TITLE:
Manufacturing and Production Economics Numerical Model Old Non-FMS versus Modern FMS Plants
AUTHORS:
Gerald Aranoff
KEYWORDS:
Flexible Manufacturing System
JOURNAL NAME:
Modern Economy,
Vol.10 No.12,
December
27,
2019
ABSTRACT: Flexible
Manufacturing System (FMS) is a modern innovation in manufacturing technology
that allows a factory to switch at no cost between manufacturing different
products. This paper presents a simple numerical model of manufacturing and
production economics with illustrated demand and cost curves. The model shows
industry long-run equilibrium (E(Π)=0) for manufacturing and
production to supply hypothetical demand schedules for two products: 1 and 2.
The model has two plant types: old non-FMS Plant2L that can produce only product 2 and modern FMS PlantK that can switch easily
between manufacturing products 1 and 2. The model assumes linear total cost
curves with absolute capacity limits for the two plant types.