Rough-cut capacity planning for remanufacturing firms

Capacity planning is a critical element of any successful production planning and control system. A method of rough-cut capacity planning is developed, based on the bill-of-resources approach, that can be used to plan for capacity required for firms in a remanufacturing (including overhaul/repair operations) environment. The modifed bill-of-resources approach developed takes into account two major stochastic elements inherent in this environment; probabilistic material replacement factors and probabilistic routing files. A detailed example from an actual repair/overhaul operation is presented to illustrate the technique.