Title: A modelling approach for outsourcing decisions in Supply Chain Management

Authors: Navin K. Dev, Sanjeev Swami, Rahul Caprihan

Addresses: Faculty of Engineering, Department of Mechanical Engineering, Dayalbagh Educational Institute, Dayalbagh, Agra – 282005, India. ' Faculty of Social Sciences, Department of Management, Dayalbagh Educational Institute, Dayalbagh, Agra – 282005, India. ' Faculty of Engineering, Department of Mechanical Engineering, Dayalbagh Educational Institute, Dayalbagh, Agra – 282005, India

Abstract: The rapidly changing global market scenario is increasingly forcing manufacturing firms to pursue outsourcing as an important option. From a research viewpoint, one issue that has remained relatively unexplored is the effect that capacity expansion with availability of overtime option and upstream supplier cost structure has on outsourcing decisions. There is scant research exploring the circumstances in which mixed models (fraction of demand) might be appropriate (Harland et al., 2005). The suggested model explicitly considers pricing and outsourcing simultaneously by operationalising the outsourcing decision through a variable that captures the fraction of demand met by in-house manufacturing through overtime.

Keywords: supply chain management; SCM; modelling; production capacity; decentralisation; outsourcing; pricing; demand; in-house manufacturing.

DOI: 10.1504/IJMTM.2009.023754

International Journal of Manufacturing Technology and Management, 2009 Vol.16 No.4, pp.377 - 397

Published online: 10 Mar 2009 *

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