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OR Spectrum (2009) 31:507532
DOI 10.1007/s00291-009-0171-x
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Published online: 26 March 2009 Springer-Verlag 2009
Abstract This article addresses the strategic network planning for international automotive manufacturers, in particular of premium cars. The focus is on the product to plant allocation and capacity expansion decisions for a given network design with xed plant locations. A mixed integer program minimizing the net present value (NPV) of all capital expenditures and operational cost while incorporating exibility of a network by a specic allocation structure (chain) is formulated. Computational illustrations on the inuence of exible allocation structures on the NPV are demonstrated considering changes in demand, exchange rates and total available capacity.
Keywords Supply chain design Process exibility Product allocation
1 Introduction
Production networks of automotive manufacturers imply worldwide locations, which need to be coordinated considering global supply and sales regions. In future, the complexity of these networks will increase because of shorter product life cycles, an increasing number of variants and product types and new manufacturing plants in various geographical areas. A trans-sectoral strategical planning is, therefore, necessary to ensure an efcient use of resources.
In general, strategic planning of production networks concerns decisions on structural and product-specic capacity investments subject to a multitude of general
S. Kauder (B) H. Meyr
Department of Production and Supply Chain Management,Technical University of Darmstadt, Hochschulstr. 1, 64 289 Darmstadt, Germany e-mail: [email protected]
H. Meyre-mail: [email protected]
Strategic network planning for an international automotive manufacturer
Balancing exibility and economical efciency
Saskia Kauder Herbert Meyr
123
508 S. Kauder, H. Meyr
conditions and constraints. In particular, facility locations and expansions need to be specied while regarding the resulting network ows in supply, production and distribution. This is usually done 3years before capacity is actually installed for a planning horizon of 10years, enhancing future implications of the decisions made. Therefore, no or little information on product demands exist for the planning horizon considered.
General conditions on strategic network planning (SNP) are either of legal, nancial or physical nature, where international networks are facing additional aspects to national networks. Exchange rates and duties, which increase uncertainty in the planning process, are some of them. Hence, in addition to nancial objectives, it is important to build robust and exible networks for being able to adapt to...