摘要:Manufacturing firms primarily aim at maximizing profit or revenue growth by way of meeting the custo mer demands with respect to quantity, quality, cost and time through optimum utilization of available resources such as; manpower, inventories, plant and facilities etc. Sometimes, due to various constraints the demand is not fulfilled. Such situations compel the firms to outsource production. Production outsourcing involves contracting another production unit to carry out specific aspects of its production activity either in whole or in part. However, managers need to examine all outsourcing decisions based on means, motives and opportunities. In this paper, an attempt has been made to find asolution to meet the instantaneous higher demand by production outsourcing using various models namely; standard accounting, theory of constraints (TOC), and linear programming (LP) enhancement of TOC with varying contractor's price. The models are developed, tested and compared for a real life situation which might help in taking decisio ns on whether to go for internal manufacture or to outsource and to what extent for maximizing the throughput
关键词:Production outsourcing services; theory of constraints; linear programming