Design and simulation of a capacity management model using a digital twin approach based on the viable system model: Case study of an automotive plant

Abstract

Matching supply capacity and customer demand is challenging for companies. Practitioners often fail due to a lack of information or delays in the decision-making process. Moreover, researchers fail to holistically consider demand patterns and their dynamics over time. Thus, the aim of this study is to propose a holistic approach for manufacturing organizations to change or manage their capacity. The viable system model was applied in this study. The focus of the research is the clustering of manufacturing and assembly companies. The goal of the developed capacity management model is to be able to react to all potential demand scenarios by making decisions regarding labor and correct investments and in the right moment based on the needed information. To ensure this, demand data series are analyzed enabling autonomous decision-making. In conclusion, the proposed approach enables companies to have internal mechanisms to increase their adaptability and reactivity to customer demands. In order to prove the conceptual model, a simulation of an automotive plant case study was performed, comparing it to classical approaches.