Capacity unbalancing and total logistic cost

Abstract

This article presents a discussion about productive capacity balancing and its effects in the total logistical costs, suggesting a mathematical model for the optimization of the capacity structure. To propose the model a literature study based on journal articles and books were conducted, using Theory Of Constraints – TOC as the theoretical framework. At the end, the model suggests that the inventory costs, the coefficient of variation in processing time and the coefficient of variation in arrivals are the relevant variables to verify if the investment in extra capacity is feasible.