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A "make or buy" decision model with economies of scale

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3 Author(s)
Bouchriha, H. ; Lab. d''Automatique de Grenoble, ENS de Phys. de Grenoble, Saint Martin d''Heres, France ; D'Amours, S. ; Ladet, P.

In this article, we present, using an example of a logistic chain, a mathematical model for "make or buy" decision. In the first part of this paper, we propose a multi-objective mixed linear problem, considering linear costs. This model is solved through goal programming. In the second part of this paper, we extend the model by dealing with economies of scale and we propose an algorithm based on dichotomy analysis for the resolution of this extension.

Published in:

Systems, Man and Cybernetics, 2002 IEEE International Conference on  (Volume:6 )

Date of Conference:

6-9 Oct. 2002