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Joint production and subcontracting planning of unreliable multi-facility multi-product production systems

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  • Assid, M.
  • Gharbi, A.
  • Dhouib, K.

Abstract

This article addresses the problem of joint optimization of production and subcontracting of unreliable production systems. The production system considered presents a common problem in the pharmaceutical industry. It is composed of multiple production facilities with different capacities, each of which is capable of producing two different classes of medications (brand name and generic). The resort to subcontracting is double: first, it involves the quantity of products received on a regular basis in order to compensate for insufficient production capacity in existing facilities, second, when needed, urgent orders are also launched in order to reduce the risk of shortages caused by breakdowns of manufacturing facilities. Failures, repairs and urgent delivery times may be represented by any probability distributions.

Suggested Citation

  • Assid, M. & Gharbi, A. & Dhouib, K., 2015. "Joint production and subcontracting planning of unreliable multi-facility multi-product production systems," Omega, Elsevier, vol. 50(C), pages 54-69.
  • Handle: RePEc:eee:jomega:v:50:y:2015:i:c:p:54-69
    DOI: 10.1016/j.omega.2014.07.007
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    References listed on IDEAS

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    1. Jeang, Angus, 2012. "Simultaneous determination of production lot size and process parameters under process deterioration and process breakdown," Omega, Elsevier, vol. 40(6), pages 774-781.
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    10. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
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    Cited by:

    1. Donadelli, Michael & Kizys, Renatas & Riedel, Max, 2016. "Globally dangerous diseases: Bad news for Main Street, good news for Wall Street?," SAFE Working Paper Series 158, Leibniz Institute for Financial Research SAFE.
    2. Faghih-Roohi, Shahrzad & Akcay, Alp & Zhang, Yingqian & Shekarian, Ehsan & de Jong, Eelco, 2020. "A group risk assessment approach for the selection of pharmaceutical product shipping lanes," International Journal of Production Economics, Elsevier, vol. 229(C).
    3. Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean-Pierre & Montaño-Arango, Oscar & Hernandez-Gress, Eva Selene, 2016. "Production control problem integrating overhaul and subcontracting strategies for a quality deteriorating manufacturing system," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 134-150.
    4. Rivera-Gómez, Héctor & Gharbi, Ali & Kenné, Jean-Pierre & Montaño-Arango, Oscar & Hernández-Gress, Eva Selene, 2018. "Subcontracting strategies with production and maintenance policies for a manufacturing system subject to progressive deterioration," International Journal of Production Economics, Elsevier, vol. 200(C), pages 103-118.
    5. Bouslah, B. & Gharbi, A. & Pellerin, R., 2016. "Integrated production, sampling quality control and maintenance of deteriorating production systems with AOQL constraint," Omega, Elsevier, vol. 61(C), pages 110-126.
    6. Donadelli, Michael & Kizys, Renatas & Riedel, Max, 2017. "Dangerous infectious diseases: Bad news for Main Street, good news for Wall Street?," Journal of Financial Markets, Elsevier, vol. 35(C), pages 84-103.

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