INVESTMENTS IN WORKPLACE ERGONOMICS FROM THE SUPPLY CHAIN APPROACH

Abstract

In Europe, the number of people aged 65 and older is growing from 85 million today to more than 151 million in 2060. Therefore, the retirement age of industrial workers is rising. However, many workers are not able to work until they have reached the increased retirement age 70. Often, they are producing fewer products with lower quality. Delays and disruptions in one activity cell of a supply chain can have a ripple effect throughout entire chain. In the article, we are investigating how investment in robots could influence Net Present Value (NPV) of a supply chain. The model is based on the Extended MRP skeleton. The investments in robots are analysed as a share of labour costs which enable decision-makers to trade-off between NPV decrease and the collaborative robots. The trade-off between higher investments in ergonomics and lower NPV is considered. Based on an Italian working environment a numerical application of the model is provided.