Dealing with the Need for Flexibility and Economies of Scope in Global Production Network Design

  • G. Schuh
  • J. Nöcker
  • R. Varandani
  • J. Schwartze
  • R. Schilling
Conference paper

Abstract

The structure of production networks is determined by two key objectives. The first objective lies in the generation of economies of scale which propel the concentration of manufacturing in mass production sites in order to persist in the global market. The second objective is the individualization of products driven by decreasing lot sizes, an unpredictable market demand and growing expectations regarding proximity to the consumer which in turn lead to the need for more flexibility within the production network of companies. The dilemma increases when taking into account that product portfolios are often given due to market requirements, and product architecture is another battlefield of complexity. Todays specific challenge of global production network design therefore is the increasing number of relevant markets and planning objects, which need to be integrated into the planning scope.

Keywords

Production Site Production Network Product Portfolio Target Network Market Requirement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • G. Schuh
    • 1
  • J. Nöcker
    • 1
  • R. Varandani
    • J. Schwartze
      • 1
    • R. Schilling
      • 2
    1. 1.Laboratory for Machine Tools and Production EngineeringRWTH Aachen UniversityAachenGermany
    2. 2.Beiersdorf AGHamburgGermany

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