Investment in capacity expansion remains one of the most critical decisions for a manufacturing organisation with global production facilities. Multiple factors need to be considered making the decision process very complex. The purpose of this paper is to establish the state-of-the-art in multi-factor models for capacity expansion of manufacturing plants within a corporation. The research programme consisting of an extensive literature review and a structured assessment of the strengths and weaknesses of the current research is presented. The study found that there is a wealth of mathematical multi-factor models for evaluating capacity expansion decisions however no single contribution captures all the different facets of the problem.
Bibliographical noteNOTICE:- This is the author’s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Julka, N, Baines, TS, Tjahjono, B, Lendermann, P & Vitanov, V, 'A review of multi-factor capacity expansion models for manufacturing plants: searching for a holistic decision aid' International journal of production economics, vol. 106, no. 2 (2007) DOI http://dx.doi.org/10.1016/j.ijpe.2006.08.002
- manufacturing network
- capacity expansion
- multiple factor
- holistic models