Abstract
Recently many manufacturers have emphasized the enhancement of customer service through increased manufacturing flexibility. Sophisticated models exist for the justification of modern automation technologies which could have an impact on manufacturing flexibility, but practitioners are more likely to utilize a simple tool such as cost-volume breakeven analysis. Indeed, much of the difficulty that managers have in justifying modern automation technologies may be due to the shortsightedness of cost-volume breakeven analysis. In this paper, we introduce an equally simple justification tool, cost-volume-flexibility breakeven analysis, and explain its use and the benefits accompanying its use.
Original language | American English |
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Journal | Mid-American Journal of Business |
Volume | 7 |
State | Published - 1992 |
Disciplines
- Operations and Supply Chain Management
Keywords
- Breakeven analysis
- Cost-volume
- Extending
- Flexibility
- Include