Outsourcing and production scheduling for a two-stage flow shop

In this paper we study the production scheduling problem for a two-stage flow shop in which there are options of outsourcing some operations to subcontractors. The basic objective is to look for a production schedule that can optimally utilize the resources of both the in-house production and outsourcing so that the makespan is minimized. The logistics issue between the subcontractor and the in-house shop further complicates the problem. We present models for different situations of outsourcing. For each model, we develop optimization algorithms and conduct computational experiments to study the managerial insights for the models and the algorithms.

[1]  Chris N. Potts,et al.  Supply chain scheduling: Batching and delivery , 2003, Oper. Res..

[2]  T.C.E. Cheng,et al.  Logistics scheduling to minimize inventory and transport costs , 2009 .

[3]  Chung-Lun Li,et al.  Machine scheduling with deliveries to multiple customer locations , 2005, Eur. J. Oper. Res..

[4]  Chung-Yee Lee,et al.  Machine scheduling with job delivery coordination , 2004, Eur. J. Oper. Res..

[5]  T. C. Edwin Cheng,et al.  Single Supplier Scheduling for Multiple Deliveries , 2001, Ann. Oper. Res..

[6]  Ik Sun Lee,et al.  Single machine scheduling with outsourcing allowed , 2008 .

[7]  Chiung Moon,et al.  Advanced planning and scheduling with outsourcing in manufacturing supply chain , 2002 .

[8]  Jian Yang,et al.  A Production-Inventory System with Markovian Capacity and Outsourcing Option , 2005, Oper. Res..

[9]  Xiangtong Qi,et al.  Coordinated Logistics Scheduling for In-House Production and Outsourcing , 2008, IEEE Transactions on Automation Science and Engineering.

[10]  Joseph Y.-T. Leung,et al.  Two Machine Scheduling under Disruptions with Transportation Considerations , 2006, J. Sched..

[11]  Chris N. Potts,et al.  The Coordination of Scheduling and Batch Deliveries , 2005, Ann. Oper. Res..

[12]  George L. Vairaktarakis,et al.  Coordination of Outsourced Operations to Minimize Weighted Flow Time and Capacity Booking Costs , 2009, Manuf. Serv. Oper. Manag..

[13]  Alper Atamtürk,et al.  Capacity Acquisition, Subcontracting, and Lot Sizing , 2001, Manag. Sci..

[14]  Milind Dawande,et al.  Supply Chain Scheduling: Distribution Systems , 2006 .

[15]  George L. Vairaktarakis,et al.  Integrated Scheduling of Production and Distribution Operations , 2005, Manag. Sci..

[16]  Alessandro Agnetis,et al.  Supply chain scheduling: Sequence coordination , 2006, Discret. Appl. Math..

[17]  George L. Vairaktarakis,et al.  Minimizing makespan in hybrid flowshops , 1994, Oper. Res. Lett..

[18]  T. C. Edwin Cheng,et al.  Complexity Results for Flow-Shop and Open-Shop Scheduling Problems with Transportation Delays , 2004, Ann. Oper. Res..

[19]  Zhi-Long Chen,et al.  Machine scheduling with transportation considerations , 2001 .

[20]  Hua Xuan,et al.  A new Lagrangian relaxation algorithm for hybrid flowshop scheduling to minimize total weighted completion time , 2006, Comput. Oper. Res..

[21]  Chung-Lun Li,et al.  Lot streaming with supplier–manufacturer coordination , 2004 .

[22]  Xiangtong Qi,et al.  A logistics scheduling model: scheduling and transshipment for two processing centers , 2006 .

[23]  George L. Vairaktarakis,et al.  The use of flowlines to simplify routing complexity in two-stage flowshops , 2000 .

[24]  Robert M. Fuhrer,et al.  Coordinating Investment, Production, and Subcontracting , 1999 .

[25]  Christos Koulamas,et al.  A note on makespan minimization in two-stage flexible flow shops with uniform machines , 2006, Eur. J. Oper. Res..

[26]  Ceyda Oguz,et al.  A Genetic Algorithm for Hybrid Flow-shop Scheduling with Multiprocessor Tasks , 2005, J. Sched..

[27]  Michael Pinedo,et al.  Planning and Scheduling in Supply Chains: An Overview of Issues in Practice , 2004 .

[28]  Xiangtong Qi.  A logistics scheduling model: Inventory cost reduction by batching , 2005 .

[29]  Ik Sun Lee,et al.  Minimizing due date related measures for a single machine scheduling problem with outsourcing allowed , 2008, Eur. J. Oper. Res..

[30]  Zhi-Long Chen,et al.  Order Assignment and Scheduling in a Supply Chain , 2006, Oper. Res..

[31]  James R. Bradley.  A Brownian Approximation of a Production-Inventory System with a Manufacturer That Subcontracts , 2004, Oper. Res..

[32]  Xiangtong Qi.  Two-stage production scheduling with an option of outsourcing from a remote supplier , 2009 .

[33]  P. S. Sundararaghavan,et al.  Minimizing makespan in parallel flowshops , 1997 .

[34]  Jinwoo Park,et al.  A new approach to job shop scheduling problems with due date constraints considering operation subcontracts , 2005 .

[35]  George L. Vairaktarakis,et al.  Optimization of processing and delivery decisions involving third-party machines , 2005 .

[36]  Zhi-Long Chen,et al.  Scheduling with subcontracting options , 2008 .

[37]  Chung Yee Lee,et al.  Production and transport logistics scheduling with two transport mode choices , 2005 .