EVALUATING THE TRADE-OFFS BETWEEN IDLING AND SHUTTING DOWN PRODUCTION LINES IN PROCESS INDUSTRIES
Production and Operations Management · 1996 · Volume 5 · Issue 4
DOI: 10.1111/j.1937-5956.1996.tb00406.x
Abstract
The costs of starting-up and shutting down production lines (and plants) in a process industry are often quite high. Therefore, when a plant's capacity significantly exceeds its forecast demand over an annual planning horizon, a manufacturer must either plan temporary production line shutdowns during the year, or plan to temporarily idle production lines without formally shutting line(s) down. The trade-offs between these two strategies can be complex. In this paper, we propose a methodology to evaluate the impact of both strategies on a plant's production costs by developing an analytical model based on the authors' experience with several process industries.
Keywords
PRODUCTION PLANNING WITH CHANGEOVER, MANUFACTURING OPERATIONS AND SCHEDULING, INTEGER ALGORITHMS
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