Optimal Planning of Plant Flexibility: Problem Formulation and Performance Analysis

Manufacturing systems are becoming more and more flexible to confront uncertainty in demands of multiple product types. In this paper, we study the properties of flexible manufacturing systems from the perspective of demand shortfall and service level as functions of setup time, nonhomogeneous capacities, and demand distributions. Closed-form bounds as well as an accurate estimate of the service level are obtained. Sensitivity analyses of service level with respect to reductions in setup time, downtime, and cycle time are carried out, and the impact of new product launch and product correlation on system flexibility is investigated.

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