Abstract:
The objective of thisresearchwas to study the feasibility in engineering economics for investment in handleassist parts production. The company has chosen to buythese parts from a supplier in the Republic of Indiathatcosts 148.56 Baht per piece and worth 72,868,129 Baht in total. The companyaimed to reduce the import costs for such parts sothatthisresearchstudied one project in comparisonwithanotherproject. The first projectwas to invest in these parts production by itsowncompany and the second projectwas to hire manufacturer A or B to producethese parts within 5 years. The resultsshowedthat the first project has a total cost as of Present Worth (PW) 40,250,451 Baht. The second project by hiringmanufacturers A and B has the total cost as of PW 62,299,534Baht and 49,987,350 Baht respectively. In conclusion, the first project was chosen according to its lowest cost compared with the import costs from the Republic of India. Moreover, the sensitivity analysis was also studied in 6 factors that were production volume; fixed costs; raw material costs; electricity costs; labor costs; and transportation costs. The results showed that production volume was the most economically sensitive when increasing and decreasing by 50% in changes.