Investment in capacity expansion remains one of the most critical decisions for a manufacturing organisation with global production facilities. Multiple factors need to be considered making the decision process very complex. The purpose of this paper is to establish the state-of-the-art in multi-factor models for capacity expansion of manufacturing plants within a corporation. The research programme consisting of an extensive literature review and a structured assessment of the strengths and weaknesses of the current research is presented. The study found that there is a wealth of mathematical multi-factor models for evaluating capacity expansion decisions however no single contribution captures all the different facets of the problem.
Nirupam Julka, Tim Baines, Benny Tjahjono, Peter Lendermann and Val Vitanov, A review of multi-factor capacity expansion models for manufacturing plants: Searching for a holistic decision aid, International Journal of Production Economics, Volume 106, Issue 2, Special section on organizational structure, culture and operations management: an empirical missing link, April 2007, Pages 607-621.
