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EVALUATING THE TRADE‐OFFS BETWEEN IDLING AND SHUTTING DOWN PRODUCTION LINES IN PROCESS INDUSTRIES
Author(s) -
Matta Renato,
Miller Tan
Publication year - 1996
Publication title -
production and operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.279
H-Index - 110
eISSN - 1937-5956
pISSN - 1059-1478
DOI - 10.1111/j.1937-5956.1996.tb00406.x
Subject(s) - idle , production (economics) , process (computing) , plan (archaeology) , production line , business , time horizon , operations management , computer science , industrial organization , economics , microeconomics , marketing , finance , history , operating system , archaeology
The costs of starting‐up and shutting down production lines (and plants) in a process industry are often quite high. Therefore, when a plant's capacity significantly exceeds its forecast demand over an annual planning horizon, a manufacturer must either plan temporary production line shutdowns during the year, or plan to temporarily idle production lines without formally shutting line(s) down. The trade‐offs between these two strategies can be complex. In this paper, we propose a methodology to evaluate the impact of both strategies on a plant's production costs by developing an analytical model based on the authors' experience with several process industries.