Title: Capacity planning with outsourcing opportunities under reliability and maintenance constraints

Authors: Mohammed Haoues; Mohammed Dahane; Kinza Nadia Mouss

Addresses: Laboratory of Automatic and Manufacturing, Industrial Engineering Department, Batna 2 University, 53, Route de Constantine, Fésdis, Batna 05078, Algeria ' Laboratoire de Génie Informatique, de Production et de Maintenance, Université de Lorraine, F-57073 Metz, France ' Laboratory of Automatic and Manufacturing, Industrial Engineering Department, Batna 2 University, 53, Route de Constantine, Fésdis, Batna 05078, Algeria

Abstract: This paper investigates capacity planning with outsourcing under reliability-maintenance constraints. The considered supply-chain consists of a single-manufacturer and multiple-subcontractors. The manufacturer's company is composed of a single unit subject to random failures. Corrective maintenance is endorsed when failures occur, and preventive maintenance can be carried out to reduce the degradation. The high in-house costs and the incapacity motivate the manufacturer outsourcing to independent subcontractors. In addition, based on the principle of comparative advantage, the manufacturer balances between in-house capacities and outsourcing services, which minimises the total cost. The aim is to propose a new policy based on the combination between integrated-maintenance and outsourcing policies. A mathematical model and an optimisation procedure have been developed in order to determine the best in-house production-maintenance and outsourcing plans for the manufacturer while minimising the total cost. In order to show the applicability of our approach, we conduct experimentations to study the management insights.

Keywords: capacity planning; in-house capacity; integrated maintenance; outsourcing; genetic algorithms.

DOI: 10.1504/IJISE.2021.113470

International Journal of Industrial and Systems Engineering, 2021 Vol.37 No.3, pp.382 - 409

Received: 22 Oct 2018
Accepted: 02 Jun 2019

Published online: 05 Mar 2021 *

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