Validating the capacity planning process and flowline product sequencing through simulation analysis

This article illustrates the integration of discrete event simulation into the capacity planning process of a tier two automobile supplier. In this application, the capacity planning process is able to generate a feasible schedule for the 30% of the product line which generates 80% of the business. The schedule is "feasible" based on the ability to produce sufficient inventory to cover customer demand. The capacity planning process was unable to develop a schedule for the production of the remaining 70% of the product line or take into account shortages in customer supplied materials used in the production process. Simulation is used to validate the capacity planning process as well as generate a feasible schedule for the remaining products during the planning period as well as: evaluating the plan for customer supplied materials; identifying potential areas for improvement in the production process and determining material storage requirements for the facilities planner.