product, or the reconfigurable system can be reconfigured for an additional
cost of $10 million, and produce the new model for 4 years.
9.4 Repeat Problem 9.3 when the interest on capital investment is 10% per year.
Do you recommend investing in the project?
REFERENCES
1. Y. Koren and A. G. Ulsoy. Reconfigurable Manufacturing Systems. Engineering Research
Center for Reconfigurable Machining Systems (ERC/RMS) Report #1, The University of
Michigan, Ann Arbor, 1997.
2. O. Garro and P. Martin. Towards new architecture of machine tools. International Journal of
Production Research, 1993, Vol. 31, No. 10, pp. 2403–2414.
3. Y. Koren and A. G. Ulsoy. Reconfigurable manufacturing system having a production
capacity, method for designing same, and method for changing its production capacity.
U.S. patent No. 6,349,237. Issued on February 19, 2002.
4. Y. Koren and S. Kota. Reconfigurable Machine Tools. U.S. Patent No. 5,943,750. Issue on
August 31, 1999.
5. Y. Koren, F. Jovane, and G. Pritschow (eds). Open Architecture Control Systems, Summary
of Global Activity, ITIA Series, Vol. 2, 1998.
6. Similar ideas for computing systems are presented in J. Villasenor and W.H. Mangione-
Smith. Configurable computing. Scientific American, pp. 66–71, June 1997.
7. G. Erixon. Modularity—the basis for Product and Factory Re-engineering, Annals of the
CIRP, 1996, Vol. 45/1, pp. 1–4.
8. H. K. T
€
onshoff, E. Menzel, H. Hinkenhuis, and E. Nitidem. Intelligence in machine tools
by configuration. 7th International Conference on Production/Precision Engineering,
Chiba, Japan, 1994.
9. S. J. Hu. Stream of variations theory for automotive body assembly, Annals of the CIRP,
1997, Vol. 46/1, pp. 1–4.
10. J. Shi. Stream of Variation Modeling and Analysis for Multistage Manufacturing
Processes. CRC Press, 2006.
11. Y. Koren and R. Hill. Integrated reconfigurable manufacturing system. US patent
#6,920,973. Issue on July 26, 2005.
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