Order release strategies to control outsourced operations in a supply chain

Youssef Boulaksil, Jan C. Fransoo

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)


We consider an original equipment manufacturer (OEM) that outsources some of its production activities to a contract manufacturer that serves several customers on the same capacitated production line. The contract manufacturer is not willing to share all relevant information with the OEM, and therefore, a complex situation arises for the OEM to control the outsourced operations properly. In this paper, we discuss and compare the performance of three different order release strategies, which differ in the number of decision levels, such that the probabilistic behaviour of the contract manufacturer is (partly) incorporated and production plans are generated based on (deterministic) mathematical programming models. Simulation results show that an order release strategy with multiple decision levels performs significantly better than an order release strategy with only one decision level. We also discuss the conditions for a successful implementation of the more advanced order release strategy. Further, some ideas for future research are presented.

Original languageEnglish
Pages (from-to)149-160
Number of pages12
JournalInternational Journal of Production Economics
Issue number1
Publication statusPublished - May 2009
Externally publishedYes


  • Ordering process
  • Outsourcing
  • Postponement
  • Simulation
  • Supply chain planning

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering


Dive into the research topics of 'Order release strategies to control outsourced operations in a supply chain'. Together they form a unique fingerprint.

Cite this