Decisions on optimal adoption time for new technology

Yeu Shiang Huang, Tsun Lin Hsueh, Guang Hong Zheng

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

The rapid development of science and technology has brought a lot of convenience to the industry, and allowed companies to enhance their competitive advantages in the market. However, at some point in the growth stage, companies often reach a bottle neck of efficiency and effectiveness in production due to a saturated scale of economy, leading managers to face a decision of adopting more advanced technologies with consideration of market requirements and related costs. In this study, the adoption of a new technology is modeled as a decision problem in which related uncertain factors are considered to determine the optimal adoption time for the new technology. Bayesian decision analysis is used to integrate the subjective judgment of the decision maker and the objective information of the market. A practical case from a food and beverage company is illustrated to demonstrate the effectiveness of the proposed approach.

Original languageEnglish
Pages (from-to)388-394
Number of pages7
JournalComputers and Industrial Engineering
Volume65
Issue number3
DOIs
Publication statusPublished - 2013 May 7

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Engineering(all)

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