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Outsourcing and production scheduling for a two-stage flow shop

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  • Qi, Xiangtong

Abstract

In this paper we study the production scheduling problem for a two-stage flow shop in which there are options of outsourcing some operations to subcontractors. The basic objective is to look for a production schedule that can optimally utilize the resources of both the in-house production and outsourcing so that the makespan is minimized. The logistics issue between the subcontractor and the in-house shop further complicates the problem. We present models for different situations of outsourcing. For each model, we develop optimization algorithms and conduct computational experiments to study the managerial insights for the models and the algorithms.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:43-50
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.
    3. Li, Gang & Wang, Xiao-Yuan & Wang, Ji-Bo & Sun, Lin-Yan, 2013. "Worst case analysis of flow shop scheduling problems with a time-dependent learning effect," International Journal of Production Economics, Elsevier, vol. 142(1), pages 98-104.
    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. 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.
    6. 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.
    7. 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.
    8. Yeung, Wing-Kwan & Choi, Tsan-Ming & Cheng, T.C.E., 2011. "Supply chain scheduling and coordination with dual delivery modes and inventory storage cost," International Journal of Production Economics, Elsevier, vol. 132(2), pages 223-229, August.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.

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