Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
권호 표지

A Parallel Machine Scheduling Problem with Outsourcing Options

아웃소싱을 고려한 병렬기계 일정계획 연구

  • Published : 2008.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

This paper considers an integrated decision for scheduling and outsourcing(or, subcontracting) of a finite number of jobs(or, orders) in a time-sensitive make-to-order manufacturing environment. The jobs can be either processed in a parallel in-house facilities or outsourced to subcontractors. We should determine which jobs should be processed in-house and which jobs should be outsourced. And, we should determine the schedule for the jobs to be processed in-house. If a job is determined to be processed in-house, then the scheduling cost(the completion time of the Job) is imposed. Otherwise(if the job should be outsourced), then an additional outsourcing cost is imposed. The objective is to minimize the linear combination of scheduling and outsourcing costs under a budget constraint for the total available outsourcing cost. In the problem analysis, we first characterize some solution properties and then derive dynamic programming and branch-and- bound algorithms. An efficient heuristic is also developed. The performances of the proposed algorithms are evaluated through various numerical experiments.

Keywords

References

  1. Abdel-Malek, L., Kullpattaranirun, T., and Nanthavanij, S.; "A Framework for Comparing Outsourcing Strategies in Multi-layered Supply Chains," International Journal of Production Economics, 97: 318-328, 2005 https://doi.org/10.1016/j.ijpe.2004.09.001
  2. Baker, K. R.; Introduction to Sequencing and Scheduling, John Wiley and Sons, Inc., New York, 118-119, 1974
  3. Cachon, G. P. and Harker, P. T.; "Competition and Outsourcing with Scale Economies," Management Science, 48 : 1314-1333, 2002 https://doi.org/10.1287/mnsc.48.10.1314.271
  4. Dekkers, R.; "Decision Models for Outsourcing and Core Competencies in Manufacturing," International Journal of Production Research, 38 : 4085-4096, 2000 https://doi.org/10.1080/00207540050204948
  5. Huiskonen, J. and Pirttila, T.; "Lateral Coordination in a Logistics Outsourcing Relationship," International Journal of Production Economics, 78 : 177-185, 2002 https://doi.org/10.1016/S0925-5273(01)00114-1
  6. Kaipia, R. and Tanskanen, K.; "Vendor Managed Category Management-an Outsourcing Solution in Retailing," Journal of Purchasing and Supply Management, 9 : 165-175, 2003 https://doi.org/10.1016/S1478-4092(03)00009-8
  7. Kim, B.; "Dynamic Outsourcing to Contract Manufacturers with Different Capabilities of Reducing the Supply Cost," International Journal of Production Economics, 86 : 63-80, 2003 https://doi.org/10.1016/S0925-5273(02)00473-5
  8. Kouvelis, P. and Milner, J. M.; "Supply Chain Capacity and Outsourcing Decisions: the Dynamic Interplay of Demand and Supply Uncertainty," IIE Transactions, 34 : 717-728, 2002
  9. Lee, I. S. and Sung, C. S.; "Single Machine Scheduling with Outsourcing Allowed," International Journal of Production Economics, 111 : 623-634, 2008 https://doi.org/10.1016/j.ijpe.2007.02.036
  10. Lee, I. S. and Sung, C. S.; "Minimizing Due Date Related Measures for a Single Machine Scheduling with Outsourcing Allowed," European Journal of Operational Research, 186 : 931-952, 2008 https://doi.org/10.1016/j.ejor.2007.02.015
  11. Ngwenyama, O. K. and Bryson, N.; "Making the Information Systems Outsourcing Decision：A Transaction Cost Approach to Analyzing Outsourcing Decision Problems," European Journal of Operational Research, 115 : 351-367, 1999 https://doi.org/10.1016/S0377-2217(97)00171-9
  12. Nicholson, L., Vakharia, A. J., and Erenguc, S. S.; "Outsourcing Inventory Management Decisions in Healthcare: Models and Application," European Journal of Operational Research, 154 : 271-290, 2004 https://doi.org/10.1016/S0377-2217(02)00700-2
  13. Offodile, O. F. and Abdel-Malek L. L.; "The Virtual Manufacturing Paradigm：The Impact of IT/IS Outsourcing on Manufacturing Strategy," International Journal of Production Economics, 75 : 147-159, 2002 https://doi.org/10.1016/S0925-5273(01)00188-8
  14. Tarakci, H., Tang, K., Moskowitz, H., and Plante, R.; "Incentive Maintenance Outsourcing Contracts for Channel Coordination and Improvement," IIE Transactions, 38 : 671-684, 2006 https://doi.org/10.1080/07408170600692259
  15. Tarakci, H., Tang, K., Moskowitz, H., and Plante, R.; "Maintenance Outsourcing of a Multi-process Manufacturing System with Multiple Contractors," IIE Transactions, 38 : 67-78, 2006 https://doi.org/10.1080/07408170500243328
  16. Wu, F., Li, H. Z., Chu, L. K., and Sculli, D.; "An Outsourcing Decision Model for Sustaining Long-term Performance," International Journal of Production Research, 43 : 2513-2535, 2005 https://doi.org/10.1080/00207540500045717
  17. Yang, J., Qi, X., and Xia, Y.; "A Production-inventory System with Markovian Capacity and Outsourcing Option," Operations Research, 53 : 328-349, 2005 https://doi.org/10.1287/opre.1040.0165