IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v213y2011i3p489-497.html
   My bibliography  Save this article

Two-stage production scheduling with an outsourcing option

Author

Listed:
  • Lee, Kangbok
  • Choi, Byung-Cheon

Abstract

This paper considers a two-stage production scheduling problem in which each activity requires two operations to be processed in stages 1 and 2, respectively. There are two options for processing each operation: the first is to produce it by utilizing in-house resources, while the second is to outsource it to a subcontractor. For in-house operations, a schedule is constructed and its performance is measured by the makespan, that is, the latest completion time of operations processed in-house. Operations by subcontractors are instantaneous but require outsourcing cost. The objective is to minimize the weighted sum of the makespan and the total outsourcing cost. This paper analyzes how the model's computational complexity changes according to unit outsourcing costs in both stages and describes the boundary between NP-hard and polynomially solvable cases. Finally, this paper presents an approximation algorithm for one NP-hard case.

Suggested Citation

  • Lee, Kangbok & Choi, Byung-Cheon, 2011. "Two-stage production scheduling with an outsourcing option," European Journal of Operational Research, Elsevier, vol. 213(3), pages 489-497, September.
    • Handle: RePEc:eee:ejores:v:213:y:2011:i:3:p:489-497
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221711002748
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nowicki, Eugeniusz & Zdrzalka, Stanislaw, 1988. "A two-machine flow shop scheduling problem with controllable job processing times," European Journal of Operational Research, Elsevier, vol. 34(2), pages 208-220, March.
    2. Lee, Ik Sun & Sung, C.S., 2008. "Minimizing due date related measures for a single machine scheduling problem with outsourcing allowed," European Journal of Operational Research, Elsevier, vol. 186(3), pages 931-952, May.
    3. Lee, Ik Sun & Sung, C.S., 2008. "Single machine scheduling with outsourcing allowed," International Journal of Production Economics, Elsevier, vol. 111(2), pages 623-634, February.
    4. Bertrand, J. W. M. & Sridharan, V., 2001. "A study of simple rules for subcontracting in make-to-order manufacturing," European Journal of Operational Research, Elsevier, vol. 128(3), pages 509-531, February.
    5. Jian Yang & Xiangtong Qi & Yusen Xia, 2005. "A Production-Inventory System with Markovian Capacity and Outsourcing Option," Operations Research, INFORMS, vol. 53(2), pages 328-349, April.
    6. Chung, Daeyoung & Lee, Kichang & Shin, Kitae & Park, Jinwoo, 2005. "A new approach to job shop scheduling problems with due date constraints considering operation subcontracts," International Journal of Production Economics, Elsevier, vol. 98(2), pages 238-250, November.
    7. James R. Bradley, 2004. "A Brownian Approximation of a Production-Inventory System with a Manufacturer That Subcontracts," Operations Research, INFORMS, vol. 52(5), pages 765-784, October.
    8. Ruiz-Torres, Alex J. & Ho, Johnny C. & Lopez, Francisco J., 2006. "Generating Pareto schedules with outsource and internal parallel resources," International Journal of Production Economics, Elsevier, vol. 103(2), pages 810-825, October.
    9. Alper Atamtürk & Dorit S. Hochbaum, 2001. "Capacity Acquisition, Subcontracting, and Lot Sizing," Management Science, INFORMS, vol. 47(8), pages 1081-1100, August.
    10. Nowicki, Eugeniusz, 1993. "An approximation algorithm for the m-machine permutation flow shop scheduling problem with controllable processing times," European Journal of Operational Research, Elsevier, vol. 70(3), pages 342-349, November.
    11. Gérard P. Cachon & Patrick T. Harker, 2002. "Competition and Outsourcing with Scale Economies," Management Science, INFORMS, vol. 48(10), pages 1314-1333, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    2. Thürer, Matthias & Stevenson, Mark & Qu, Ting & Godinho Filho, Moacir, 2014. "The design of simple subcontracting rules for make-to-order shops: An assessment by simulation," European Journal of Operational Research, Elsevier, vol. 239(3), pages 854-864.
    3. Zhen, Lu, 2014. "A three-stage optimization model for production and outsourcing under China’s export-oriented tax policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 1-20.
    4. Della Croce, Federico & Koulamas, Christos & T'kindt, Vincent, 2017. "A constraint generation approach for two-machine shop problems with jobs selection," European Journal of Operational Research, Elsevier, vol. 259(3), pages 898-905.
    5. 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.
