INFORMS Journal on Applied Analytics · 2006 · 133 citations · 11 references
ManagementOperations ManagementStrategic ManagementOperations PlanningProduction PlanningStrategic PlanningGlobal Operations StrategyGlobal Production NetworksGlobal Supply Chain StrategyInternational Production NetworksManufacturing StrategyStrategy FormulationFinancial Impact AnalysisFinancial Performance ImpactGlobal Capacity AllocationGlobal Production AllocationGlobal Production PlanningIncremental Cash FlowsPlanning Horizon AnalysisStrategic Planning Process
We developed a strategic-planning model to optimize BMW’s allocation of various products to global production sites over a 12-year planning horizon. It includes the supply of materials as well as the distribution of finished cars to the global markets. It determines the investments needed in the three production departments, body assembly, paint shop, and final assembly, for every site and the financial impact on cash flows. The model has improved the transparency and flexibility of BMW’s strategic-planning process.
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