Faculty Publications

Title

A model for the optimal timing and sizing of capacity increments for single-location facilities

Document Type

Article

Journal/Book/Conference Title

International Journal of Production Research

Volume

34

Issue

1

First Page

273

Last Page

284

Abstract

This paper develops and tests a mixed-integer programming model for finding the optimal timing and sizing of plant capacities, The object of the model is to minimize the total discounted costs over a planning horizon. The factors that are considered for this purpose are the current and future values of the following: discount rates, construction and setup costs, operating costs, subcontracting costs, idle costs of excess capacities, and growth rates of demand. Actual data from a set of electrical power generating facilities are utilized to test the model. Several variations in time paths of demand, and the cost factors are considered to assess the effects of each factor on the timing and sizing decisions. © 1996 Taylor & Francis Group, LLC.

Original Publication Date

1-1-1996

DOI of published version

10.1080/00207549608904901

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