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Sequencing Strategies and Coordination Issues in Outsourcing and Subcontracting Operations

In: Planning Production and Inventories in the Extended Enterprise

Author

Listed:
  • Tolga Aydinliyim

    (1208 University of Oregon)

  • George L. Vairaktarakis

Abstract

Managing the supply chain has recently been the most significant task for manufacturing companies toward cost efficiency and customer satisfaction. Globalization not only increased the size of supply chains, but also created an environment where competing suppliers, manufacturers, and distributors need to cooperate. Even when firms own a significant portion of their supply chain, multiple parties with different performance measures and goals are involved in the decision-making processes. Examples from the automotive industry include General Motors, Ford Motor Company and others. Each division in such organizations tries to reach optimal plans for the portion of the overall system under its authority. However, the extent to which the individual goals are achieved depends on the decisions made by other parties involved in supply chains. Therefore, the quality of the strategic decisions made by such decision makers depends on the amount of information they have regarding other members of the supply chain. The more information is shared among the decision makers, the greater the resulting coordination benefits.

Suggested Citation

  • Tolga Aydinliyim & George L. Vairaktarakis, 2011. "Sequencing Strategies and Coordination Issues in Outsourcing and Subcontracting Operations," International Series in Operations Research & Management Science, in: Karl G. Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 269-319, Springer.
    • Handle: RePEc:spr:isochp:978-1-4419-6485-4_12
    DOI: 10.1007/978-1-4419-6485-4_12
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    Cited by:

    1. Liu, Zhixin & Lu, Liang & Qi, Xiangtong, 2018. "Cost allocation in rescheduling with machine unavailable period," European Journal of Operational Research, Elsevier, vol. 266(1), pages 16-28.
    2. Agnetis, Alessandro & Aloulou, Mohamed Ali & Fu, Liang-Liang, 2016. "Production and interplant batch delivery scheduling: Dominance and cooperation," International Journal of Production Economics, Elsevier, vol. 182(C), pages 38-49.

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