Conference Session

Advances in Engineering Economy Pedagogy

Collection

2009 Annual Conference & Exposition

Authors

Jane Fraser, Colorado State University, Pueblo; Ray Tsai, Taiwan

Tagged Divisions

Engineering Economy

: choice among three carsBecause Car 1 has the lowest miles, lowest price, and newest year, it is better than the other twocars on every criterion and the decision is easy. Car 1 dominates the other Cars. We call adecision problem containing a dominated alternative “not interesting.” We call a decisionproblem containing no dominated alternative “interesting.”Assuming no ties in preferences among alternatives, we can represent a decision problem with 3alternatives and 3 criteria in a 3 x 3 matrix; an example is shown in Figure 2, where B indicatesthe best value on that criterion, W the worst value, and M the middle value. Each column musthave one B, one M, and one W. Criterion

Conference Session

Advances in Engineering Economy Pedagogy

Collection

2009 Annual Conference & Exposition

Authors

John Ristroph, University of Louisiana, Lafayette

Tagged Divisions

Engineering Economy

equivalent to be placed at the time of the last series flow, and b. the last parameter to equal the number of series flows, the time of the last flow minus one period before the first flow. 3. Note that F|P has a last parameter equal to the number of periods, the time of the com- pound amount minus the time of the prior amount. 4. Present why F|A needs: a. the prior amount placed before the first series flow, and b. the last parameter to equal the number of series flows, the time of the last flow minus one period before the first flow. Unknown deposits are shown in Figure 2. The typical three-step solution uses factors differ-ent from the unknown withdrawals problem, even though the

Conference Session

Advances in Engineering Economy Pedagogy

Collection

2009 Annual Conference & Exposition

Authors

Abhijit Gosavi, Missouri University of Science and Technology

Tagged Divisions

Engineering Economy

, (b) using a combination of DAVN and EMSR todetermine the seat-allocation for a small network with 5 legs, and (c) usingpriceline.com or some other travel website to obtain trends on how airlineprices are changed over time by the airlines especially in the last few daysbefore takeoff. Most of the projects had a significant programming Page 14.1149.6component since practicing revenue managers are expected to be verycomfortable with computer programming.4. OutcomesTeaching the course resulted in numerous outcomes that will be describedhere. Unfortunately, no student evaluations were available because theinstructor (author) had already resigned from the department

Conference Session

Frontiers in Engineering Economy

Collection

2009 Annual Conference & Exposition

Authors

Philip Brach, University of the District of Columbia; Ahmet Zeytinci, University of the District of Columbia; Pradeep Behera, University of the District of Columbia

Tagged Divisions

Engineering Economy

fee will be Page 14.551.6considered as interest.Capital Recovery SchemesIn Figure 1, Diagrams A, B, & C illustrate three ways of recovering the value of a loan (capitalrecovery). Diagram A is the method proffered by this paper. The principle would be paid backin equal installments. There would be no interest in the traditional sense; there would be a fee ofeither 1% or 0.5% annually of the total value of the loan paid monthly with the principle.Diagram B represents the payment of a constant amount of the loan paid back with interest eachmonth on the unpaid balance of the loan. Diagram C represents the traditional equal monthlypayments

Conference Session

Frontiers in Engineering Economy

Collection

2009 Annual Conference & Exposition

Authors

Robert Lundquist, Ohio State University

Tagged Divisions

Engineering Economy

recovery period in B-2 can B-1 be used.These tables provide three different recovery periods labeled class life, GDS (MACRS)and ADS. Class life is the number of years used to establish the GDS and ADS for eachkind of property. GDS is the MACRS property class and is the most widely usedrecovery period. ADS refers to the Alternate Depreciation System which is a straight linedepreciation method which can be elected in many cases but would rarely beadvantageous. The ADS recovery period is always greater than the GDS recoveryperiod.Each of the five books provides a table based on Publication 946 with examples drawnfrom tables B-1 and B-2. Each, as would be expected, uses different examples. Two failto make it clear that the brief table is only a

Conference Session

Frontiers in Engineering Economy

Collection

2009 Annual Conference & Exposition

Authors

Neal Lewis, University of Bridgeport; Ted Eschenbach, TGE Consulting; Joseph Hartman, University of Florida

Tagged Divisions

Engineering Economy

Anchorage. His masters in operations research and his doctorate in industrial engineering are from Stanford University. He is the principal of TGE Consulting, an emeritus professor of engineering management at UAA, and the founding editor emeritus of the Engineering Management Journal. He is the author or co-author of engineering economy texts currently published by Oxford University Press.Joseph Hartman, University of Florida Dr. Joseph C. Hartman, P.E. received his Ph.D. in 1996 and M.S. in 1994 in industrial engineering from the Georgia Institute of Technology and his B.S. in general engineering from the University of Illinois at Urbana-Champaign in 1992. He is a professor in the Department of