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Title: A Two Level Make/Buy and Subcontractor Selection Model
Authors: Cakravastia, Andi 
Attisa, Ita 
Yulisar, Aldrian 
Takahashi, Katsuhiko 
Issue Date: 2007
Publisher: University of the Thai Chamber of Commerce
Source: Andi Cakravastia, Ita Attisa, Aldrian Yulisar, Katsuhiko Takahashi (2007) A Two Level Make/Buy and Subcontractor Selection Model.
Conference: Proceedings of the 2nd International Conference on Operations and Supply Chain Management 
Abstract: The main objective of this paper is to propose a two levelmake/buy decision and subcontractor selection modelbased on situation of a small scale make-to-ordermanufacturer. The proposed model consists of two levels.In the first level make/buy decision are considered. Thesecond level model responsible to select the bestsubcontractor based on the result from the first levelmodel. In this paper make/buy decision is affected by fivefactors: (i) availability of facilities and capabilities, (ii)load of subcobtractors, (iii) level of difficulties, (iv) cost,and (v) capacity. The objective function of make/buymodel is to minimize total cost consist of subcontractorcost, production cost, material cost, and inventory cost.The output from this model is quantity to make/buy.Subsequently, this output is considered as input forsecond level subcontractor selection model. The resultshows that the proposed model can be implemented tosolve make-or-buy decision and subcontractor selectionproblem.
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
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