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A Case Study on the Engineering Economic Decision for Receiving Orders in Automotive Parts Industry  

Kim, Jin-Wook (Depart. of Industrial and Systems Engineering, Changwon Nat'l University)
Jeong, Heon-Gyeong (Samtech)
Publication Information
IE interfaces / v.20, no.3, 2007 , pp. 267-276 More about this Journal
Abstract
When a company makes a decision on an investment for a new product as a source for a new program, it is not easy for them to take a proper decision-making process in this highly volatile market. There could be several ways to make an investment decision on a new program. A company needs to choose the most suitable way of investment which is reflected current corporate circumstances and potential risks. We check up the process of the engineering economic decision in a automotive part manufacturing company. We define the gap between the theory and practice on engineering economic decisions. We present advices to make a decision desirably.
Keywords
Engineering Economic Decision; Net Present Value; Internal Rate of Return; Payback Period; Project Balancea;
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  • Reference
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