Production costs and outsourcing

Information Technology Outsourcing: Reducing Costs or knowledge?

An Integrated Aggregate Production Planning Model with Two-Phase Production System and Maintenance Costs

Aggregate production planning (APP) is one of the most important issues carried out in manufacturing environments which seeks efficient planning, scheduling and coordination of all production activities that optimizes the company's objectives. In this paper, we develop a mixed integer linear programming (MILP) model for an integrated aggregate production planning system with closed loop supply ...

Transaction Costs and Outsourcing Dynamics: A System Dynamics Approach

Increasingly, firms are outsourcing their processes. Outsourcing regards not only peripheral activities but portions of key activities as well. Outsourcing is a pervasive phenomenon that often overlaps, and interferes with, the strategic decision to define a firm’s boundaries. By outsourcing phases of R&D processes, for example, firms may lose their know-how concerning the production of core pr...

Administrative Costs and Production Efficiency

Economists providing policy advice often justify recommendations of government non-interference in the allocation of resources between production sectors and free trade with reference to the Diamond and Mirrlees efficiency theorem. However, such policy advice may be misleading when, as is in general the case, administrative costs effectively restrict the set of feasible tax instruments availabl...

Safeguarding the Promise of Production Outsourcing

Today’s product companies (original equipment manufacturers, or OEMs) increasingly outsource production, especially when the activities are asset intensive or require process technologies characterized by rapid innovation. When such an OEM also outsources the procurement of the required materials, especially to the party providing the production services, the OEM risks unpleasant surprises, suc...