Dual-perspective capacity planning in interconnected multi-product production networks using stochastic optimisation

Planning production capacities in multi-product production networks is challenging due to the multitude of decision factors, inter-organisational interests, and a high degree of uncertainty. Particularly, the organisational separation of different products that share sites induces planning complexity. This paper proposes an interactive-two model concept integrating product-specific network planning and a site capacity planning perspective. Stochastic mixed integer linear programming determines order allocations, line investments, and personnel plans. The potential to swiftly adapt plans while obeying local constraints is demonstrated with a large automotive supplier. The approach should allow quicker and more adaptive planning, leading to more resilient organisations.