Capacity management in order-driven production networks--A flexibility-oriented approach to determine the size of a network capacity pool

Klaus-Henning Ahlert, Hans Corsten and Ralf Gössinger

International Journal of Production Economics, 2009, vol. 118, issue 2, 430-441

Abstract: Assuming heterarchical production networks, capacity management is faced with uncertainties of both network orders and network capacity. In order to deal with these uncertainties we propose a flexible approach that combines capacity-oriented pricing with two modes of providing network capacity: capacity on demand and network capacity pool. Flexibility of this approach arises from additional degrees of freedom for matching capacity supply and demand. The central problem of sizing the network capacity pool is solved iteratively by a decentralised planning process applying the top-down/bottom-up principle. In this paper we present the underlying formal models of the corporate level and the network level as well as the coordination procedure. In order to illustrate the approach, we provide a continued numerical example.

Keywords: Production; network; Capacity; management; Flexibility (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(08)00390-3
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:118:y:2009:i:2:p:430-441

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().