Strategic configuration of flexible assembly systems: a single period approximation

Research on strategic planning in manufacturing has tended to focus on two themes: (1) integrating manufacturing strategy with business strategy; and (2) aggregate capacity planning and allocation. This paper introduces a new planning problem that provides a bridge from strategy to capacity by focusing on the configuration of key manufacturing resources. The problem is introduced in the context of consumer electronics. As a first step toward developing planning tools, a single period approximation is formulated. The single period model provides some analytical insights and leads to two solution approaches. Specific algorithms are developed and computationally tested. Directions for future research are described.