Volume flexibility

Jordan and Graves (1995) analyze volume flexibility that can be achieved via product-plant assignment choices in a multi-plant, multiproduct production network when faced with uncertain demand. Based on a 10 plants/10 products example they demonstrate that, if correctly designed, a network with partial flexibility can yield almost the same volume flexibility benefits as a totally flexible network where all plants are able to produce all products. Their recommendation is that products should be allocated to plants in a "chain pattern" with the complete network ideally creating a single chain instead of several shorter chains (cf. Fig. 5). For more complex networks their recommendation is to equalize the number of plants a product is directly connected to and the number of products to which each plant is directly connected and create a circuit that encompasses as many plants and products as possible. 

Volume flexibility The ability to vary production volume profitably within production capacity... 

Sabri and Beamon (2000) consider a four-stage (suppliers, plants, DCs, and customer zones) problem with both strategic (plant and DC locations) and tactical decisions. Demands for products are deterministic and have to be satisfied. There are fixed costs associated with DCs and transportation links between DCs and customer zones. Production cost is assumed to be linear. Two objectives are considered (a) Total cost, (b) Volume flexibility (difference between plant capacity and its utilization, and difference between DC capacity and its utilization). The strategic sub-model of the problem is formulated as a multi-objective MIR Two operational sub-models (suppliers, production) are formulated and solved as a non-linear programming problem. An overall iterative procedure is proposed which combines the strategic sub-model with the operational sub-models. 

Toyota has expanded cautiously in Europe. Its investment policy has been step by step, and it has sought to make early returns. Key to Toyota Production System (TPS) are process and quality disciplines through jIT and jidoka. Toyota s philosophy is more people-oriented shop floor people are heavily involved in improvement activities as well as in production work. Toyota s body shop has maybe one-third the number of press shop robots as Ford, and tends to use simple multi-welders at low initial cost. It is relatively easy to swap suppliers. Tooling must be changed when production is changed between one batch and another, but people are trained to go for fast setups and to improve the process. The layout is designed around people and volume flexibility. 

Volume flexibility refers to a firm s ability to operate profitably at different levels of output. Volume flexibility is critical in cychcal industries. Firms in the automotive industry that lacked volume flexibihty were badly hurt in 2008 when demand for automobiles in the United States shrank significantly. The steel industry is an example in which some volume flexibility and consolidation have helped performance. Prior to 2000, firms had limited volume flexibility and did not adjust production volumes when demand started to fall. The result was a buildup of inventories and a significant drop in the price of steel. In the early 2000s, a few large firms consolidated and developed some volume flexibility. As a result, they were able to cut production as demand fell. The result has been less buildup of inventory and smaller drops in price during downturns, followed by a quicker recovery for the steel industry. 

PERIOD 2 EVALUATION The detailed analysis for the node D = 144 (solar panel demand of 144,000), E = 10.89 (exchange rate of 10.89 yuan per euro) is as follows. Even though demand is for 144,000 panels, given its lack of volume flexibility, the offshore facility is able to produce only 130,000 panels at a variable cost of 340 yuan each and sell each panel for a revenue of 70. Revenues and costs are evaluated as follows ... 

From Example 8-2, observe that increasing volume flexibility (by decreasing the cost of hiring and layoff) not only decreases the total cost but also shifts the optimal balance toward using the volume flexibility while carrying lower inventories and allowing less stockout. 

In large-volume rigid PVC appheations, dry blend is used directly to manufacture articles such as pipe, siding, and window profiles. Certain high-volume flexible... 

Unlike other large-volume flexible PVC applications such as wire and cable, the manufacturing processes used to make PVC plastisol-based products are quite varied. Obviously, resin selection for PVC plastisols is governed as much by the manufacturing process as by the end use application. The viscosity characteristics imparted to the plastisol by the resin are a key factor in resin selection. The use of copolymer resins in plastisol manufacturing processes will be discussed in Section 2.9.3. 

Flexibility is as acceptable an objective for today s industrial community as is automation. Thus, the title of this conference proceedings volume -Flexible Automation - reflects an added emphasis to the usual industrial automation. As with general automation that has impacted every component of the manufacturing office and plant, the identity of flexible automation can possess various forms and functions. 

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