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    Rights statement: The final, definitive version of this article has been published in the Journal, European Journal of Operational Research 239 (3), 2014, © ELSEVIER

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The design of simple subcontracting rules for make-to-order shops: an assessment by simulation

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The design of simple subcontracting rules for make-to-order shops: an assessment by simulation. / Thurer, Matthias; Stevenson, Mark; Qu, Ting et al.
In: European Journal of Operational Research, Vol. 239, No. 3, 16.12.2014, p. 854-864.

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Thurer M, Stevenson M, Qu T, Filho M. The design of simple subcontracting rules for make-to-order shops: an assessment by simulation. European Journal of Operational Research. 2014 Dec 16;239(3):854-864. Epub 2014 Jun 25. doi: 10.1016/j.ejor.2014.06.018

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Thurer, Matthias ; Stevenson, Mark ; Qu, Ting et al. / The design of simple subcontracting rules for make-to-order shops : an assessment by simulation. In: European Journal of Operational Research. 2014 ; Vol. 239, No. 3. pp. 854-864.

Bibtex

@article{7624e8a8bc064fbf91e7687a6ff6f5e5,
title = "The design of simple subcontracting rules for make-to-order shops: an assessment by simulation",
abstract = "Subcontracting can be an important means of overcoming capacity shortages and of workload balancing, especially in make-to-order companies characterized by high variety, high demand variation and a job shop configuration. But there is a lack of simple, yet powerful subcontracting rules suitable for such contexts. The few existing rules were developed for single work center shops and neglect the actual subcontracting lead time, meaning some subcontracted jobs are destined to become tardy. This study uses Workload Control theory on matching required and available capacity over time to propose four new rules that address these shortcomings. The new rules are compared against four existing rules using an assembly job shop simulation model where the final, assembled product consists of several sub-assemblies that either flow through an internal job shop or are subcontracted. The best new rules stabilize the direct load queuing in front of a work center and significantly improve performance compared to the existing rules. For example, when the workload exceeds capacity by 10%, a 50% reduction in percentage tardy can be achieved. By examining how the workload behaves over time, we reveal that improvements come from selectively subcontracting the sub-assemblies that would otherwise cause overloads, thereby cutting off peaks in the workload.",
keywords = "Production, Subcontracting, Make-to-order, Workload control, Job shop",
author = "Matthias Thurer and Mark Stevenson and Ting Qu and Moacir Filho",
note = "The final, definitive version of this article has been published in the Journal, European Journal of Operational Research 239 (3), 2014, {\textcopyright} ELSEVIER",
year = "2014",
month = dec,
day = "16",
doi = "10.1016/j.ejor.2014.06.018",
language = "English",
volume = "239",
pages = "854--864",
journal = "European Journal of Operational Research",
issn = "0377-2217",
publisher = "Elsevier Science B.V.",
number = "3",

}

RIS

TY - JOUR

T1 - The design of simple subcontracting rules for make-to-order shops

T2 - an assessment by simulation

AU - Thurer, Matthias

AU - Stevenson, Mark

AU - Qu, Ting

AU - Filho, Moacir

N1 - The final, definitive version of this article has been published in the Journal, European Journal of Operational Research 239 (3), 2014, © ELSEVIER

PY - 2014/12/16

Y1 - 2014/12/16

N2 - Subcontracting can be an important means of overcoming capacity shortages and of workload balancing, especially in make-to-order companies characterized by high variety, high demand variation and a job shop configuration. But there is a lack of simple, yet powerful subcontracting rules suitable for such contexts. The few existing rules were developed for single work center shops and neglect the actual subcontracting lead time, meaning some subcontracted jobs are destined to become tardy. This study uses Workload Control theory on matching required and available capacity over time to propose four new rules that address these shortcomings. The new rules are compared against four existing rules using an assembly job shop simulation model where the final, assembled product consists of several sub-assemblies that either flow through an internal job shop or are subcontracted. The best new rules stabilize the direct load queuing in front of a work center and significantly improve performance compared to the existing rules. For example, when the workload exceeds capacity by 10%, a 50% reduction in percentage tardy can be achieved. By examining how the workload behaves over time, we reveal that improvements come from selectively subcontracting the sub-assemblies that would otherwise cause overloads, thereby cutting off peaks in the workload.

AB - Subcontracting can be an important means of overcoming capacity shortages and of workload balancing, especially in make-to-order companies characterized by high variety, high demand variation and a job shop configuration. But there is a lack of simple, yet powerful subcontracting rules suitable for such contexts. The few existing rules were developed for single work center shops and neglect the actual subcontracting lead time, meaning some subcontracted jobs are destined to become tardy. This study uses Workload Control theory on matching required and available capacity over time to propose four new rules that address these shortcomings. The new rules are compared against four existing rules using an assembly job shop simulation model where the final, assembled product consists of several sub-assemblies that either flow through an internal job shop or are subcontracted. The best new rules stabilize the direct load queuing in front of a work center and significantly improve performance compared to the existing rules. For example, when the workload exceeds capacity by 10%, a 50% reduction in percentage tardy can be achieved. By examining how the workload behaves over time, we reveal that improvements come from selectively subcontracting the sub-assemblies that would otherwise cause overloads, thereby cutting off peaks in the workload.

KW - Production

KW - Subcontracting

KW - Make-to-order

KW - Workload control

KW - Job shop

U2 - 10.1016/j.ejor.2014.06.018

DO - 10.1016/j.ejor.2014.06.018

M3 - Journal article

VL - 239

SP - 854

EP - 864

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 3

ER -