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Strategic Planning of BMW’s Global Production Network

Author

Listed:
  • Bernhard Fleischmann

    (Department of Production and Logistics, University of Augsburg, Universitätsstraße 16, D-86135 Augsburg, Germany)

  • Sonja Ferber

    (BMW AG, D-80788 München, Germany)

  • Peter Henrich

    (BMW AG, D-80788 München, Germany)

Abstract

We developed a strategic-planning model to optimize BMW’s allocation of various products to global production sites over a 12-year planning horizon. It includes the supply of materials as well as the distribution of finished cars to the global markets. It determines the investments needed in the three production departments, body assembly, paint shop, and final assembly, for every site and the financial impact on cash flows. The model has improved the transparency and flexibility of BMW’s strategic-planning process.

Suggested Citation

  • Bernhard Fleischmann & Sonja Ferber & Peter Henrich, 2006. "Strategic Planning of BMW’s Global Production Network," Interfaces, INFORMS, vol. 36(3), pages 194-208, June.
    • Handle: RePEc:inm:orinte:v:36:y:2006:i:3:p:194-208
    DOI: 10.1287/inte.1050.0187
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    References listed on IDEAS

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    Cited by:

    1. De Giovanni, Domenico & Massabò, Ivar, 2018. "Capacity investment under uncertainty: The effect of volume flexibility," International Journal of Production Economics, Elsevier, vol. 198(C), pages 165-176.
    2. Jesús Lampón & Pablo Cabanelas & Vincent Frigant, 2017. "The new automobile modular platforms: from the product architecture to the manufacturing network approach?," Post-Print hal-03187886, HAL.
    3. Jakubovskis, Aldis, 2017. "Flexible production resources and capacity utilization rates: A robust optimization perspective," International Journal of Production Economics, Elsevier, vol. 189(C), pages 77-85.
    4. Sabet, Ehsan & Yazdani, Baback & Kian, Ramez & Galanakis, Kostas, 2020. "A strategic and global manufacturing capacity management optimisation model: A Scenario-based multi-stage stochastic programming approach," Omega, Elsevier, vol. 93(C).
    5. Annika Becker & Raik Stolletz & Thomas Stäblein, 2017. "Strategic ramp-up planning in automotive production networks," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 59-78, January.
    6. Jesús F. Lampón & Pablo Cabanelas & Javier González Benito, 2015. "The impact of implementation of a modular platform strategy in automobile manufacturing networks," Working Papers. Collection B: Regional and sectoral economics 1502, Universidade de Vigo, GEN - Governance and Economics research Network.
    7. Christian Weckenborg & Karsten Kieckhäfer & Thomas S. Spengler & Patricia Bernstein, 2020. "The Volkswagen Pre-Production Center Applies Operations Research to Optimize Capacity Scheduling," Interfaces, INFORMS, vol. 50(2), pages 119-136, March.
    8. Anandasivam Gopal & Manu Goyal & Serguei Netessine & Matthew Reindorp, 2013. "The Impact of New Product Introduction on Plant Productivity in the North American Automotive Industry," Management Science, INFORMS, vol. 59(10), pages 2217-2236, October.
    9. Moritz Julius Ziegler & Kilian Seifried & Philipp Kuske & Moritz Fleischmann, 2019. "TRUMPF Uses a Mixed Integer Model as Decision Support for Strategic Production Network Design," Interfaces, INFORMS, vol. 49(3), pages 213-226, May.
    10. Sanjay Dominik Jena & Jean-François Cordeau & Bernard Gendron, 2017. "Lagrangian Heuristics for Large-Scale Dynamic Facility Location with Generalized Modular Capacities," INFORMS Journal on Computing, INFORMS, vol. 29(3), pages 388-404, August.
    11. Wang, Mengyue & Huang, Hongxuan, 2019. "The design of a flexible capital-constrained global supply chain by integrating operational and financial strategies," Omega, Elsevier, vol. 88(C), pages 40-62.

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