Optimal Capacity Conversion for Product Transitions Under High Service Requirements

摘要: We consider the capacity planning problem during a product transition in which demand for new-generation gradually replaces that old product. Capacity new can be acquired both by purchasing production lines and converting existing Furthermore, either case, is “retrofitted” to flexible, i.e., able also produce This arises regularly at Intel, served as motivating context this research. formulate two-product model determine equipment purchase conversion schedule, considering (i) time-varying uncertain demand, (ii) dedicated flexible capacity, (iii) inventory costs, (iv) chance-constrained service-level requirement. develop solution approach accounts risk-pooling benefit of (a closed-loop approach) compare it with th...