Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/1846
| Title: | Scheduling with subcontracting options | Authors: | Chen, ZL Li, CL |
Issue Date: | Dec-2008 | Source: | IIE transactions, Dec. 2008, v. 40, no. 12, p. 1171-1184 | Abstract: | Motivated by a problem commonly faced by time-sensitive product manufacturers, an analytical model to study the joint decisions of subcontracting and detailed job scheduling is proposed. In the proposed model, a manufacturer operates in a make-to-order fashion and receives a set of orders from its customers at the beginning of the planning horizon. The orders can be either processed by the manufacturer in-house or subcontracted to one of several available subcontractors, possibly at a higher cost. The manufacturer needs to determine which orders should be produced in-house and which orders should be subcontracted. Furthermore, it needs to determine a production schedule for the orders to be produced in-house. The objective is to minimize the total production and subcontracting cost, subject to a constraint on the maximum completion time of the orders. We analyze the computational complexity of the model, develop a heuristic for solving it and analyze worst-case and asymptotic performances of the heuristic. We also study the value of subcontracting by comparing our model and a model where no subcontracting option is available to the manufacturer. Computational results demonstrate that the subcontracting option gives the manufacturer a significant performance improvement. Related managerial insights are also provided. | Keywords: | Scheduling Subcontracting Computational complexity Worst-case analysis Asymptotic analysis |
Publisher: | Taylor & Francis | Journal: | IIE transactions | ISSN: | 0740-817X | EISSN: | 1545-8830 | DOI: | 10.1080/07408170801975057 | Rights: | © 2008 “IIE”. This is an electronic version of an article published in Z.-L. Chen and C.-L. Li (2008), IIE Transactions, 40(12), 1171-1184. IIE Transactions is available online at: http://www.informaworld.com, the open URL of the article: http://www.informaworld.com/openurl?genre=article&issn=0740-817X&volume=40&issue=12&spage=1171. |
| Appears in Collections: | Journal/Magazine Article |
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| 58 Final-Version.pdf | Pre-published version | 252.58 kB | Adobe PDF | View/Open |
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