Faculty Publications
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.
Department
Department of Management
Original Publication Date
1-1-1996
DOI of published version
10.1080/00207549608904901
Recommended Citation
Siha, S. and Das, C., "A Model For The Optimal Timing And Sizing Of Capacity Increments For Single-Location Facilities" (1996). Faculty Publications. 4195.
https://scholarworks.uni.edu/facpub/4195
