Service and Operations Management

Capacity Planning for Growth at Pirelli

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Pirelli shows a global demand growth in a noise-cancelling tyre technology for the coming years. Antonio Rossi, VP Global Operations has to present a strategic capacity plan that determines the capacity investments (and deinvestments) per plant and how allocate volumes to every plant. The demand is different per regions and the manufacturing costs per plant are different too so Antonio must decide the strategic capacity plan per plant and the optimal supply/demand allocation plan considering the economical and non-economical factors.
Bibliographic citation: JANÉ MARCET, J., NOVOA, A., BURROW, F. (2022). Capacity Planning for Growth at Pirelli. IESE, P-1200-E.
Date: 01/03/2022
Author(s): Joan Jané; Alvaro Novoa; Finn Burrow
Document type: Case
Department: Production, Technology and Operations Management
Languages: English
Year of the events: 2021
Learning objective How to manage trade-off decisions regarding operations costs and manufacturing capacity investments in front of a global tyre demand with a global manufacturing footprint. Evaluate structural capacity management investments and capacity allocation decisions at regional level by working on a opensolver simulation case.