In this paper, we focus on outsourcing activities optimization problem in single period setting. In some situations, capacity planning or outsourcing is a one-time event and can be modeled as a single period problem. The aim of this research is to balance the trade-off between two echelons of a supply chain consisting of a single outsourcer and a single subcontractor. Each part is composed of a failure-prone single machine that produces one product type to satisfy market requirements. The outsourcer’s manufacturing system is not able to satisfy the demand; in this case, outsourcing is allowed to recover the lack of capacity. We consider that the subcontractor can satisfy the demands of strategic clients and rent his machine for the outsourcer under a win–win partnership contract. We assume that the hazard failure rate depends on time and the adopted manufacture rate. When unforeseen failures occur, minimal repairs are implemented. Overhaul can be performed to reduce the degradation effects. Hence, we develop a mathematical model to define a profitability interval so that both parties of supply chain can be considered as winners. We seek to determine the contract parameters that suit both parties (duration, start and end dates, the production and outsourcing rates). Then, we develop an exact algorithm to solve the problem of single period optimization, which offers a better execution time through a series of test problems. Finally, we consider a sensitivity analysis based on outsourcing parameters (cost, periodicities, etc) to analyze their effects on partial costs and individual profit of each part, as well as the total profit generated by the system.
In this paper, we study a two-echelon supply chain network consisting of multi-outsourcers and multi-subcontractors. Each one is composed of a failure-prone production unit that produces a single product to fulfil market demands with variable production rates. Sometimes the manufacturing systems are not able to satisfy demand; in this case, outsourcing option is adopted to improve the limited in-house production capacity. The outsourcing is not justified by the production lack of manufacturing systems, but is also considered for the costs minimization issues. In the considered problem, we assume that the failure rate is dependent on the time and production rate. Preventive maintenance activities can be conducted to mitigate the deterioration effects, and minimal repairs are performed when unplanned failures occurs. We consider that the production cost depends on the rate of the machine utilization. The aim of this research is to propose a joint policy based on a mixed integer programming formulation to balance the trade-off between two-echelon of supply chain. We seek to assist outsourcers to determine the integrated in-house/ outsourcing, and maintenance plans, and the subcontractors to determine the integrated production-maintenance plans so that the benefit of the supply chain is maximized over a finite planning horizon. We develop an improved optimization procedure based on the genetic algorithms, and we discuss and conduct computational experiments to study the managerial insights for the developed framework.
Purpose The purpose of this paper is to propose an integrated approach for assessing the sustainability of production and simplifying the improvement tasks in complex manufacturing processes. Design/methodology/approach The proposed approach has been investigated the integration of value stream mapping (VSM), analytic hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS). VSM is used as a basic structure for assessing and improving the sustainability of the manufacturing process. AHP is used for weighting the sustainability indicators and TOPSIS for prioritizing the operations of a manufacturing process regarding the improvement side. Findings The results carried out from this study help the managers’ staff in organizing the improvement phase in the complex manufacturing processes through computing the importance degree of each indicator and determining the most influential operations on the production. Research limitations/implications The major limitations of this paper are that one case study was considered. In addition, to an average set of sustainability indicators that have been treated. Originality/value The novelty of this research is expressed by the development of an extended VSM in complex manufacturing processes. In addition, the proposed approach contributes with a new improvement strategy through integrating the multi-criteria decision approaches with VSM method to solve the complexity of the improvement process from sustainability viewpoints.
In this paper, we focus on outsourcing activities optimization problem in single period setting. In some situations, capacity planning or outsourcing is a one-time event and can be modeled as a single period problem. The aim of this research is to balance the trade-off between two echelons of a supply chain consisting of a single outsourcer and a single subcontractor. Each part is composed of a failure-prone single machine that produces one product type to satisfy market requirements. The outsourcer’s manufacturing system is not able to satisfy the demand; in this case, outsourcing is allowed to recover the lack of capacity. We consider that the subcontractor can satisfy the demands of strategic clients and rent his machine for the outsourcer under a win–win partnership contract. We assume that the hazard failure rate depends on time and the adopted manufacture rate. When unforeseen failures occur, minimal repairs are implemented. Overhaul can be performed to reduce the degradation effects. Hence, we develop a mathematical model to define a profitability interval so that both parties of supply chain can be considered as winners. We seek to determine the contract parameters that suit both parties (duration, start and end dates, the production and outsourcing rates). Then, we develop an exact algorithm to solve the problem of single period optimization, which offers a better execution time through a series of test problems. Finally, we consider a sensitivity analysis based on outsourcing parameters (cost, periodicities, etc) to analyze their effects on partial costs and individual profit of each part, as well as the total profit generated by the system.