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Supply chain scheduling to minimize holding costs with outsourcing

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  • Esaignani Selvarajah
  • Rui Zhang

Abstract

This paper addresses a scheduling problem in a flexible supply chain, in which the jobs can be either processed in house, or outsourced to a third-party supplier. The goal is to minimize the sum of holding and delivery costs. This problem is proved to be strongly $\mathcal{NP}$ -hard. Consider two special cases, in which the jobs have identical processing times. For the problem with limited outsourcing budgets, a $\mathcal{NP}$ -hardness proof, a pseudo-polynomial algorithm and a fully polynomial time approximation scheme are presented. For the problem with unlimited outsourcing budgets, the problem is shown to be equivalent to the shortest path problem, and therefore it is in class $\mathcal{P}$ . This shortest-path-problem solution approach is further shown to be applicable to a similar but more applicable problem, in which the number of deliveries is upper bounded. Copyright Springer Science+Business Media New York 2014

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  • Esaignani Selvarajah & Rui Zhang, 2014. "Supply chain scheduling to minimize holding costs with outsourcing," Annals of Operations Research, Springer, vol. 217(1), pages 479-490, June.
    • Handle: RePEc:spr:annopr:v:217:y:2014:i:1:p:479-490:10.1007/s10479-013-1522-1
    DOI: 10.1007/s10479-013-1522-1
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    References listed on IDEAS

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    1. Zhi-Long Chen & George L. Vairaktarakis, 2005. "Integrated Scheduling of Production and Distribution Operations," Management Science, INFORMS, vol. 51(4), pages 614-628, April.
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    6. Esaignani Selvarajah & George Steiner, 2009. "Approximation Algorithms for the Supplier's Supply Chain Scheduling Problem to Minimize Delivery and Inventory Holding Costs," Operations Research, INFORMS, vol. 57(2), pages 426-438, April.
    7. Zhi-Long Chen, 2010. "Integrated Production and Outbound Distribution Scheduling: Review and Extensions," Operations Research, INFORMS, vol. 58(1), pages 130-148, February.
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    Cited by:

    1. Yunqiang Yin & Doudou Li & Dujuan Wang & T. C. E. Cheng, 2021. "Single-machine serial-batch delivery scheduling with two competing agents and due date assignment," Annals of Operations Research, Springer, vol. 298(1), pages 497-523, March.
    2. Long Zhang & Yuzhong Zhang & Qingguo Bai, 0. "An approximation algorithm for a supply-chain scheduling problem with an assignable common due window and holding time," Journal of Combinatorial Optimization, Springer, vol. 0, pages 1-13.
    3. Shang-Chia Liu & Chin-Chia Wu, 2016. "A Faster FPTAS for a Supply Chain Scheduling Problem to Minimize Holding Costs with Outsourcing," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(05), pages 1-11, October.
    4. Long Zhang & Yuzhong Zhang & Qingguo Bai, 2022. "An approximation algorithm for a supply-chain scheduling problem with an assignable common due window and holding time," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2167-2179, November.

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