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Author:Park, C.S.
Prueitt, G.C.
Title:Evaluating a New Technology Alternative: Case Study
Journal:Engineering Economist
1990 : FALL, VOL. 36:1, p. 31-54
Index terms:INNOVATION
INVENTORY CONTROL
MANUFACTURING INDUSTRY
AIRCRAFT INDUSTRY
CASE STUDIES
Language:eng
Abstract:This case study of Air Technology Corp. that manufactures several types of disks used in the construction of airplane turbine engines, examines the real situation where a considerable inventory savings exists by introducing an advanced manufacturing equipment. The new equipment provides much needed manufacturing flexibility for the production of the disks. This case also documents the actual economic analysis procedures conducted by the company by presenting the sensitivity analysis of the key input variables, probabilistic analysis and simulation analysis. The actual company name has been disguised. The manufacturing process and the investment alternatives are described, and the suggested economic analysis is supported by several numerical data.
SCIMA record nr: 86948
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