The effect of (short-term) capacity adjustments in determining optimal capacity levels in a make-to-order environment under a lead-time performance constraint, by Jeroen Ligthart (with Docdata)

The effect of (short-term) capacity adjustments in determining optimal capacity levels in a make-to-order environment under a lead-time performance constraint, by Jeroen Ligthart (with Docdata)

By: jacobsadm

June 8, 2013

Reverse logistics departments, and make-to-order environments in general, face problems in meeting service level agreements regarding due dates. Main reasons are on the one hand the fluctuating arrivals of returns and on the other hand an inaccurate forecast. A logical consequence is a mismatch between the workforce capacity and the required capacity levels. In this thesis, a capacity model is developed to help the unit manager gaining insights in how to cope with the volatile demand, considering the forecast’s inaccuracy. The unit manager is able to expand the current workforce consisting of permanent workers by hiring contingent capacity from an external labor supply agency. By simulating various demand realizations, insights in scaling decisions on contingent capacity levels are given.