Industrial cost modelling and multi-objective optimisation for decision support in production systems development

Recent developments in cost modelling, simulation-based multi-objective optimisation, and post-optimality analysis have enabled the integration of costing data and cost estimation into a new methodology for supporting economically sound decision-making in manufacturing enterprises. Within this methodology, the combination of production engineering and financial data with multi-objective optimisation and post-optimality analysis has been proven to provide the essential information to facilitate knowledge-driven decision-making in real-world production systems development. The focus of this paper is to present the incremental cost modelling technique specifically designed for the integration with discrete-event simulation models and multi-objective optimisation within this methodology. A complete example, using the simulation model and data modified from a previous real-world case study, is provided in this paper to illustrate how the methodology and cost modelling are applied for the optimal investment decision support. (C) 2013 Elsevier Ltd. All rights reserved.