Fuzzy multiple-goal programming for analysing outsourcing cost-effectiveness in hi-tech manufacturing

Given high-tech industry trends such as limited production, diverse model range, short product life cycle, and high customer responsiveness, issues related to recognitive core vs. non-core operations in internal vs. external environments are crucial in hi-tech production systems planning. This work elucidates the relationship between capacity planning and suppliers with a focus on quantity allocation, manufacturing quantity, capacity limit, warehouse space, and time period for hi-tech production planning. A fuzzy multiple-goal programming approach is adopted to model total cost, holding cost, and rework cost in order to analyse the relative cost-effectiveness of different factors. The proposed model was examined via the fuzzy analysis of its application to an actual building-integrated photovoltaic (BIPV) manufacturer with variable characteristics. The proposed model of cost-effectiveness accommodates variables such as multiple components, quality, and responsiveness, it integrates multi-stage functions, and a specific implementation is demonstrated. Various scenarios are designed to analyse the transaction options for outsourcing under combined schemes. The analytical results in this study can help decision makers to systematically analyse the cost effectiveness of outsourcing during capacity planning in practical applications.