Product Rotations and the Economics of an Adaption-Flexible Manufacturing System
Additional Document Info
A conceptual model for choosing between flexible and conventional production systems on the basis of their “adaption-flexibility” properties is presented. Even though it is economic to “retool” more frequently with this type of flexibility, aggregate discounted retooling costs are shown to fall when flexible technologies replace conventional technologies. Thus, the major factor mitigating against the newer technologies is their higher set-up costs.