Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management
Publication date
2016-07ISSN
0160-5682
Abstract
This paper deals with strategic capacity planning of a single-site manufacturing system. We propose a MILP model that includes relevant business aspects and possibilities, some of which are only partially or not at all found in the literature. Specifically, we consider decisions on expansion, reduction and renewal of production capacity, and acquisition of storage capacity. In addition, we model aspects such as (a) maintenance costs and unit variable costs depending, respectively, on age and characteristics of facilities, (b) seasonality of the demand and (c) cash flow management, including taxes and, therefore, depreciation of assets. The model maximises the after-tax cash balance at the end of the planning horizon. We also present a computational experiment with 54 instances to show that the model can be solved for a wide range of sizes in a reasonable computing time using comercial software.
Document Type
Article
Document version
Accepted version
Language
English
Subject (CDU)
33 - Economics. Economic science
Keywords
Planificació estratègica
Strategic planning
Fabricació
Manufacturing processes
Models matemàtics
Mathematical models
Planificación estratégica
Procesos de fabricación
Modelos matemáticos
Pages
28
Publisher
Taylor & Francis
Collection
67; 7
Is part of
Journal of the Operational Research Society
Citation
Benedito Benet, Ernest; Corominas Subias, Albert; Martínez-Costa, Carme; Mas-Machuca, Marta. «Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management». Journal of the Operational Research Society, 2016, vol. 67, núm. 7, p.970-981. Disponible en: <https://www.tandfonline.com/doi/full/10.1057/jors.2015.110>. Fecha de acceso: 18 jun. 2019. https://doi.org/10.1057/jors.2015.110
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Rights
http://creativecommons.org/licenses/by-nc-nd/4.0/
Except where otherwise noted, this item's license is described as http://creativecommons.org/licenses/by-nc-nd/4.0/