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

Authors: Lars Zschorn; Steve Müller; Dmitry Ivanov

Addresses: Siemens Industriegetriebe GmbH, Thierbacher Str. 24 09322 Penig, Germany ' Siemens AG, Digital Factory/Motion Control Clemens-Winkler-Strasse 3 09116 Chemnitz, Germany ' Berlin School of Economics and Law, Department of Economics and Business Administration, Chair of Supply Chain Management, 10825 Berlin, Germany

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.

Keywords: production capacity; inventory; flexibility; adaptability; workforce; mixed-integer linear programming.

DOI: 10.1504/IJIR.2017.088743

International Journal of Inventory Research, 2017 Vol.4 No.2/3, pp.214 - 232

Received: 09 Mar 2017
Accepted: 12 Mar 2017
Published online: 17 Dec 2017 *

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