Multi-Plant Configuration With Component Commonality

We compare the benefits and costs of two alternative manufacturing network configurations inthe presence of component commonality. We evaluate the trade-off between the decreasedlogistics costs and loss of risk-pooling benefits in plant networks which consolidate allcomponent manufacturing within one plant (Product Network) as compared to those that do not(Process Network). We examine conditions when a Product Network may be chosen over aProcess Network and vice- versa. We find that the risk pooling benefit provided by consolidatingcommon subassembly production under one roof is reduced when the cost of acquiring commoncomponent capacity is sufficiently high or low.[...]

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Year of publication:	2003-03-07
Authors:	Kulkarni, Shailesh S. ; Magazine, Michael ; Raturi, Amitabh
Institutions:	College of Business Administration <Cincinnati, Ohio>
Subject:	Supply Chain Management \| Netzwerk \| Konfiguration <Informatik> \| configuration \| Kapazitätsmanagement \| capacity control

1. Introduction
2. Related Literature
3. A Two-stage Model for the Plant Configuration problem
3.1 Objectives and Assumptions
3.2 The Optimization problem for the Process Focused network
3.3 The Optimization problem for the Product Focused Network
4. Numerical Illustration and Sensitivity
4.1 Sensitivity to Common Subassembly Capacity Acquisition Cost
4.2 Sensitivity to Common Subassembly Shipping Cost
5. Sensitivity of Process Network to Cost Parameters
5.1 Sensitivity of Optimal Capacity Acquisition to the Stage 2 costs
5.2 Sensitivity of the Optimal Capacity Acquisitions to Cost of Capacity
5.3 Sensitivity of Joint Service Level to Stage 2 Cost Parameters
6. Conclusions and Future Research
REFERENCES

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005869510