Optimisation of production and subcontracting strategies

Sinha, Ashesh Kumar; Davich, Thomas; Krishnamurthy, Ananth

doi:10.1080/00207543.2015.1077285

Cited by 5 publications

(1 citation statement)

References 21 publications

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“…Another related work, Sinha et al. (2016) analyzes supply chain with multiple products using a heuristic approach that uses a combination of (i) mathematical programming to optimize outsourcing decisions and (ii) queuing network models to quantify the operational impact to outsourcing decisions. While in the supply chain settings, many have some similarities to this research.…”

Section: Literature Reviewmentioning

confidence: 99%

Production and Capacity Utilization Strategies in Supply Chains for Complex Engineered Products

Sinha

Krishnamurthy

2020

Production and Operations Management

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We analyze production and capacity utilization strategies in a supply chain where individual components can be made either at a shared in‐house manufacturing facility or at dedicated facilities of external subcontractors. The manufacturer and the subcontractor differ in terms of costs, production capacities, rates, and service level capabilities. Using Markov decision process models, we determine the optimal policy and characterize its structure. We derive the set of conditions that partitions the state space into regions and characterize optimal policies in each region. We derive optimal policies for manufacturer and subcontractors under different settings and show that the optimal policy has a multi‐index structure in some settings.

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Section: Literature Reviewmentioning

confidence: 99%