Abstract
Production systems must be always managed by keeping them adjusted to their external environment. Then, in order to adjust themselves to customer's demand change as a main external environmental change, it's required to change production systems. Decision making concerned with alteration of production systems is a difficult and important task for production managers. In this paper, we construct a production system model using production cost as a criterion. Operating this model and considering customer's demand change in volume and price, we offer a supporting tool for investigating system alteration policies relative to equipment cost, labour cost and development cost.
