Subcontracting with availability guarantees: Production control and capacity decisions

IIE Transactions (Institute of Industrial Engineers)

Volumn 36, Issue 8, 2004, Pages 711-724

  Tan, Bariş ^a  

^a KOÇ UNIVERSITY   (Turkey)

Author keywords

[No Author keywords available]

Indexed keywords

AVAILABILITY; DECISION THEORY; MARKOV PROCESSES; MATHEMATICAL MODELS; NUMERICAL ANALYSIS; OUTSOURCING; PROBABILITY;

CAPACITY DECISIONS; DEMAND VARIABILITY; LONG TERM AVAILABILITY; PRICING DECISIONS; SUBCONTRACTING;

PRODUCTION CONTROL;

EID: 3242685160     PISSN: 0740817X     EISSN: None     Source Type: Journal    
DOI: 10.1080/07408170490458463     Document Type: Article

References (26)

1. Abernathy, F.H., Dunlop, J.T., Hammond, J.H. and Weil, D. (1999) A Stitch in Time: Lean Retailing and the Transformation of Manufacturing-Lessons from the Apparel and Textile Industries, Oxford University Press, New York, NY.
2. Abernathy, F.H., Dunlop, J.T., Hammond, J.H. and Weil, D. (2000) Control your inventory in a word of lean retaling. Harvard Business Review, November-December, 169-176.
3. Atamturk, A. and Hochbaum, D.S. (2001) Capacity acquisition, subcontracting, and lot sizing. Management Science, 47, 1081-1100.
4. Bertrand, J.W. and Sridharan, V. (2001) A study of simple rules for subcontracting in make-to-order manufacturing. European Journal of Operational Research, 128, 509-531.
5. Bielecki, T. and Kumar, P.R. (1988) Optimality of zero-inventory policies for unreliable manufacturing systems. Operations Research, 36(4), 532-541.
6. Bradley, J. (2002a) Optimal stationary control of a dual service rate M/M/1 production-inventory model. Unpublished manuscript (available from http://www.johnson.cornell.edu/faculty/profiles/Bradley/).
7. Bradley, J. (2002b) A Brownian approximation of a production-inventory system with a manufacturer that subcontracts. Unpublished manuscript (available from http://www.johnson.cornell.edu/faculty/profiles/Bradley/).
8. Bradley, J. and Glynn, P. (2002) Managing capacity and inventory jointly in manufacturing systems. Management Science, 48, 273-288.
9. Cachon, G.P. and Harker, P.T. (2002) Competition and outsourcing with scale economies. Management Science, 48(10), 1314-1333.
10. De Kok, T.G. (2000) Capacity allocation and outsourcing in a process industry. International Journal of Production Economics, 68, 229-239.
11. Fleming, W., Sethi, S. and Soner, H. (1987) An optimal stochastic production planning with randomly fluctuating demand. SIAM Journal of Control Optimization, 25, 1495-1502.
12. Gaimon, C. (1994) Subcontracting versus capacity expansion and the impact on pricing of services. Naval Research Logistics, 41(7), 875-892.
13. Gershwin, S.B. (1994) Manufacturing Systems Engineering, Prentice-Hall.
14. Gutierrez, G. and Paul, A. (2000) Analysis of the effects of uncertainty, risk-pooling, and subcontracting mechanisms on project performance. Operations Research, 48(6), 927-938.
15. Hu, J. (1995) Production rate control for failure prone production with no backlog permitted. IEEE Transactions on Automatic Control, 40(2), 291-295.
16. Huang, L., Hu, J. and Vakili, P. (1996) Optimal control of a failure prone manufacturing system with the possibility of temporary increase in production capacity, in Recent Advances in Control and Optimization of Manufacturing Systems,Yin, G. and Zhang, Q. (eds.) Springer-Verlag, pp. 31-60.
17. Kimemia, J.G. and Gershwin, S.B. (1983) An algorithm for the computer control of production in a flexible manufacturing systems. IIE Transaction, 15(4), 353-362.
18. Kouvelis, P. and Milner, J.M. (2002) Supply chain capacity and outsourcing: the dynamic interplay of demand and supply uncertainty. IIE Transactions, 34, 717-728.
19. Krichagina, E.V., Lou, S.X.C. and Taksar, M.I. (1994) Double band policy for stochastic manufacturing systems in heavy traffic. Mathematics of Operations Research, 19(3), 560-597.
20. Olsder, G.J. and Suri, R. (1980) Time-optimal control of flexible manufacturing systems with failure prone machines, in Proceedings of the 19th IEEE Conference on Decision and Control, IEEE, Piscataway, NJ.
21. Perkins, J. and Srikan, R. (2001) Failure-prone production systems with uncertain demand. IEEE Transactions on Automatic Control, 46, 441-449.
22. Tan, B. (1997) Variance of the throughput of an N-station production line with no intermediate buffers and time dependent failures. European Journal of Opeational Research, 101(3), 560-576.
23. Tan, B. (2002a) Production control of a pull system with production and demand uncertainty. IEEE Transactions on Automatic Control, 47(5), 779-783.
24. Tan, B. (2002b) Managing manufacturing risks by using capacity options. Journal of the Operations Research Society, 53(2), 232-242.
25. Tab, B. and Gershwin, S.B. (2004) Production and subcontracting strategies for manufacturers with limited capacity and volatile demand. Annals of Operations Research, 125, 205-232.
26. Van Mieghem, J.A. (1999) Coordinating investment, production, and subcontracting. Management Science, 45(7), 954-971.