Flávio S. Fogliatto, Federal University of Rio Grande do Sul, Brazil, ffogliatto@producao.ufrgs.br

This study explores empirical relationships between outsourced work, and efficiency and effectiveness performance in manufacturing. Hypotheses are tested though regression analysis of data from 698 manufacturers of metal products and equipment from 22 countries. The results indicate that late deliveries to customers and customer complaints increase with an increase in subcontracted work. The study reinforces the need for managers to introduce actions and practices to minimize risks derived from contracting out manufacturing work.

Mohammed Amine Benkaddour, École de technologie supérieure, mohammed-amine.benkaddour.1@ens.etsmtl.ca

We present a supply chain optimization model that simultaneously considers sourcing decisions for each part in a complex multi-level BOM but decides on which should be assembled into sub-assemblies or modules. Indeed, some parts in the BOM are flexible in the sense that they can be grouped with other parts or sub-assemblies to form modules. The problem is to find the composition of the modules and the assignment of modules and parts to subcontractors while minimizing the overall supply chain cost. The problem considered is one faced by a jet engine manufacturer when designing its multi-echelon, multi-period, multi-product supply chain network with deterministic demand.

The Mixed Integer Programming model considers multiple sourcing where the number of parts sourced from a business partner must exceed a lower bound as dictated by purchasing contracts. Computational results are presented for different scenarios allowing the combined analysis of supply chain design and supplier relationships.