Capacity planning with outsourcing opportunities under reliability and maintenance constraints

Mohammed Haoues, Mohammed Dahane and Kinza Nadia Mouss

International Journal of Industrial and Systems Engineering, 2021, vol. 37, issue 3, 382-409

Abstract: This paper investigates capacity planning with outsourcing under reliability-maintenance constraints. The considered supply-chain consists of a single-manufacturer and multiple-subcontractors. The manufacturer's company is composed of a single unit subject to random failures. Corrective maintenance is endorsed when failures occur, and preventive maintenance can be carried out to reduce the degradation. The high in-house costs and the incapacity motivate the manufacturer outsourcing to independent subcontractors. In addition, based on the principle of comparative advantage, the manufacturer balances between in-house capacities and outsourcing services, which minimises the total cost. The aim is to propose a new policy based on the combination between integrated-maintenance and outsourcing policies. A mathematical model and an optimisation procedure have been developed in order to determine the best in-house production-maintenance and outsourcing plans for the manufacturer while minimising the total cost. In order to show the applicability of our approach, we conduct experimentations to study the management insights.

Keywords: capacity planning; in-house capacity; integrated maintenance; outsourcing; genetic algorithms. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=113470 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:37:y:2021:i:3:p:382-409

Access Statistics for this article

More articles in International Journal of Industrial and Systems Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().