Strategic capacity allocation and resource sizing in a multi-plant system with resource transfer possibility

Last decades firms have moved toward Supply Chain organizations. It has been characterized by partners´ integration and new production practices. One of these is the share of high purchase price resources between distinct facilities. It is a way to reduce investment associated to resource sizing while preserving operational efficiency. Consequently, it must be tackled during strategic capacity allocation and resources sizing process while considering operational impact. Surprisingly, even if this phenomenon is more and more relevant few researches have been made on it. In this article, we propose a model for strategic capacity allocation and resources sizing of a multi-plant system tackling resources transfer possibility and integrating operational impacts. Moreover original process and safety constraint is considered; it means a minimum volume independent number of resources required to achieve production. Model takes the form of a Mix Integer Linear Program (MILP) which objective is to maximize demand satisfaction while minimizing design and operational costs. Some illustrative numerical examples are given. Its show the importance of resource transfers possibility consideration during strategic process all the more so as resource purchase prices are high.