Abstract
In this work we analyse the way a manufacturer’s fixed-costs should be allocated to each production order rather than the way they are currently allocated. Using that information, we introduce a facility location model where fixed-costs are incurred when opening a facility; time-knapsacks representing production lines are assigned to the facility, adding another layer of fixed-costs; and finally, production orders are allocated to knapsacks with corresponding variable costs. Using a real situation, resulting solutions have higher capacity utilisation, smaller and fewer facilities than current network design. Serving demand from closest facility is also less frequent.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
