Enabling adaptability and resilience of a global production network: A model to evaluate capital and operational expenses of reconfigurable production systems

Abstract

The objective of this paper is to construct and apply a model to evaluate the expected performance impact with respect to capital and operational expenses of reconfigurable designs of production systems within a global production network. The case results suggest that reconfigurable production systems improve the operational and economic performance, especially the capital and transportation expenses, by facilitating increased adaptability and resilience of the global production network. A major conclusion is the importance of considering the drivers and potentials on the network level in quantitative empirical models for the economic evaluation of reconfigurable production systems in industrial cases.