eprintid: 120
rev_number: 4
eprint_status: archive
userid: 5
dir: disk0/00/00/01/20
datestamp: 2008-01-24
lastmod: 2015-05-29 19:47:42
status_changed: 2009-04-08 16:54:26
type: report
metadata_visibility: show
item_issues_count: 0
creators_name: Gaur, Daya
contributors_name: Ales, Yanez
contributors_name: Amarie, Andreea
contributors_name: Anderies, John
contributors_name: Bart, Brad
contributors_name: Chertok, Daniel
contributors_name: Gupta, Arvind
contributors_name: Kwok, Kelly
contributors_name: Liu, Jian
contributors_name: Orasch, Markus
contributors_name: Robel, Greg
contributors_name: Sick, Gordon
contributors_name: Simchi, Mohammadreza
contributors_name: Timourian, James
contributors_name: Tse, Ryan
title: An Optimal Strategy for Maintaining Excess Capacity
ispublished: pub
subjects: transport
subjects: aerodef
subjects: finance
studygroups: ipsw2
companyname: Boeing Corporation
full_text_status: public
abstract: Boeing is a manufacturing industry with very low production volumes of very large units. As such, they experience huge fluctuations in demand. A standard inventory model dictates massive changes in production capacity as demand varies.  However all such models assume a continuous production stream. In this report we investigate the following question whether such a model is sensible in a problem of such large scale granularity. We describe a combination of stochastic, financial and simulation models to model the production of airplanes. A  preliminary simulation of the model is also presented.
problem_statement: Year to year, there are wide fluctuations in the demand of airplane orders at Boeing. This causes massive lay-offs and hirings which has very high cost. The problem is to devise a financial strategy to deal with these fluctuations so as to maximize the long term profit of the company.
date: 1998-06-05
date_type: published
citation:   Gaur, Daya  (1998) An Optimal Strategy for Maintaining Excess Capacity.  [Study Group Report]     
document_url: http://miis.maths.ox.ac.uk/miis/120/1/boeing1.pdf