Abstract for:Improving decision making for strategic production planning in markets with high dynamics and complexity by combining system dynamics and multi-criteria decision making
Because of the steadily advancing climate change, the share of electric vehicles in road traffic is expected to rise. The key component of an electric vehicle is thereby the battery. This young market for Lithium-Ion batteries (LiB) therefore holds a high economic potential for companies but also a high risk. Under high investments, a competitive production system must be established by means of a suitable production strategy. The strategic planning of production in the context of young markets as for Lithium-Ion batteries is characterized by a high degree of complexity and uncertainties. Under these conditions, strategic decisions can only be made limited rationally and systematically. Decision makers are increasingly less able to predict the impact of their activities on the company performance. These decisions thereby can sometimes be of existential importance for the company. Therefore, this paper provides a combined approach from System Dynamics and multi-criteria decision making to enable decision-makers to learn about the impact of their actions and to formulate robust and advantageous production strategy. Those strategies will help their company to succeed, even under the increasingly turbulent conditions, which will characterize young markets in the future.