatilaka and A. Marcus, “A general formulation of corporate operating options,” in Research in Finance, A. Chen, Ed., in press.
14. T. Marsh and E. Rosenfeld, “Stochastic processes for interest rates and equilibrium bond prices,” Harvard Business School, Harvard Univ., Cambridge, MA, Workshop Pap. 83–45, 1983.
15. R. L. McDonald and D. Siegel, “Option pricing when the underlying asset earns a below equilibrium rate of return: a note,” J. Finance, vol. 39, no. 1, pp. 261–266, Mar. 1984.
16. G. E. Monahan and T. L. Smunt, “The FMS investment decision,” in ORSA/TIMS Conf. Proc., Nov. 1984.
17. Y. H. Son and C. S. Park, “Economic measure of productivity, quality and flexibility in advanced manufacturing systems,” J. Manuf. Syst., vol. 6, no. 3, pp. 193–207, 1987.
18. N. C. Suresh and J. R. Meredith, “Justifying multimachine systems: An integrated strategic approach,” J. Manuf. Syst., vol. 4, no. 2, 1985.