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OPTIMIZATION OF FACILITY LOCATION

by Garay Itziar Ocon

Institution: KTH Royal Institute of Technology
Department:
Degree:
Year: 2016
Keywords: Engineering and Technology; Mechanical Engineering; Teknik och teknologier; Maskinteknik
Posted: 2/5/2017 12:00:00 AM
Record ID: 2135338
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-192681


Abstract

The literature study done in location problems and parameters that a company should consider when taking a location decision for a factory, has been used to solve the Case Study. The case is addressed for a Spanish company that manufactures Extruded Polystyrene Foam (XPS) among other products for building isolation. The company has its production and main markets located in Spain and Portugal, however the expansion to other markets in Europe and Morocco has made the firm face a location of manufacturing facilities decision.  The decision involved determining which two of the three factories the company owns, are more cost efficient for locating the production of XPS. The choice was based on minimizing the total cost, which included the cost of transport of raw material and final products and the workforce cost.  To achieve the most optimal result the analysis was divided in three parts. The first part related with Transportation cost of final product from factory to markets was minimized using the Excel Solver Tool. In the second and third part the workforce costs and the transportation cost of raw material were calculated with the production levels for each factory in each scenario achieved in the first part of the analysis. The proposal for Company A was made considering the results of the quantitative factors analysis as well as some qualitative aspects like centralization or coordination problems. Finally it was concluded that the factory located in Leiria is very profitable and its production should not be move and that the firm should transfer the manufacturing from Tudela to Fontanar if the demand in UK and France will stay stable from 2019 onwards. ; Den utföra litteraturstudien om lokaliseringsproblematiken och de parametrar som ett företag bör ta hänsyn till vid beslut om lokalisering av en fabrik/anläggning, har använts som underlag vid angripandet av fallstudien. Fallstudien behandlar ett spanskt företag som bland annat tillverkar extruderat polystyrenskum (Extruded Polystryrene Foam = XPS) vilket andvänds som isolering vid byggnation. Företaget har sin produktion och huvudsakliga marknad i Spanien  och Portugal. Expansionsplanerna för andra marknader i Europa och Marocko har emellertid gjort att företaget måste fatta beslut om lokaliseringen av tillverkningsfaciliteterna. Man måste ta ställning till och fatta beslut om vilka två av företagets nuvarande tre ägda fabriker som är mest kostnadseffektiva med avseende på lokalisering av produktionen av XPS.   Valet baserade sig på hur man kan minimera den totala kostnaden, vilken inkluderar kostnaden för transport av råmaterial, färdiga produkter och kostnaden för arbetsstyrkan. För att uppnå det mest optimala resultatet delades analysen upp i tre delar. I den första delen med koppling till transportkostnaderna för de färdiga produkterna från fabrik till marknad minimerades kostnaderna genom att använda Excel Solver Tool. I den andra och tredje delen beräknades kostnaden för arbetsstyrkan och transportkostnaden för råmaterialet…

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