Capacity planning on key work stations in a hybrid MTO-ETO production system: a case-study on Siemens AG

Lars Zschorn, Steve Müller and Dmitry Ivanov

International Journal of Inventory Research, 2017, vol. 4, issue 2/3, 214-232

Abstract: The focus of this study is on tactical-level capacity management which refers to the determination of in-house workforce production capacity in an optimal cost-efficient manner in a multi-period mode. Two options for capacity planning are investigated for rapid prototyping with the help of a mixed-integer linear optimisation model: smoothing the capacity utilisation over time vs. a higher level of capacity availability. A sensitivity analysis based on real empirical data in Siemens AG is used for the revealing the impact of workforce and capacity flexibility on operational performance. The results suggest that the number of workers decreases if production orders have not to be completed within only one week. On the contrary, if the binary restriction on the order fulfilment within one week is released, the production orders can be split into different weeks and this results in a higher smoothing rate and thus in a higher capacity utilisation degree.

Keywords: production capacity; inventory; flexibility; adaptability; workforce; mixed-integer linear programming. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=88743 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijires:v:4:y:2017:i:2/3:p:214-232

Access Statistics for this article

More articles in International Journal of Inventory Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().