An integrated multi-horizon approach for long-term reconfiguration and mid-term sequencing in global production networks

Rapid adaptation to volatile demand is a critical challenge for production systems in global production networks. While reconfigurable manufacturing systems enable structural adjustments of capabilities and capacities, reconfiguration activities temporarily reduce production feasibility because capabilities can be unavailable during dismantling, transportation, and installation. This paper presents an integrated multihorizon planning approach that jointly considers long-term reconfiguration decisions and mid-term order
allocation, sequencing, and replanning. Mixed-integer linear optimization models explicitly capture reconfiguration with respective dismantling, transportation, and installation processes. Computational results show that reallocating existing capabilities reduces long-term costs, while sequencing and mid-term replanning are essential to avoid backorders and improve responsiveness.