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Using integrated simulation-optimisation to optimise staffing decisions in a service supply chain

Author

Listed:
  • Stanislaus Solomon
  • Gertrude P. Pannirselvam
  • Haitao Li

Abstract

The purpose of this research is to address the problem of staffing skilled personnel in a service setting where personnel are drawn from an outsourcing firm and where uncertainty in resource availability is explicitly considered. To achieve this objective, we design and implement a new simulation-optimisation algorithm by combining a scatter search metaheuristic with Monte Carlo simulation. Through a real-life case study and a comprehensive computational experiment, this paper shows that the solution quality provided by our simulation-optimisation framework is superior to the deterministic solution based on point estimates. The framework explicitly addresses uncertainty results in a staff sourcing strategy that is robust and less prone to be impacted by changes in resource availability. Effective implementation of such a framework in outsourcing context requires well-coordinated information sharing and integrated decision-making between the supply chain partners.

Suggested Citation

  • Stanislaus Solomon & Gertrude P. Pannirselvam & Haitao Li, 2022. "Using integrated simulation-optimisation to optimise staffing decisions in a service supply chain," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 15(1), pages 1-26.
    • Handle: RePEc:ids:ijisma:v:15:y:2022:i:1:p:1-26
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