Advanced Search
DSpace@MIT

On Production and Subcontracting Strategies for Manufacturers with Limited Capacity and Backlog-Dependent Demand

Research and Teaching Output of the MIT Community

Show simple item record

dc.contributor.author Tan, Barli en_US
dc.contributor.author Gershwin, Stanley B. en_US
dc.date.accessioned 2004-05-28T19:33:16Z
dc.date.available 2004-05-28T19:33:16Z
dc.date.issued 2001-05 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/5315
dc.description.abstract We study a manufacturing firm that builds a product to stock to meet a random demand. If there is a positive surplus of finished goods, the customers make their purchases without delay and leave. If there is a backlog, the customers are sensitive to the quoted lead time and some choose not to order if they feel that the lead time is excessive. A set of subcontractors, who have different costs and capacities, are available to supplement the firm's own production capacity. We derive a feedback policy that determines the production rate and the rate at which the subcontractors are requested to deliver products. The performance of the system when it is managed according to this policy is evaluated. The subcontractors represent a set of capacity options, and we calculate the values of these options. en_US
dc.format.extent 3748918 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US en_US
dc.publisher Massachusetts Institute of Technology, Operations Research Center en_US
dc.relation.ispartofseries Operations Research Center Working Paper;OR 354-01 en_US
dc.title On Production and Subcontracting Strategies for Manufacturers with Limited Capacity and Backlog-Dependent Demand en_US
dc.type Working Paper en_US


Files in this item

Name Size Format Description
OR-354-01.pdf 3.575Mb PDF

This item appears in the following Collection(s)

Show simple item record

MIT-Mirage