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

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  • Lars Zschorn
  • Steve Müller
  • Dmitry Ivanov

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.

Suggested Citation

  • Lars Zschorn & Steve Müller & Dmitry Ivanov, 2017. "Capacity planning on key work stations in a hybrid MTO-ETO production system: a case-study on Siemens AG," International Journal of Inventory Research, Inderscience Enterprises Ltd, vol. 4(2/3), pages 214-232.
    • Handle: RePEc:ids:ijires:v:4:y:2017:i:2/3:p:214-232
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    Cited by:

    1. Giuseppe Fragapane & Dmitry Ivanov & Mirco Peron & Fabio Sgarbossa & Jan Ola Strandhagen, 2022. "Increasing flexibility and productivity in Industry 4.0 production networks with autonomous mobile robots and smart intralogistics," Annals of Operations Research, Springer, vol. 308(1), pages 125-143, January.

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