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.
['Navin K. Dev', 'Sanjeev Swami', 'Rahul Caprihan']
A modelling approach for outsourcing decisions in Supply Chain Management