Abstract
A company needs to implement several make-to-stock policies apart from a regular make-to-order production, so that the capacity of expensive resources can be fully utilized. The constraints to be considered in such capacity planning problem include finite budget for investing resources, lump demands of customers, decline of products price with time, different product mix for simultaneous manufacturing, time value of capital asset, technology levels of resources, and limited capacity of resources. We focus on the issues of resources acquisition and allocation decision in each production period. The goal is to maximize the long-term profit. This study formulates the problem as a non-linear mixed integer mathematical programming model. A constraint programming based genetic algorithm is developed to solve the problem efficiently.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Bard, J.F., Srinivasan, K., Tirupati, D.: An optimization approach to capacity expansion in semiconductor manufacturing facilities. International Journal of Production Research, 3359–3382 (1999)
Bashyam, T.C.A.: Competitive capacity expansion under demand uncertainty. European Journal of Operational Research, 89–114 (1996)
Gen, M., Cheng, R.: Genetic Algorithms and Engineering Optimization. John Wiley and Sons, Inc., Chichester (2000)
Hsu, J.S.: Equipment replacement policy- a survey. Journal of Production and Inventory Management, 23–27 (1998)
Leachman, R.C., Carmon, T.: On capacity modeling for production planning with alternative machines. IIE Transactions, 62–72 (1992)
Li, S., Tirupati, D.: Technology choice with stochastic demands and dynamic capacity allocation: a two-product analysis. Journal of Operations Management, 239–258 (1995)
Rajagopalan, S.: Capacity expansion with alternative technology choices. European Journal of Operational Research, 392–402 (1994)
Rajagopalan, S.: Adoption timing of new equipment with another innovation anticipated. IEEE Transactions on Engineering Management, 14–25 (1999)
Swaminathan, J.M.: Tool capacity planning for semiconductor fabrication facilities under demand uncertainty. European Journal of Operational Research, 545–558 (2000)
Wang, K.J., Hou, T.C.: Modeling and resolving the joint problem of capacity expansion and allocation with multiple resources and limited budget in semiconductor testing industry. International Journal of Production Research, 3217–3235 (2003)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Wang, S.M., Wang, K.J., Wee, H.M., Chen, J.C. (2005). An Economic Capacity Planning Model Considering Inventory and Capital Time Value. In: Gervasi, O., et al. Computational Science and Its Applications – ICCSA 2005. ICCSA 2005. Lecture Notes in Computer Science, vol 3483. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11424925_36
Download citation
DOI: https://doi.org/10.1007/11424925_36
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-25863-6
Online ISBN: 978-3-540-32309-9
eBook Packages: Computer ScienceComputer Science (R0)