An optimisation approach for capacity planning: modelling insights and empirical findings from a tactical perspective

Abstract

The academic literature presents a research-practice gap on the application of decision support tools to address tactical planning problems in real-world organisations. This paper addresses this gap and extends a previous action research relative to an optimisation model applied for tactical capacity planning in an engineer-to-order industrial setting. The issues discussed herein raise new insights to better understand the practical results that can be achieved through the proposed model. The topics presented include the modelling of objectives, the representation of the production process and the costing approach, as well as findings regarding managerial decisions and the scope of action considered. These insights may inspire ideas to academics and practitioners when developing tools for capacity planning problems in similar contexts.

Engineering and production decoupling configurations: An empirical study in the machinery industry

“…Further engineer-to-order studies have emphasised production planning and control techniques, such as project planning and capacity planning (Adrodegari et al, 2015;Carvalho et al, 2017Carvalho et al, , 2015Rossi et al, 2017), as well as design management and bottleneck management extension to product design and engineering processes (Hinckeldeyn et al, 2014;Wesz et al, 2018). The application of lean practices such as customer involvement and partnership, standardisation, lean purchasing, etc., has been demonstrated to be meaningful if the challenges provided by the engineer-to-order context are taken into account (Birkie and Trucco, 2016;Cannas et al, 2018a).…”

A decade of engineering-to-order (2010–2020): Progress and emerging themes

“…Planning and control techniques 24 (Adrodegari et al, 2015;Ahmadian et al, 2016;Alfieri et al, 2011;Bortolini et al, 2019;Carvalho et al, 2017Carvalho et al, , 2016Carvalho et al, , 2015Dal Borgo and Meneghetti, 2019;Ghiyasinasab et al, 2020;Grabenstetter and Usher, 2014Jiang and Xi, 2019;Kim et al, 2020;Medini, 2015;Mourtzis et al, 2016;Nam et al, 2018;Pacagnella et al, 2019;Poeschl et al, 2019;Riezebos, 2010;Sjøbakk et al, 2015;Telles et al, 2019;Wesz et al, 2018;Yang, 2013) 7 (Bataglin et al, 2020;Cannas et al, 2018;Dallasega et al, 2018;Gejo García et al, 2020;Mahmood et al, 2018;Villar-Fidalgo et al, 2019) 31 Uncertainty/risk management 2012; Reid et al, 2019;Shen et al, 2011;Shurrab et al, 2020aShurrab et al, , 2020bSylla et al, 2020) Industry 4.0 10 ( Dallasega, 2018;Fox and Do, 2013;Kozjek et al, 2020;Oettmeier and Hofmann, 2016;…”

“…Some studies analysed tactical 'capacity planning' (Carvalho et al, 2017(Carvalho et al, , 2016(Carvalho et al, , 2015,…”

Automated System for forecasting and capacity management in BPO

“…Erlang C was formulated by Danish mathematician Agner Erlang in 1917. The Erlang C formula is used to calculate the headcount required, to process given volume to achieve SLA targets [14]. This gave real-time staffing data.…”