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

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.Peer ReviewedPostprint (author's final draft

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

In this paper we propose a model of a single-site manufacturing system adressed to deal with the capacity planning from an strategic perspective. The model takes in account relevant business aspects, some of them not found in literature and others only partially considered. The model is formulated as a mixed-integer linear program with an objective function that maximize the after-tax cash balance at the end of the planning horizon. The model could be applied to several sectors especially in manufacturing industry. We present a computational experiment with 1792 business scenarios that test the computing time.Preprin

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

In this paper we propose a model of a single-site manufacturing system adressed to deal with the capacity planning from an strategic perspective. The model takes in account relevant business aspects, some of them not found in literature and others only partially considered. The model is formulated as a mixed-integer linear program with an objective function that maximize the after-tax cash balance at the end of the planning horizon. The model could be applied to several sectors especially in manufacturing industry. We present a computational experiment with 1792 business scenarios that test the computing time

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

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.Peer Reviewe

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

In this paper we propose a model of a single-site manufacturing system adressed to deal with the capacity planning from an strategic perspective. The model takes in account relevant business aspects, some of them not found in literature and others only partially considered. The model is formulated as a mixed-integer linear program with an objective function that maximize the after-tax cash balance at the end of the planning horizon. The model could be applied to several sectors especially in manufacturing industry. We present a computational experiment with 1792 business scenarios that test the computing time

Planificació de capacitats de fabricació i distribució en un sistema amb distribució a vàries àrees comercials

En aquest treball es proposa un model amb fabricació single-site, dirigit a fer front a la planificació de les capacitats de producció, de magatzematge i de transports de producte d‟una empresa, en un sistema compost per una fàbrica, possibilitat de centres de distribució intermedis i distribució a diferents àrees comercials, tot contemplat des d‟una perspectiva estratègica. El model està formulat mitjançant la programació lineal entera i mixta, amb una funció objectiu que maximitza el saldo de caixa al final de l‟horitzó de planificació. Per tal d‟implementar el model s‟ha utilitzat el paquet ILOG-CPLEX on s‟han realitzat varis experiments amb la finalitat de validar-lo. És un model pensat en l‟estudi de les capacitats de producció, magatzematge i de transport de producte, contemplades des d‟un punt de vista econòmic-administratiu, on els principals actors són la fàbrica, els magatzems i les àrees comercials, tots ells units per una xarxa de transports que els comunica entre si. En el model s‟ha tingut en compte els aspectes de negocis més rellevants, per tal de calcular el saldo de caixa. També s‟ha intentat reproduir els processos de producció i logístics que es donen a l‟actualitat amb la finalitat d‟assimilar al màxim el model amb la realitat. Aquest model esta dissenyat per ser aplicat en diferents sectors, especialment a la indústria manufacturera, ja que es tracta d‟un model útil per a qualsevol tipus de producte. Al també contemplar la distribució de producte a diferents àrees comercials també podria ser útil per a empreses dedicades al transport de mercaderies