search query: @author Park, C.S. / total: 3
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| Author: | Prueitt, G.C. Park, C.S. |
| Title: | Incremental automation with sampling applied to an advanced manufacturing system |
| Journal: | Engineering Economist
1990 : Summer, VOL. 35:4, p. 255-294 |
| Index terms: | CAPITAL INVESTMENT CAPITAL BUDGETING PROJECT APPRAISAL MANUFACTURING CASH FLOW BAYESIAN STATISTICS |
| Language: | eng |
| Abstract: | A capital budgeting model in the area of project control is examined, and a method is proposed that incorporates post-audit information as an active element in the decision to maintain or terminate a project. Project selection is based primarily on anticipated performance as determined from the most accurate available information. It was shown how the Dirichlet distribution can be utilized to formulate appropriately weighted prior probability beliefs, and how these initial beliefs can be updated by post-audit information. For this purpose categorized cash flow data were incorporated in a unique Bayesian-based framework. A case study of an automation decision for a flexible manufacturing system is presented. |
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