    6. Shabtay, Dvir & Gerstl, Enrique, 2024. "Coordinating scheduling and rejection decisions in a two-machine flow shop scheduling problem," European Journal of Operational Research, Elsevier, vol. 316(3), pages 887-898.
    7. Mohammed Haoues & Mohammed Dahane & Nadia Kenza Mouss, 2019. "Outsourcing optimization in two-echelon supply chain network under integrated production-maintenance constraints," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 701-725, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qi, Xiangtong, 2011. "Outsourcing and production scheduling for a two-stage flow shop," International Journal of Production Economics, Elsevier, vol. 129(1), pages 43-50, January.
    2. Thürer, Matthias & Stevenson, Mark & Qu, Ting & Godinho Filho, Moacir, 2014. "The design of simple subcontracting rules for make-to-order shops: An assessment by simulation," European Journal of Operational Research, Elsevier, vol. 239(3), pages 854-864.
    3. 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.
    4. Choi, Byung-Cheon & Chung, Jibok, 2011. "Two-machine flow shop scheduling problem with an outsourcing option," European Journal of Operational Research, Elsevier, vol. 213(1), pages 66-72, August.
    5. Jianfeng Ren & Guo Sun & Yuzhong Zhang, 2017. "The Supplying Chain Scheduling with Outsourcing and Transportation," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(02), pages 1-13, April.
    6. Zhong, Xueling & Fan, Jie & Ou, Jinwen, 2022. "Coordinated scheduling of the outsourcing, in-house production and distribution operations," European Journal of Operational Research, Elsevier, vol. 302(2), pages 427-437.
    7. Choi, Byung-Cheon & Chung, Kwanghun, 2016. "Min–max regret version of a scheduling problem with outsourcing decisions under processing time uncertainty," European Journal of Operational Research, Elsevier, vol. 252(2), pages 367-375.
    8. Yasemin Merzifonluoğlu & Joseph Geunes & H.E. Romeijn, 2007. "Integrated capacity, demand, and production planning with subcontracting and overtime options," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(4), pages 433-447, June.
    9. Lee, Ik Sun & Sung, C.S., 2008. "Single machine scheduling with outsourcing allowed," International Journal of Production Economics, Elsevier, vol. 111(2), pages 623-634, February.
    10. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    11. Lingfa Lu & Liqi Zhang & Jinwen Ou, 2021. "In-house production and outsourcing under different discount schemes on the total outsourcing cost," Annals of Operations Research, Springer, vol. 298(1), pages 361-374, March.
    12. Jansen, Klaus & Mastrolilli, Monaldo & Solis-Oba, Roberto, 2005. "Approximation schemes for job shop scheduling problems with controllable processing times," European Journal of Operational Research, Elsevier, vol. 167(2), pages 297-319, December.
    13. Jinwen Ou & Xueling Zhong, 2017. "Order acceptance and scheduling with consideration of service level," Annals of Operations Research, Springer, vol. 248(1), pages 429-447, January.
    14. Jan A. Van Mieghem, 2003. "Commissioned Paper: Capacity Management, Investment, and Hedging: Review and Recent Developments," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 269-302, July.
    15. Zhong, Xueling & Ou, Jinwen & Wang, Guoqing, 2014. "Order acceptance and scheduling with machine availability constraints," European Journal of Operational Research, Elsevier, vol. 232(3), pages 435-441.
    16. Selvi, Omer & Gokbayrak, Kagan, 2010. "A search method for optimal control of a flow shop system of traditional machines," European Journal of Operational Research, Elsevier, vol. 205(2), pages 325-331, September.
    17. Ou, Jinwen & Zhong, Xueling & Wang, Guoqing, 2015. "An improved heuristic for parallel machine scheduling with rejection," European Journal of Operational Research, Elsevier, vol. 241(3), pages 653-661.
    18. Boulaksil, Youssef & Fransoo, Jan C., 2009. "Order release strategies to control outsourced operations in a supply chain," International Journal of Production Economics, Elsevier, vol. 119(1), pages 149-160, May.
    19. Baoyu Liao & Qingru Song & Jun Pei & Shanlin Yang & Panos M. Pardalos, 2020. "Parallel-machine group scheduling with inclusive processing set restrictions, outsourcing option and serial-batching under the effect of step-deterioration," Journal of Global Optimization, Springer, vol. 78(4), pages 717-742, December.
    20. Dongyuan Zhan & Amy R. Ward, 2019. "Staffing, Routing, and Payment to Trade off Speed and Quality in Large Service Systems," Operations Research, INFORMS, vol. 67(6), pages 1738-1751, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:213:y:2011:i:3:p:489-497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.