Simulation-based assessment of alternative HR concepts for the design of service-based business models

Shorter product life cycles and rising demands for product variants increasingly lead to capacity demand fluctuations and result in unsatisfactory degrees of assembly system capacity utilization. By offering additional assembly capacities to their customers, manufacturers of assembly systems can establish a promising new business model. If the assembly system manufacturer takes over the responsibility for operating assembly systems, it has to be decided which HR option, recruiting own employees or leasing personnel from a temporary employment agency is best suited for this new business model. In this article a System Dynamics model is introduced that can be used for the assessment of such alternative HR concepts.