Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management

Benedito, Ernest; Corominas, Albert; Martínez, Claudia; Mas‐Machuca, Marta

doi:10.1057/jors.2015.110

Cited by 6 publications

(3 citation statements)

References 27 publications

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“…The model is formulated as a two-stage stochastic MILP and solved using a commercial solver. Benedito et al [52] formulate a single-site and multi-item strategic capacity under deterministic demand. They consider expansion through investment and machine replacement, demand is satisfied through production and inventory, and the selling of machines associated with the salvage value of the equipment.…”

Section: Literature Reviewmentioning

confidence: 99%

On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning

et al. 2023

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This paper studies carbon tax effectiveness in inducing a transition to cleaner production when a firm faces different technologies and demands over a planning horizon. To determine carbon tax effectiveness, we propose a model based on strategic capacity production planning under carbon taxes that considers proper performance measures. The model, which is formulated as a mixed integer linear problem (MILP), considers issues that previous works have not studied jointly, and that are relevant in a technological transition, such as machine replacement, workforce planning, and maintenance. The effectiveness measures consider levels of clean production and periods to reach a technological transition. Our computational experiments, based on a real case, have shown that in the absence of carbon taxes, a firm has no incentive to transition to clean technology. Still, the effectiveness of carbon taxes depends on the characteristics of the technology available for the production process and the magnitude of the demand. We include managerial insights aimed at both companies and the environmental authority.

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Section: Literature Reviewmentioning

confidence: 99%

On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning

et al. 2023

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“…The model is formulated as a two-stage stochastic MILP and solved using a commercial solver. Benedito et al (2016) formulated a single-site and multi-item strategic capacity under deterministic demand. They considered expansion through investment and replacement of machines, demand is satisfied through production and inventory, and the selling of machines associated with the salvage value of the equipment.…”

Section: Literature Reviewmentioning

confidence: 99%

On Carbon Taxes Effectiveness to Induce a Clean Technology Transition: An Evaluation Framework Based on Optimal Strategic Capacity Planning

Wolf¹,

Escalona²,

Angulo³

et al. 2022

Preprint

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This paper studies carbon taxes effectiveness to induce a transition to cleaner production when a firm faces different technologies and demands. To determine carbon taxes effectiveness, we propose a framework based on a strategic capacity planning under carbon taxes model, that consider proper perfomance measures.The model, which is formulated as a mixed integer linear problem (MILP), considers issues that previous work have not studied jointly, such as machine replacement, workforce planning, and maintenance. The effectiveness measures consider levels of clean production and periods to reach a technological transition.Our computational experiments, based on a real case, have shown that carbon taxes by themselves do not necessarily induce a transition to clean production, since their effectiveness depends on the available technology relationship and the demand magnitude.

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“…Benedito et al. (2016) considered a manufacturing system with production capacity renewal, storage capacity, tax, and cash flow management in which there was a minimum bank account balance for the manufacturer. Tunca and Zhu (2017) analyzed the role and efficiency of buyer intermediation in supplier financing through a game‐theoretical model.…”

Section: Literature Reviewmentioning

confidence: 99%

A cash‐constrained dynamic lot‐sizing problem with loss of goodwill and credit‐based loan

Zhen

Zhang

2019

Int Trans Operational Res

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We introduce capital flow constraints, loss of good will and loan to the lot sizing problem. Capital flow constraint is different from traditional capacity constraints: when a manufacturer launches production, its present capital should not be less than its present total production cost; otherwise, it must decrease production quantity or suspend production. Unsatisfied demand in one period may cause customer's demand to shrink in the next period considering loss of goodwill. Fixed loan can be adopted in the starting period for production. A mixed integer model for a deterministic single-item problem is constructed. Based on the analysis about the structure of optimal solutions, we approximate it to a traveling salesman problem, and divide it into sub-linear programming problems without integer variables. A forward recursive algorithm with heuristic adjustments is proposed to solve it. When unit variable production costs are equal and goodwill loss rate is zero, the algorithm can obtain optimal solutions. Under other situations, numerical comparisons with CPLEX 12.6.2 show our algorithm can reach optimal in most cases and has computation time advantage for large-size problems. Numerical tests also demonstrate that initial capital availability as well as loan interest rate can substantially affect the manufacturer's optimal lot sizing decisions.

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Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management

Cited by 6 publications

References 27 publications

On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning

On Carbon Tax Effectiveness in Inducing a Clean Technology Transition: An Evaluation Based on Optimal Strategic Capacity Planning

On Carbon Taxes Effectiveness to Induce a Clean Technology Transition: An Evaluation Framework Based on Optimal Strategic Capacity Planning

A cash‐constrained dynamic lot‐sizing problem with loss of goodwill and credit‐based loan

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