Scheduling with subcontracting options

Chen, Zhilong; Li, Chung‐Lun

doi:10.1080/07408170801975057

Cited by 64 publications

(18 citation statements)

References 22 publications

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“…Although a considerable number of papers in the literature analyzes the subcontracting strategies in production planning and scheduling problems of manufacturers (Kamien and Li 1990;Tan and Gershwin 2004;Chen and Li 2008;Lee and Sung 2008), the subcontractors' scheduling problems have received less attention. In reality, a subcontractor by itself faces a limited capacity while providing service to several manufacturers.…”

Section: Introductionmentioning

confidence: 99%

Decentralized subcontractor scheduling with divisible jobs

Hezarkhani

Kubiak

2015

J Sched

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Subcontracting allows manufacturer agents to reduce completion times of their jobs and thus obtain savings. This paper addresses the coordination of decentralized scheduling systems with a single subcontractor and several agents having divisible jobs. Assuming complete information, we design parametric pricing schemes that strongly coordinate this decentralized system, i.e., the agents' choices of subcontracting intervals always result in efficient schedules. The subcontractor's revenue under the pricing schemes depends on a single parameter which can be chosen to make the revenue as close to the total savings as required. Also, we give a lower bound on the subcontractor's revenue for any coordinating pricing scheme. Allowing private information about processing times, we prove that the pivotal mechanism is coordinating, i.e., agents are better off by reporting their true processing times, and by participating in the subcontracting. We show that the subcontractor's maximum revenue with any coordinating mechanism under private information equals the lower bound of that with coordinating pricing schemes under complete information. Finally, we address the asymmetric case where agents obtain savings at different rates per unit reduction in completion times. We show that coordinating pricing schemes do not always exist in this case.

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Section: Introductionmentioning

confidence: 99%

Decentralized subcontractor scheduling with divisible jobs

Hezarkhani

Kubiak

2015

J Sched

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“…So after a fixed transportation delay τ, all outsourced jobs can be ready for their stage-two processing. Similar assumption has been taken in the literature such asChen and Li (2008) and Sung (2008a, 2008b).Such a new problem can also be solved by the same idea as before because Theorem 1 still holds. Consequently, the two dynamic programming formulations are still valid expect that we need to change the feasible range of some parameters.In the optimal dynamic program, we have defined f(j,x,y,z,u,a,b,c)to be the minimum makespan for a subschedule where x is the total stage-one processing time for the outsourced jobs with the feasible range 0≤x≤a-τ.…”

mentioning

confidence: 60%

“…Such work include Chen and Li (2008), Sung (2008a, 2008b). In more detailed models, scheduling the outsourced jobs on the outside supplier's machine is considered together with the in-house scheduling.…”

Section: Literature Reviewmentioning

confidence: 98%

Two-stage production scheduling with an option of outsourcing from a remote supplier

2009

J. Syst. Sci. Syst. Eng.

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This paper studies a two-stage production system with n job orders where each job needs two sequential operations. In addition to the two in-house production facilities, the manufacturer has another option of outsourcing some stage-one operations to a remote outside supplier. The jobs with their stage-one operations outsourced are subject to a batch transportation delay from the outside supplier before their respective stage-two operations can be started in-house. The problem is to design an integrated schedule that considers both the in-house production and the outsourcing with the aim of optimally balancing the outsourcing cost and the makespan. The problem is NP-hard. We have developed an optimal algorithm and a heuristic algorithm to solve the problem, and conducted computational experiments to validate our model and algorithms. Our modeling and algorithm framework can be extended to handle other more general cases such as when the outside supplier has a production facility with a different processing efficiency and when there are many outside suppliers on a spot market.

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“…They formulate the outsourcing problem as a linear programming problem and an analytical solution is identified in their work. Chen et al [3] and Chunga et al [5] consider the scheduling problem with subcontracting options. They suggest a heuristic algorithm to solve the problem.…”

Section: Introductionmentioning

confidence: 99%

Integer Programming Approach for the Outsourcing Decision Problem in a Single Machine Scheduling Problem with Due Date Constraints

Hong¹,

Lee²

2013

Korean Management Science Review

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In this paper, we considers the outsourcing decision problem in a single machine scheduling problem. The decision problem is to determine for each job whether to be processed on an in-house manufacturing or external facilities(outsourcing). Moreover, this paper considers a situation where each job has a due date. The objective of the problem is to minimize the outsourcing cost, subject to the due date constraints. The considered problem is proved to be NP-hard. Some solution properties and valid inequalities are derived, and an effective lower bound is derived based on the LP-relaxation. The results of experimental tests are presented to evaluate the performance of the suggested lower bound.

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Scheduling with subcontracting options

Cited by 64 publications

References 22 publications

Decentralized subcontractor scheduling with divisible jobs

Decentralized subcontractor scheduling with divisible jobs

Two-stage production scheduling with an option of outsourcing from a remote supplier

Integer Programming Approach for the Outsourcing Decision Problem in a Single Machine Scheduling Problem with Due Date Constraints

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