Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management

This paper deals with strategic capacity planning of a single-site manufacturing system. We propose a MILP model that includes relevant business aspects and possibilities, some of which are only partially or not at all found in the literature. Specifically, we consider decisions on expansion, reduct...

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Detalles Bibliográficos
Autores: Benedito Benet, Ernest|||0000-0001-8080-4356, Corominas Subias, Albert|||0000-0002-4795-7761, Martínez Costa, Carme|||0000-0002-4175-8577, Mas Machuca, Marta
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2117/89596
Acceso en línea:https://hdl.handle.net/2117/89596
https://dx.doi.org/10.1057/jors.2015.110
Access Level:acceso abierto
Palabra clave:Strategic capacity planning manufacturing mathematical programming models
Indústries -- Planificació
Organització del treball
Programació (Matemàtica)
Àrees temàtiques de la UPC::Economia i organització d'empreses
Descripción
Sumario:This paper deals with strategic capacity planning of a single-site manufacturing system. We propose a MILP model that includes relevant business aspects and possibilities, some of which are only partially or not at all found in the literature. Specifically, we consider decisions on expansion, reduction and renewal of production capacity, and acquisition of storage capacity. In addition, we model aspects such as (a) maintenance costs and unit variable costs depending, respectively, on age and characteristics of facilities, (b) seasonality of the demand and (c) cash flow management, including taxes and, therefore, depreciation of assets. The model maximises the after-tax cash balance at the end of the planning horizon. We also present a computational experiment with 54 instances to show that the model can be solved for a wide range of sizes in a reasonable computing time using comercial software.