Dynamic Containerized Modular Capacity Planning and Resource Allocation in Hyperconnected Supply Chain Ecosystems

TL;DR

This paper introduces a dynamic, modular capacity planning and resource allocation model for hyperconnected supply chain ecosystems, leveraging containerization and open sharing concepts to improve efficiency and adaptability.

Contribution

It presents a novel iterative two-stage decision model with a dynamic rolling horizon for capacity and resource planning in supply chains using Mobile Production Containers.

Findings

Improved resource utilization and cost savings in case study

Balanced workload and consistent production schedules achieved

Model adapts to rapid changes in demand and supply conditions

Abstract

With the growth of data-driven services and expansion of mobile application usage, traditional methods of capacity and resource planning methods may not be efficient and often fall short in meeting rapid changes in the business landscape. Motivated by modularity, containerization, and open sharing concepts from Physical Internet (PI), this paper proposes an effective approach to determine facility capacity and production schedule to meet current and future demands by dynamically allocating Mobile Production Containers (MPCs). In this work, we develop an iterative two-stage decision making model with dynamic rolling horizon approach. The first stage is capacity planning stage, where the model determines key decisions such as project selection, facility opening periods and project-facility assignment. The second stage is resource planning stage, where the MPC allocation and relocation schedule and weekly production schedule are decided. To validate the proposed model, we conduct a case study over a modular construction supply chain focusing on the southeast US region. The results demonstrate our model not only delivers a consistent production schedule with balanced workload but also enhances resource utilization, leading to cost effectiveness.