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Due to the shorting of product life cycle, increase of variety
of customer demand, and fast development of new product, the
manufacturer has to adopt advanced manufacturing system ( AMS)
to maintain his competitiveness. However, the question of 1)
will that vast investment be justified, or 2) will the
corporation be more competitive are needed to be evaluated.
Hence, a rational and systematic evaluation process plays an
importment role in the success of the adoption of AMS. In this
research, a two-phased multiple-objective model is propsed for
the justification of the AMS. At the phase I, the focus is on
the business strategy to determine whether to adopt the AMS
decision. At the phase II, the focus is on the operational and
economic aspects of alternatives. Both tangible and intangible
factors are include in the model. The Analytic Hierarchy
Process (AHP) is used for evaluating the alternatives at each
phase. The operational and economic factors are collected from
literatue/questionaire surveys and simulation run are modeled
to evaluate the cost and operation performances for each
alternative. Finally, an example of this model is demonstrated
to determine the best unit load AS/RS.
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