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 the entire chain. In the article, we were investigating how investment in robots could influence the Net Present Value (NPV) of a supply chain. The model is based on the Extended MRP skeleton. We have analysed the investments in robots as a share of labour costs which enable decision-makers to a trade-off between NPV decrease and the collaborative robots. In the paper, we study the trade-off between higher investments in ergonomics and lower NPV. Based on an Italian working environment a numerical application of the model is provided.