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Strategic ramp-up planning in automotive production networks

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  • Annika Becker
  • Raik Stolletz
  • Thomas Stäblein

Abstract

In many industries, the frequency of production ramp-ups has increased due to shorter product life cycles and increased product variety. Production often takes place at globally dispersed facilities for customers in multiple markets, for example, in the automotive industry. Therefore, ramp-up planning must be carried out for a network. The planning problem at hand is to simultaneously optimise the allocation of products of a common product platform to plants, the timing of ramp-ups and ramp-downs, ramp-up duration and shape of capacity and production and transportation volumes with respect to the net present value of the profit. We develop a hierarchical planning framework and place strategic ramp-up planning therein. We provide a mixed integer programming model for this planning problem. Following the example of a German car manufacturer in the premium segment, we conduct a numerical analysis to obtain insights into optimal ramp-up and ramp-down decisions. The results show that it could be beneficial to use both steep and flat ramp-up curves. The impact of flexibility in the choice of ramp-up slots and the number of ramp-up curves provided on the objective value is substantial. The strategic ramp-up planning model outperforms sequential planning approaches.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:tprsxx:v:55:y:2017:i:1:p:59-78
    DOI: 10.1080/00207543.2016.1193252
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    2. Bersch, Christopher V. & Akkerman, Renzo & Kolisch, Rainer, 2021. "Strategic planning of new product introductions: Integrated planning of products and modules in the automotive industry," Omega, Elsevier, vol. 105(C).

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