Approach for integrated product variant allocation and configuration adaption of global production networks featuring post-optimality analysis

Jan Hochdörffer, Felix Klenk, Thomas Fusen, Benjamin Häfner and Gisela Lanza

International Journal of Production Research, 2022, vol. 60, issue 7, 2168-2192

Abstract: Given today’s demand shift for product variants triggered by different market segments, manufacturing companies are facing high degrees of complexity, when utilising their global production networks. To remain competitive, companies need to prepare proactively for increasing demand dynamics by using the adaptability of their production network and planning their product allocation to production network entities comprehensively. In this paper, a mixed-integer linear programme (MILP) is proposed for the integrated product variant allocation and configuration adaption of global production networks. Further improvement potential for the optimal solution is identified and evaluated by means of post-optimality analysis, i.e. an analysis of shadow prices and slack variables is conducted. This approach contributes towards decision-making in the context of strategic production network design. Its application may reduce the risk of disadvantages decisions and supports the identification of further improvement measures in complex decision-making problems while improving decision transparency. The approach is applied at a global production network for final assembly in the aeronautics industry.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2021.1884765 (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:taf:tprsxx:v:60:y:2022:i:7:p:2168-2192

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2021.1884765

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().