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The Tradeoff between Outsourcing and Using More Factories in a Distributed Flow Shop System

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  • Mohammad Mohammadi

    (Department of Industrial Engineering, Faculty of Engineering Kharazmi University, Tehran, Iran)

Abstract

Simultaneous lot-sizing and scheduling in a distributed flow shop has been considered in this paper. Number of factories is a parameter and it is not necessary to use all factories. Outsourcing is the other realistic assumption of this paper. In other words, the tradeoff between outsourcing and number of utilized factories is discussed in this paper. An exact formulation of the problem has been provided as a mixed integer program. To solve the problem, a heuristic has been developed.

Suggested Citation

  • Mohammad Mohammadi, 2017. "The Tradeoff between Outsourcing and Using More Factories in a Distributed Flow Shop System," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(4), pages 279-295.
    • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:4:p:279-295
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    References listed on IDEAS

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    1. Clark, Alistair R., 2003. "Optimization approximations for capacity constrained material requirements planning," International Journal of Production Economics, Elsevier, vol. 84(2), pages 115-131, May.
    2. Chung, Dae-Young & Choi, Byung-Cheon, 2013. "Outsourcing and scheduling for two-machine ordered flow shop scheduling problems," European Journal of Operational Research, Elsevier, vol. 226(1), pages 46-52.
    3. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    4. Fandel, Gunter & Stammen-Hegene, Cathrin, 2006. "Simultaneous lot sizing and scheduling for multi-product multi-level production," International Journal of Production Economics, Elsevier, vol. 104(2), pages 308-316, December.
    5. Defersha, Fantahun M. & Chen, Mingyuan, 2008. "A linear programming embedded genetic algorithm for an integrated cell formation and lot sizing considering product quality," European Journal of Operational Research, Elsevier, vol. 187(1), pages 46-69, May.
    6. Jans, Raf & Degraeve, Zeger, 2007. "Meta-heuristics for dynamic lot sizing: A review and comparison of solution approaches," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1855-1875, March.
    7. Karimi, B. & Fatemi Ghomi, S. M. T. & Wilson, J. M., 2003. "The capacitated lot sizing problem: a review of models and algorithms," Omega, Elsevier, vol. 31(5), pages 365-378, October.
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    Cited by:

    1. Yuan-Shyi Peter Chiu & Victoria Chiu & Tsu-Ming Yeh & Hua-Yao Wu, 2020. "Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision," Mathematics, MDPI, vol. 8(12), pages 1-19, December.
    2. Chiu, Singa Wang & Chen, Hui-Cun & Wu, Hua-Yao & Chiu, Yuan-Shyi Peter, 2020. "A hybrid finite production rate system featuring random breakdown and rework," Operations Research Perspectives, Elsevier, vol. 7(C).

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    More about this item

    Keywords

    Outsourcing; Distributed flow shop; Lot-sizing and scheduling; Assignment; Sequence-dependent.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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