Real Options in Engineering Design, Operations, and Management

ISBN-10: 142007170X
ISBN-13: 9781420071702
Category: Technology & Engineering
Pages: 253
Language: English
Published: 2009-10-27
Publisher: CRC Press
Authors: Harriet Black Nembhard, Mehmet Aktan

Description

Given that engineering flexibility can potentially provide a competitive advantage, the question then becomes: Precisely how valuable is this flexibility? However, traditional methods often fail to accurately capture the economic value of investments in an environment of widespread uncertainty and rapid change. The real options method represents the new state-of-the-art technique for valuation and management of strategic investments, enabling corporate decision-makers to leverage uncertainty and limit downside risk. Real Options in Engineering Design, Operations, and Management presents and synthesizes the body of knowledge in the area of real options for engineering systems. Providing case studies and step-by-step computations of real options valuation, it covers engineering applications across different disciplines such as industrial and civil engineering, and computer science. The authors review financial-option research results, consider how to quantify engineering activities, and analyze optimal business strategies based on a variety of real option models. They integrate academic work on real options in engineering, current practice, and discussion of future needs and opportunities. Flexibility in decision making allows firms to compete more effectively in a world of substantial price and demand uncertainty, product variety, short product life cycles, and rapid product development. And with more frequent demands being placed on engineering systems to change, managers and manufacturing systems must react to events as they unfold. This book explores a real options modeling framework for engineering transitions that allows decision makers to capture and investigate several alternatives for improving an engineering system.

Get the book

Similar books

Animal Sciences: The Biology, Care, and Production of Domestic Animals, Fourth Edition
By John R. Campbell, M. Douglas Kenealy, Karen L. Campbell
Timberlake claimed in 1980 that a fundamental problem with Singer's work is the lack of an adequate definition of suffering ...
Resilient Agriculture: Cultivating Food Systems for a Changing Climate
By Laura Lengnick
3. D. Layne. 2013. Tree Fruit: Protecting Your Investment. American/Western Fruit Grower, September/October. 4. R. Snyder and J. Melu-Abreu. 2005. Frost ...
Biodesign: The Process of Innovating Medical Technologies
By Stefanos Zenios, Josh Makower, Paul Yock
At that time, these were in the low $10s of millions. ... be a good partner going forward, even though it takes longer to get the deal done," offered Chess.
Advanced Signal Processing: A Concise Guide
By Amir-Homayoon Najmi, Todd Moon
[ 59 ] S. Kotz , T. J. Kozubowski , and K. Podgorski , The Laplace ... valued signal processing : The proper way to deal with impropriety , ” IEEE Trans .
Resources for Technical Communication
By Pearson Education, Pearson Education Staff, David P Pearson Education
Some documents are annotated; some are left without annotations to provide more flexibility for instructors. This booklet can be packaged at no additional cost with any Longman title in technical communication.
Chemistry: An Introduction to General, Organic, and Biological Chemistry; Chemistry Study Pack Version 2.0 CD-ROM; The Chemistry of Life CD-ROM;...
By Karen C. Timberlake
Chemistry: An Introduction to General, Organic, and Biological Chemistry; Chemistry Study Pack Version 2.0 CD-ROM; The Chemistry of Life CD-ROM;...
Poultry Science: Fifth Edition
By Colin G. Scanes, Karen D. Christensen
The emission rates for ammonia (Casey et al., 2006): • Layers: 116 g NH3 per AU (AU or animal unit or 500 kg). • Broilers: 135 g NH3 per AU (AU or animal unit or 500 kg). Emission rates in different reports vary from less than either 10 ...
Solid State Materials Chemistry
By Patrick M. Woodward, Pavel Karen, John S. O. Evans
[45] B.F. Hoskins, R. Robson, “Design and construction of a new class of scaffolding-like materials comprising infinite polymeric frameworks of 3D-linked molecular rods. A reappraisal of the zinc cyanide and cadmium cyanide structures ...
Abbreviations Dictionary
By Dean A. Stahl, Karen Landen
... Tallest Mountain Mount Robson—12,972 feet or 3,954 meters—in the Canadian Rockies Canada's Westernmost City Dawson, Yukon Canada's Westernmost Point in Yukon Territory just east of Alaska's Demarcation Point Canary Islands' Largest ...
Agriculture: A Very Short Introduction
By Paul Brassley, Richard Soffe
ACCOUNTING Christopher Nobes ADVERTISING Winston Fletcher AFRICAN AMERICAN RELIGION Eddie S. Glaude Jr AFRICAN HISTORY ... Hugh Bowden ALGEBRA Peter M. Higgins AMERICAN HISTORY Paul S. Boyer AMERICAN IMMIGRATION David A. Gerber AMERICAN ...