Abstract
A new systematic method is proposed to invest manufacturing equipments in order to cope with fluctuations in demand, in this research. Conventional researches have been carried out to propose the methods for the equipment investment considering the fluctuations in demand. However, the risks of the equipment investment are not discussed in the conventional researches. Returns and risks are defined based on averages and variances in economic science. The returns and the risks for the equipment investment are defined based on the averages and the variances of loads of manufacturing equipments under assumptions that candidate production plans and their probabilities are set to cope with the fluctuations in demand, in this research.
