A sequential model for concurrent expansion in machinery and buildings using reinvested earnings

Abstract

Gradual phasing out of manual methods through sequential substitution of machines may well represent the only viable manufacturing strategy option for many job shops particularly in developing countries. For such job shop projects with limited capital, investment in buildings and machines needs to be phased so as to benefit from added capital from reinvested earnings. Describes a dynamic integer model suitable for such investment scheduling. Suggests that the model was solved with a readily implementable heuristic which employs suitable decision rules for scheduling machinery purchases and factory space construction in modular units. The model will find ready application in emerging job shop projects of many developing countries.

Citation

Aderoba, A. (1997), "A sequential model for concurrent expansion in machinery and buildings using reinvested earnings", Integrated Manufacturing Systems, Vol. 8 No. 4, pp. 223-230. https://doi.org/10.1108/09576069710182045