EMSS 2011 Proceeding

A Simulation-Based Capacity Planning Model: a Case Study In a Contract Furnishing Sme

Authors:   Nadia Rego Monteil, David del Rio Vilas, Diego Crespo Pereira, Rosa Rios Prado, Arturo Nieto de Almeida

Abstract

The contract furnishing sector ?stores, hotels and public facilities? is characterized for working under a MTO philosophy, having worldwide clients, a flexible and highly manual process and a high mix of products. In the presence of these sources of variability, the lack of a proactive planning drives to outsourcing and cost overruns. This paper presents a case study of capacity assessment in a Spanish SME of manufacturing, distribution and assembly of contract furnishing. To do so, a Monte Carlo simulation approach was adopted, with stochastic values for demand, process and product parameters. Based on historical data and expert interviews a spreadsheet-based model was proposed in order to represent the variability. As a result, capacity anticipation under different scenarios was provided (i) at present conditions, (ii) with an increased demand and, (iii) in case of a change in the type of production orders.

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