A simulation application in facility expansion decision-making

A manufacturing company wanted to expand its capacity to produce plastic parts. The expansion could cost several million dollars. To decide how many plastic molding presses should be purchased, a computer simulation study was conducted. The object of the study was to find the quantity and type of equipment needed to satisfy production requirements in a just-in-time environment. The model of the plastic molding operation was used to study the effects of lot-size variation, scheduling changes and equipment alternatives on work-in-process, change-over costs, and make-span. Several scenarios were simulated and compared from which the suitable quantity and type of equipment were determined