Flexibility in the formation and operational planning of dynamic manufacturing networks

Abstract

The term Dynamic Manufacturing Network (DMN) refers to a new collaborative business model that relies on real-time information sharing, synchronized planning and common business processes. DMNs are operational networks formed among autonomous and globally dispersed partners, and can be seen as the manufacturing industry application of the Virtual Enterprise (VE) concept. Despite their numerous practical benefits such as optimized processes and access to new and global markets, they are particularly vulnerable to disruptions. Any disruption in manufacturing or transportation of products may obviously result in failed orders, thus impacting the whole DMN reliability. Instead of developing stochastic models to deal with uncertainty, as it is usually done, we have rather integrated the concept of flexibility into the tactical and operational planning of such networks. We therefore propose in this work, a multi-objective optimization model that simultaneously maximizes reactive flexibility measures while minimizing total operating costs.