Capacity flexibility allocation in an outsourced supply chain with reservation

Boulaksil, Youssef; Grunow, Martin; Fransoo, JC Jan

doi:10.1016/j.ijpe.2010.09.010

Cited by 30 publications

(9 citation statements)

References 18 publications

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“…Finally, the analysis suggests two specialization clusters: The SC planning cluster (13.97%) includes research that develops mathematical models to help the decision-making process of MSCF management. Papers in this cluster focus on capacity planning (Zhang and Tseng 2009;Chou et al 2011;Negahban et al 2014) or supplier selection and the optimal order allocation (Boulaksil et al 2011), using multiple criteria models including the analytic hierarchy or network process, genetic algorithm or fuzzy set theory. The SC purchasing practices cluster (5.85%) comprises studies explaining the role of supply management practices on creating MSCF.…”

Section: Capability Cluster (1306%mentioning

confidence: 99%

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

Pérez-Pérez

Kocabasoglu‐Hillmer

Bedia

et al. 2019

Glob J Flex Syst Manag

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Section: Capability Cluster (1306%mentioning

confidence: 99%

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

Pérez-Pérez

Kocabasoglu‐Hillmer

Bedia

et al. 2019

Glob J Flex Syst Manag

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“…They use a concept of limited capacity flexibility in which additional demand deviates from fixed demand patterns. The work of Boulaksil et al [33] studies a problem in which a supplier (i.e., a contract manufacturer) serves several manufacturers (i.e., outsourcers). Each outsourcer reserves capacity flexibility to the supplier and charges unit penalty costs to the supplier if the required quantity is not produced.…”

Section: Contribution To Existing Literaturementioning

confidence: 99%

A Sustainable Outsourcing Strategy Regarding Cost, Capacity Flexibility, and Risk in a Textile Supply Chain

2016

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Abstract:The textile industry achieves economic benefits through outsourcing to low cost markets. Today, reshoring is an emerging trend due to rising cost and unemployment concerns. This problem is primarily due to an industry-wide focus on economic benefits only. Cost saving is a basic reason for international outsourcing while domestic outsourcing provides capacity flexibility. Moreover, outsourcing risk has a major impact on strategic location of the production destinations. Therefore, the merging of capacity flexibility and outsourcing risk comprises a sustainable outsourcing strategy. This paper suggests a sustainable outsourcing strategy in which a textile manufacturer outsources to international markets for cost savings and outsources to the domestic market for capacity flexibility. The manufacturer reserves some capacity with domestic suppliers, and pays a unit penalty cost if this capacity flexibility is not utilized. The manufacturer seeks minimum risk in international markets. Operational cost, penalty cost, and outsourcing risk are considered to be objective functions. Decisions include the assignment of contracts to suitable facilities, the quantity of each contract, and allocation of reserved capacity flexibility among domestic suppliers. Multi-objective problem of this research was solved using three variants of goal programming. Several insights are proposed for outsourcing decision making in the current global environment.

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“…For a producer, surge capacity may refer to its own excess capacity to deal with volatile or uncertain demand (Driver, 2000), or the capacity of a contract manufacturer that the producer can outsource the excess order to (Hsieh and Wu, 2008). For an LSP, surge capacity may refer to its own flexible capacity to give priority (Boulaksil et al, 2011), or the capacity of other LSPs through horizontal cooperation (Cruijssen et al, 2007), which is similar to Toyota keiretsu.…”

Section: Collaboration For Recoverymentioning

confidence: 99%

“…Instead of focussing on a focal company (e.g. Boulaksil et al, 2011;Driver, 2000;Hsieh and Wu, 2008), we will take a three-tier supply chain perspective, so we will look at each tier's performance and try to find a win-win combination, i.e. good for all tiers.…”

Section: Collaboration For Recoverymentioning

confidence: 99%

Collaborate or not? A system dynamics study on disruption recovery

Zhu

Krikke

Caniëls

2016

Industr Mngmnt & Data Systems

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Purpose -The purpose of this paper is to investigate different combinations of collaboration strategies to deal with different types of supply chain disruptions, find the best combination, and provide targeting suggestions for investments. Design/methodology/approach -A system dynamics simulation is applied to study a supply chain with three tiers: a producer, a logistics service provider (LSP), and a retailer. There are three types of disruptions to simulate: a producer capacity disruption, an LSP capacity disruption, and a demand disruption. As each tier has the option to choose whether or not to collaborate with the other two tiers, eight (2 × 2 × 2) scenarios are generated to represent different combinations of collaboration strategies. Findings -For a producer capacity disruption, both the producer and the LSP should collaborate by providing their surge capacities, while the retailer does not have to collaborate. For an LSP capacity disruption, the producer should not provide its surge capacity, while the LSP should do so; the retailer does not have to collaborate. For a demand disruption, both the producer and the LSP should not provide their surge capacities, while the retailer should not collaborate but play shortage gaming. Targeting suggestions for investments are provided. Originality/value -Through system dynamics modeling, this study allows the discussion of surge capacity to help supply chain partners and the discussion of shortage gaming when products are oversupplied, in a disruption recovery system over time.

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Capacity flexibility allocation in an outsourced supply chain with reservation

Cited by 30 publications

References 18 publications

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis

A Sustainable Outsourcing Strategy Regarding Cost, Capacity Flexibility, and Risk in a Textile Supply Chain

Collaborate or not? A system dynamics study on disruption recovery

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