OPTIMIZATION OF PRODUCTION DEPTH

Tamás Bányai () and Péter Veres ()
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Tamás Bányai: University of Miskolc
Péter Veres: University of Miskolc

Advanced Logistic systems, 2013, vol. 7, issue 2, 85-94

Abstract: To meet the increasing challenges of today’s global marketplace, production and service companies need sophisticated analytical methods to define the most important factors of profit. The diversity of the needs of marketplaces and customers leaded to the increase of complexity of products. The economical production or manufacturing of complex products is a core problem of profitability of companies. Companies with complex product structures try to increase the transparency of their production processes, which leaded to the decrease of production depth. The optimization of production depth is not only a technological problem, but it also concerns the systems and processes of logistics, for example, from the point of view of make or buy problems or outsourcing questions. Within the frame of this paper authors are focusing on the optimization of production depth from the point of view outsourcing of different components of the product. We introduce a harmony search based heuristic optimization algorithm, which makes it possible to find the optimal production depth in the case of cross related product structures.

Keywords: harmony search; make-or-buy decision; optimization; optimization; outsourcing. (search for similar items in EconPapers)
Date: 2013
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