Authors: Eldon Y. Li, Joseph R. Biggs, Emil A. Thies
Addresses: Department of Management Information Systems, College of Commerce, National Chengchi University, 64, Sec. 2, Zhi-nan Rd., Wenshan, Taipei 11605, Taiwan. ' Orfalea College of Business, California Polytechnic State University, San Luis Obispo, CA 93407, USA. ' College of Business Sciences, Zayed University, P.O. Box 4783, Abu Dhabi, United Arab Emirates
Abstract: This research focuses on the use of constrained capacity availability as a managerial decision variable in production systems. A simulation model was used to evaluate production system performance at various levels of constrained capacity before additional incremental levels of capacity were added. The results indicate that as levels of available capacity approach planned demand levels, or as demand approach capacity levels, the system performance declines. This deterioration of system performance begins at some capacity level higher than average production requirements. That is, at 100% planned capacity utilisation, system performance is considerably degraded, suggesting the need for local managerial manipulation of short-term available capacity levels. In addition, this paper reviews several issues related to constrained capacity and bottleneck management that need clarification.
Keywords: capacity management; capacity constraints; inventory levels; service levels; production management; bottleneck management; simulation; modelling; system performance; process capacity; capacity planning.
International Journal of Internet and Enterprise Management, 2005 Vol.3 No.4, pp.365 - 384
Published online: 21 Jan 2006 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article