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Make-or-Buy and Supplier Selection Problems in Make-to-Order Supply Chains

In: Handbook on Project Management and Scheduling Vol. 2

Author

Listed:
  • Haitao Li

    (University of Missouri)

Abstract

Time- and cost-effective management of a make-to-order (MTO) supply chain often requires sourcing decisions, such as make-or-buy and supplier selection, to be jointly made with scheduling of supply chain operations. In this chapter, we introduce an RCPSP-based modeling framework to exploit the synergies and interactions between sourcing and scheduling decisions in MTO supply chains under explicit resource constraints. A mixed-integer nonlinear program (MINLP) is formulated to minimize the system wide total supply chain cost. We also present a numerical example to demonstrate the scope and depth of decision-support offered by the model for purchasing and program managers.

Suggested Citation

  • Haitao Li, 2015. "Make-or-Buy and Supplier Selection Problems in Make-to-Order Supply Chains," International Handbooks on Information Systems, in: Christoph Schwindt & Jürgen Zimmermann (ed.), Handbook on Project Management and Scheduling Vol. 2, edition 127, chapter 0, pages 1227-1248, Springer.
    • Handle: RePEc:spr:ihichp:978-3-319-05915-0_25
    DOI: 10.1007/978-3-319-05915-0_25
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    Cited by:

    1. Zhou, Rui & Bhuiyan, Tanveer Hossain & Medal, Hugh R. & Sherwin, Michael D. & Yang, Dong, 2022. "A stochastic programming model with endogenous uncertainty for selecting supplier development programs to proactively mitigate supplier risk," Omega, Elsevier, vol. 107(C).

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