Production planning in automotive powertrain plants: a case study

Based on a real case study from the automotive industry, this paper deals with production planning in powertrain plants. We present an overview of the production planning process and propose a mixed integer linear programme to determine the production quantities of each product over a planning horizon of several days. Then, using real data of an engine assembly line, we simulate the performance obtained through the proposed model within a rolling horizon planning process. We perform multiple tests in order to evaluate the impact of two parameters involved in this process: planning frequency and frozen horizon length. Furthermore, in order to illustrate the value of improving coordination between engine plants and their customers, we evaluate the impact of the quality of demand information (orders and forecasts). We analyse the simulation results and provide insights and recommendations in order to achieve a good trade-off between service level, inventory, and planning stability.