Managing partially controllable raw material acquisition and outsourcing in production planning

Document Type

Article

Publication Date

3-1-2010

Abstract

This paper studies a single-item production planning problem for a manufacturing firm. Besides being able to acquire raw material from an external supplier, the firm may also face an incoming stream of internally supplied raw material. In addition, outsourcing may serve as an alternative to in-house production for the firm to satisfy its demands. Attention is focused on the case where acquisition, production, and outsourcing costs are setup-linear and inventory holding costs are linear. For this case, polynomial algorithms are presented for some situations and the NP-hardness of other problem is shown. A computational study is used to show the competitiveness of the proposed heuristic. [Supplementary materials are available for this article. Go to the publisher's online edition of IIE Transactions for the following free supplemental resource: Appendix] © 2010 "IIE".

Identifier

77649310471 (Scopus)

Publication Title

IIE Transactions Institute of Industrial Engineers

External Full Text Location

https://doi.org/10.1080/07408170903232555

e-ISSN

15458830

ISSN

0740817X

First Page

188

Last Page

202

Issue

3

Volume

42

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