Determination of permanent and contingent capacity in a make-to-order environment under a lead time performance constraint, by Andres de Meijer (with Philips Healthcare)

Determination of permanent and contingent capacity in a make-to-order environment under a lead time performance constraint, by Andres de Meijer (with Philips Healthcare)

By: jacobsadm

June 8, 2013

Repair shops in the service logistics sector, and make-to-order environments in general, have difficulties in meeting the on-time delivery target set by management, due to a very fluctuating arrival of repairs. One of the reasons is a mismatch between the workforce capacity and the required capacity levels. In this thesis, a periodic capacity decision model is developed which helps the unit manager of a repair shop with this capacity decision. The unit manager is able to expand the workforce by acquiring labour from an external labour supply agency. By making use of a queueing network and simulation model, the link between the arrival process of parts (which is non-stationary), the capacity and the delivery performance is made. In addition, given the distribution of the capacity levels needed, a cost optimal level of the permanent workforce is determined.