The Use of Computer Simulation in the Management of Subcontractors and Outsourced Services

Abstract

Abstract. The paper examines cooperation among production companies to fulfill orders beyond plant capacity by selecting subcontractors. The developed model focuses on planning the production process to minimize total production costs by deciding where to produce goods before they are actually produced. The concept utilized a 3D FlexSim simulation environment, specifically the built-in optimization module OptQuest, to address the problem. The paper covers the key steps in creating the simulation model and presents the simulation results.