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Practice Summary: Capacity Planning in the Presence of Sequence-Dependent Setups at AstraZeneca Pharmaceuticals

Author

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  • Adam Fleischhacker

    (Department of Business Administration, University of Delaware, Newark, Delaware 19716)

  • Bintong Chen

    (Department of Business Administration, University of Delaware, Newark, Delaware 19716)

  • Hemant Kher

    (Department of Business Administration, University of Delaware, Newark, Delaware 19716)

  • Mariano Mazal

    (Formulation Operations, AstraZeneca Pharmaceuticals LP, Newark, Delaware 19702)

  • Bob Pfender

    (Formulation Operations, AstraZeneca Pharmaceuticals LP, Newark, Delaware 19702)

Abstract

We implemented a capacity planning tool for AstraZeneca Pharmaceuticals LP(AZPLP), a U.S. subsidiary of a global innovative biopharmaceutical company specializing in the discovery, development, manufacturing, and marketing of prescription medicines. In this paper, we discuss the challenges of estimating capacity in this setting and use them to bring attention to the importance of minor setups. To aid capacity planning in this environment of nonlinear sequence-dependent setup times, we solve a linearized formulation of the problem using a Microsoft Excel-based optimization tool that we developed. The tool has contributed to significant reductions in planning time at AstraZeneca and greater confidence by management in any particular capacity plan’s efficiency and feasibility.

Suggested Citation

  • Adam Fleischhacker & Bintong Chen & Hemant Kher & Mariano Mazal & Bob Pfender, 2015. "Practice Summary: Capacity Planning in the Presence of Sequence-Dependent Setups at AstraZeneca Pharmaceuticals," Interfaces, INFORMS, vol. 45(4), pages 358-362, August.
    • Handle: RePEc:inm:orinte:v:45:y:2015:i:4:p:358-362
    DOI: 10.1287/inte.2015.0801
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    References listed on IDEAS

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    1. Diethard Klatte & Hans-Jakob Lüthi & Karl Schmedders (ed.), 2012. "Operations Research Proceedings 2011," Operations Research Proceedings, Springer, edition 127, number 978-3-642-29210-1, April.
    2. Subhash C. Sarin & Hanif D. Sherali & Lingrui Liao, 2014. "Primary pharmaceutical manufacturing scheduling problem," IISE Transactions, Taylor & Francis Journals, vol. 46(12), pages 1298-1314, December.
    3. Drexl, A. & Kimms, A., 1997. "Lot sizing and scheduling -- Survey and extensions," European Journal of Operational Research, Elsevier, vol. 99(2), pages 221-235, June.
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    Cited by:

    1. Wang, Julong & Liu, Zhixue & Li, Feng, 2024. "Integrated production and transportation scheduling problem under nonlinear cost structures," European Journal of Operational Research, Elsevier, vol. 313(3), pages 883-904.

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