Joint production and subcontracting planning of unreliable multi-facility multi-product production systems

M. Assid, A. Gharbi and K. Dhouib

Omega, 2015, vol. 50, issue C, 54-69

Abstract: This article addresses the problem of joint optimization of production and subcontracting of unreliable production systems. The production system considered presents a common problem in the pharmaceutical industry. It is composed of multiple production facilities with different capacities, each of which is capable of producing two different classes of medications (brand name and generic). The resort to subcontracting is double: first, it involves the quantity of products received on a regular basis in order to compensate for insufficient production capacity in existing facilities, second, when needed, urgent orders are also launched in order to reduce the risk of shortages caused by breakdowns of manufacturing facilities. Failures, repairs and urgent delivery times may be represented by any probability distributions.

Keywords: Production/subcontracting control; Pharmaceutical industry; Service level; Simulation modeling; Optimization; Response surface methodology (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.omega.2014.07.007

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