A research study submitted in partial fulfillment of the requirements for the degree of Master of Science, School of Engineering and Technology

Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 1985

During the feasibility study of FMS, we have to take into the account of its technical, operational, social and economical effects. This research study is to develop a methodology for the analysis of FMS concerning the economic evaluation or cost justification, from the user's point of view. This methodology will takes into the consideration of : a) The component's capabilities b) The market demand c) Income tax and incentive tax rates d) Component's depreciation e) Cost of capital investment f) The different options in obtaining the component (buy or lease) g) Inventory level h) Inventory cost and backlog cost i) Different in quality between products j) Different in flexibility between components A package using FORTRAN 77 runs on IBM 3038 OS/VS was developed. Besides giving the different performance of each system, from the output for the scheduling , we can obtain the number of shifts a subsystem has to perform in order to achieve the production requirement that is the demand quantity. We also obtain the inventory levels of each period.