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Coordinated scheduling of the outsourcing, in-house production and distribution operations

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  • Zhong, Xueling
  • Fan, Jie
  • Ou, Jinwen

Abstract

In this paper we study coordinated scheduling of the outsourcing, in-house production and distribution operations. In our integrated scheduling model, each job is either outsourced by paying a cost, or processed by one of the in-house machines. Processed jobs are delivered in batches by vehicles with identical capacities, where each job has a non-identical physical size. The objective is to determine the subsets of jobs to be outsourced and a joint production and delivery schedule for the rest of the jobs that are processed in-house, so that the makespan of the jobs processed in-house plus the total cost of outsourcing and delivery is minimized. The proposed scheduling problem is strongly NP-hard. We formulate the scheduling problem into a neat mixed integer programming (MIP) and present an efficient 2-approximation algorithm. We also develop a sophisticated (32+ϵ)-approximation algorithm, where ϵ∈(0,1) can be any small constant. The performance of the proposed algorithms is evaluated through numerical experiments.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ejores:v:302:y:2022:i:2:p:427-437
    DOI: 10.1016/j.ejor.2022.01.003
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    References listed on IDEAS

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    Cited by:

    1. Li, Feng & Xu, Shifu & Xu, Zhou, 2023. "New exact and approximation algorithms for integrated production and transportation scheduling with committed delivery due dates and order acceptance," European Journal of Operational Research, Elsevier, vol. 306(1), pages 127-140.
    2. Ou, Jinwen & Lu, Lingfa & Zhong, Xueling, 2023. "Parallel-batch scheduling with rejection: Structural properties and approximation algorithms," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1017-1032.
    3. Deng, Sijing & Xu, Jiayan, 2023. "Manufacturing and procurement outsourcing strategies of competing original equipment manufacturers," European Journal of Operational Research, Elsevier, vol. 308(2), pages 884-896.

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