Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty
The aircraft industry is one of the most adventurous areas in investment due to its need for huge investments faced by various risks and uncertainties. The traditional project assessment methods in this industry suffer from a systematic approach in considering the risk and uncertainty and often igno...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Isfahan
2015-01-01
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| Series: | مدیریت تولید و عملیات |
| Subjects: | |
| Online Access: | http://uijs.ui.ac.ir/jpom/browse.php?a_code=A-10-413-1&slc_lang=en&sid=1 |
| _version_ | 1827886007913021440 |
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| author | Isa Nakhai Kamalabadi Esmaeel Saberi Mahdi Mohammadzadeh Mohsen Sadegh Amalnik |
| author_facet | Isa Nakhai Kamalabadi Esmaeel Saberi Mahdi Mohammadzadeh Mohsen Sadegh Amalnik |
| author_sort | Isa Nakhai Kamalabadi |
| collection | DOAJ |
| description | The aircraft industry is one of the most adventurous areas in investment due
to its need for huge investments faced by various risks and uncertainties. The
traditional project assessment methods in this industry suffer from a
systematic approach in considering the risk and uncertainty and often ignoring
the value of various options in project life. In this paper, we develop a seven
step model based on Real Option Theory to evaluate project from both
perspectives of risk and cost by using an extended binomial tree. At last,
Monte Carlo simulations are done by considering the uncertainties as a distinct
factor from the risks which in previous researches used to be examined jointly.
While the traditional approaches don’t justify the project, our results of the
proposed model approve doing the project by revealing its real values. |
| first_indexed | 2024-03-12T19:56:26Z |
| format | Article |
| id | doaj.art-e7aee949aed345ee9e3efc2ea53480d9 |
| institution | Directory Open Access Journal |
| issn | 2251-6409 2423-6950 |
| language | fas |
| last_indexed | 2024-03-12T19:56:26Z |
| publishDate | 2015-01-01 |
| publisher | University of Isfahan |
| record_format | Article |
| series | مدیریت تولید و عملیات |
| spelling | doaj.art-e7aee949aed345ee9e3efc2ea53480d92023-08-02T02:49:10ZfasUniversity of Isfahanمدیریت تولید و عملیات2251-64092423-69502015-01-0152201Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, UncertaintyIsa Nakhai Kamalabadi0Esmaeel Saberi1Mahdi Mohammadzadeh2Mohsen Sadegh Amalnik3 Tarbiat Modares University Tarbiat Modares University Tarbiat Modares University Tehran University The aircraft industry is one of the most adventurous areas in investment due to its need for huge investments faced by various risks and uncertainties. The traditional project assessment methods in this industry suffer from a systematic approach in considering the risk and uncertainty and often ignoring the value of various options in project life. In this paper, we develop a seven step model based on Real Option Theory to evaluate project from both perspectives of risk and cost by using an extended binomial tree. At last, Monte Carlo simulations are done by considering the uncertainties as a distinct factor from the risks which in previous researches used to be examined jointly. While the traditional approaches don’t justify the project, our results of the proposed model approve doing the project by revealing its real values.http://uijs.ui.ac.ir/jpom/browse.php?a_code=A-10-413-1&slc_lang=en&sid=1Real Option Theory Decision Tree Manufacturing Process Evaluationsmall aircraft Uncertainty |
| spellingShingle | Isa Nakhai Kamalabadi Esmaeel Saberi Mahdi Mohammadzadeh Mohsen Sadegh Amalnik Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty مدیریت تولید و عملیات Real Option Theory Decision Tree Manufacturing Process Evaluation small aircraft Uncertainty |
| title | Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty |
| title_full | Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty |
| title_fullStr | Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty |
| title_full_unstemmed | Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty |
| title_short | Real Option Theory, Decision Tree, Manufacturing Process Evaluation, small aircraft, Uncertainty |
| title_sort | real option theory decision tree manufacturing process evaluation small aircraft uncertainty |
| topic | Real Option Theory Decision Tree Manufacturing Process Evaluation small aircraft Uncertainty |
| url | http://uijs.ui.ac.ir/jpom/browse.php?a_code=A-10-413-1&slc_lang=en&sid=1 |
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