The Supplying Chain Scheduling with the Cost Constraint and Subcontracting

We propose an analytical scheduling model with subcontracting. Each job can be processed either on a single machine at a manufacturer or outsourced to a subcontractor, possibly at a higher cost. For a given set of jobs, the decisions the manufacturer needs to make include the selection of a subset of jobs to be outsourced and the schedule of all the jobs. The objective functions are to minimize the commonly used scheduling measures, subject to a constraint on the total production and subcontracting cost. We show the NP-hardiness for the problems with different objective functions and develop dynamic programming algorithms for solving them

Single-site strategic capacity planning considering renewal, maintenance, inventory, taxes and cash flow management

This paper deals with strategic capacity planning of a single-site manufacturing system. We propose a MILP model that includes relevant business aspects and possibilities, some of which are only partially or not at all found in the literature. Specifically, we consider decisions on expansion, reduction and renewal of production capacity, and acquisition of storage capacity. In addition, we model aspects such as (a) maintenance costs and unit variable costs depending, respectively, on age and characteristics of facilities, (b) seasonality of the demand and (c) cash flow management, including taxes and, therefore, depreciation of assets. The model maximises the after-tax cash balance at the end of the planning horizon. We also present a computational experiment with 54 instances to show that the model can be solved for a wide range of sizes in a reasonable computing time using comercial software.Peer ReviewedPostprint (author's final draft

AN ONLINE INVENTORY SYSTEM FOR IT FACILITATING COMPANIES

The purpose of developing an Online Inventory system for IT Facilitating Companies is to accommodate the facilitating companies with their inventory and to allow the staff members of the company or other growing companies which are in need of basic tools to built up a successful business; to easily take certain inventory items on loan with a simple interface provided for user with the notified (email) system; which can enable both administrator and user to handle requests. The problems that were analyzed are such that manual records keeping leads to misplacing the important documentation, slow processing of request for the items to be on loan, the user is not able have details of their own booking request neither the history of request submitted etc., However, the objective of this project to provide an interface for users to process their requesting of items to be on loan for certain events and manage the request etc., and for administrator to manage and handle the inventory items, accounts, notify users, requests and their status. The methodology used for this project is Incremental, which has the frame work of both combinations linear and iterative; therefore, it is ideal for the project. To conclude, the system is implemented successfully

An integrated approach to inventory and flexible capacity management subject to fixed costs and non-stationary stochastic demand

In a manufacturing system with flexible capacity, inventory management can be coupled with capacity management in order to handle fluctuations in demand more effectively. Typical examples include the effective use of temporary workforce and overtime production. In this paper, we discuss an integrated model for inventory and flexible capacity management under non-stationary stochastic demand with the possibility of positive fixed costs, both for initiating production and for using contingent capacity. We analyze the characteristics of the optimal policies for the integrated problem. We also evaluate the value of utilizing flexible capacity under different settings, which enable us to develop managerial insights. © 2008 The Author(s)

Integrated workforce capacity and inventory management under temporary labor supply uncertainty

In a manufacturing environment with volatile demand, inventory management can be coupled with dynamic capacity adjustments for handling the fluctuations more effectively. In this study, we consider the problem of integrated capacity and inventory management under non-stationary stochastic demand and flexible capacity uncertainty. The capacity planning problem is investigated from the workforce planning perspective where the capacity can be temporarily increased by utilizing contingent workers from an external labor supply agency. The contingent capacity received from the agency is subject to an uncertainty, but the supply of a certain number of workers can be guaranteed through contracts. We formulate a dynamic programming model to make the optimal capacity decisions at a tactical level (permanent workforce size and contracted number of workers) as well as the operational level (number of workers to be requested from the external labor supply agency in each period), integrated with the optimal operational decision of how much to produce in each period. We analyze the characteristics of the optimal policies and we conduct an extensive numerical analysis that helps us provide several managerial insights

Integrated workforce capacity and inventory management under temporary labor supply uncertainty

In a manufacturing environment with volatile demand, inventory management can be coupled with dynamic capacity adjustments for handling the fluctuations more effectively. In this study, we consider the problem of integrated capacity and inventory management under non-stationary stochastic demand and flexible capacity uncertainty. The capacity planning problem is investigated from the workforce planning perspective where the capacity can be temporarily increased by utilizing contingent workers from an external labor supply agency. The contingent capacity received from the agency is subject to an uncertainty, but the supply of a certain number of workers can be guaranteed through contracts. We formulate a dynamic programming model to make the optimal capacity decisions at a tactical level (permanent workforce size and contracted number of workers) as well as the operational level (number of workers to be requested from the external labor supply agency in each period), integrated with the optimal operational decision of how much to produce in each period. We analyze the characteristics of the optimal policies and we conduct an extensive numerical analysis that helps us provide several managerial insights

Integrated Workforce Capacity and Inventory Management Under Labour Supply Uncertainty

In a manufacturing environment with volatile demand, inventory management can be coupled with dynamic capacity adjustments for handling the fluctuations more effectively. In this study, we consider the problem of integrated capacity and inventory management under non-stationary stochastic demand and capacity uncertainty. The capacity planning problem is investigated from the workforce planning perspective where the capacity can be temporarily increased by utilising contingent workers from an external labour supply agency. The contingent capacity received from the agency is subject to an uncertainty, but the supply of a certain number of workers can be guaranteed through contracts. There may also be uncertainty in the availability of the permanent and contracted workers due to factors such as absenteeism and fatigue. We formulate a dynamic programming model to make the optimal capacity decisions at a tactical level (permanent workforce size and contracted number of workers) as well as the operational level (number of workers to be requested from the external labour supply agency in each period), integrated with the optimal operational decision of how much to produce in each period. We analyse the characteristics of the optimal policies and we conduct an extensive numerical analysis that helps us provide several managerial insights

Transaction Costs and Outsourcing Decisions in Small and Medium-Sized Family Firms

An important difference between family and nonfamily firms, and among different types of family firms, is in the way they make outsourcing decisions and thereby define the boundaries of the firm. The authors propose that transaction costs arising from human asset specificity, threats of opportunism, and risk aversion will make small- and medium-sized family firms operating with technologies of low to medium complexity less likely to outsource than comparable nonfamily firms. The authors also argue that the limiting influence of transaction costs on the outsourcing decisions of family firms may be mitigated by variations in available suppliers, goals, and ownership structures