Strategic Planning of BMW's Global Production Network

Authors:
Bernhard Fleischmann;Sonja Ferber;Peter Henrich
Affiliations:
Department of Production and Logistics, University of Augsburg, Universitätsstraße 16, D-86135 Augsburg, Germany;BMW AG, D-80788 München, Germany;BMW AG, D-80788 München, Germany
Venue:
Interfaces
Year:
2006

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Abstract

We developed a strategic-planning model to optimize BMW's allocation of various products to global production sites over a 12-year planning horizon. It includes the supply of materials as well as the distribution of finished cars to the global markets. It determines the investments needed in the three production departments, body assembly, paint shop, and final assembly, for every site and the financial impact on cash flows. The model has improved the transparency and flexibility of BMW's strategic-planning process.