Mid-Term Model-Plant Allocation for Flexible Production Networks in the Automotive Industry

Abstract

In order to match capacity with volatile demand, original equipment manufacturers in the automotive industry increase plant flexibility. This allows for car models to be re-allocated between plants over time, to optimally use available capacity. The planning problem moves from the strategic to the tactical level. Decision support in the form of mathematical planning models accounting for the increased flexibility and characteristics of the mid-term planning situation is required. Two different modeling approaches are considered in this work and compared for their applicability to the planning situation: An approach based on a single time index model formulation and an approach based on a double time index formulation. They differ in their computational time and ability to integrate lost customer rates.