Make-or-Buy and Supplier Selection Problems in Make-to-Order Supply Chains

Haitao Li ()
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Haitao Li: University of Missouri

Chapter Chapter 55 in Handbook on Project Management and Scheduling Vol. 2, 2015, pp 1227-1248 from Springer

Abstract: Abstract Time- and cost-effective management of a make-to-order (MTO) supply chain often requires sourcing decisions, such as make-or-buy and supplier selection, to be jointly made with scheduling of supply chain operations. In this chapter, we introduce an RCPSP-based modeling framework to exploit the synergies and interactions between sourcing and scheduling decisions in MTO supply chains under explicit resource constraints. A mixed-integer nonlinear program (MINLP) is formulated to minimize the system wide total supply chain cost. We also present a numerical example to demonstrate the scope and depth of decision-support offered by the model for purchasing and program managers.

Keywords: Make-or-buy; Make-to-order; Project scheduling; Resource constraints; Supplier selection; Supply chain configuration (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-05915-0_25

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