Using integrated simulation-optimisation to optimise staffing decisions in a service supply chain

Stanislaus Solomon, Gertrude P. Pannirselvam and Haitao Li

International Journal of Integrated Supply Management, 2022, vol. 15, issue 1, 1-26

Abstract: The purpose of this research is to address the problem of staffing skilled personnel in a service setting where personnel are drawn from an outsourcing firm and where uncertainty in resource availability is explicitly considered. To achieve this objective, we design and implement a new simulation-optimisation algorithm by combining a scatter search metaheuristic with Monte Carlo simulation. Through a real-life case study and a comprehensive computational experiment, this paper shows that the solution quality provided by our simulation-optimisation framework is superior to the deterministic solution based on point estimates. The framework explicitly addresses uncertainty results in a staff sourcing strategy that is robust and less prone to be impacted by changes in resource availability. Effective implementation of such a framework in outsourcing context requires well-coordinated information sharing and integrated decision-making between the supply chain partners.

Keywords: personnel outsourcing; service supply chain; resource allocation; staffing; simulation-optimisation; Monte Carlo simulation; metaheuristics; scatter search. (search for similar items in EconPapers)
Date: 2022
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