A decision analysis view of the effect of robot repeatability on profit.: An article from: IIE Transactions

This digital document is an article from IIE Transactions, published by Institute of Industrial Engineers, Inc. (IIE) on February 1, 1995. The length of the article is 8680 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: The purpose of this paper is to view recent developments in non-von Neumann and Morgenstern utility functions (vNM) via a stationary statistical economic model. Such a model is suggested in the literature for evaluating robot precision, assuming that repeatability follows a Rayleigh distribution. Various vNM and non-vNM utility forms are discussed and illustrated for the robot evaluation and selection problem. The approach suggested here may be applicable for companies operating under profit centers where market systematic risk data are not available and decisions are based on the decision maker's (DM) attitude toward risk. Although the numerical illustrations demonstrate a consistency among the expected profit measure for most utility forms that were investigated, the analysis provides an extended framework for dealing with risky production problems. Furthermore, it illustrates the sensitivity of robot operational decisions such as speed and of both the output rate per time unit and the product quality to the DM's attitude toward risk. It allows the DM to analyze and explain decisions as affected by the selection of the utility form, as well as the technological and economic parameters and measures describing the problem, particularly the technical risk involved in the determination of a robot operational problem.

Citation Details
Title: A decision analysis view of the effect of robot repeatability on profit.
Author: Abraham Mehrez
Publication:IIE Transactions (Refereed)
Date: February 1, 1995
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: v27 Issue: n1 Page: p60(12)

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