The optimisation of plant loading within the context of manufacturing strategy

Capacity is an essential manufacturing strategy content variable, as the degree of capacity provided will effect company profit. This paper investigates the role of capacity planning within manufacturing strategy and presents the development of an optimisation model to aid plant loading. Initially, a review of capacity planning in relation to time horizons and production processes is performed, and the limitations of techniques in the context of order winning criteria is discussed. Subsequently the development of a computer based capacity planning model is described. The model comprises a novel arrangement of long, intermediate and short term horizons in a single system, thus providing management with a tool to determine the effects of strategic planning decisions. The validity of the model is described by a case study