The theory of constraints and the make-or-buy decision: an update and review.: An article from: Journal of Supply Chain Management
Book Details
ISBN / ASINB0009H3JZ2
ISBN-13978B0009H3JZ6
MarketplaceFrance 🇫🇷
Description
This digital document is an article from Journal of Supply Chain Management, published by National Association of Purchasing Management, Inc. on January 1, 2005. The length of the article is 4499 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the author: The make-or-buy decision has traditionally been made using standard cost accounting methods. In this Journal, Gardiner and Blackstone (1991) made a strong case for incorporating the bottleneck capacity into the decision. However, their method did not guarantee the best solution for the more complicated make-or-buy problem. Additionally, their approach in some cases allowed organizations to forego opportunities for profit improvement. Since the publication of the Gardiner and Blackstone research, spreadsheets with in-built Linear Programming (LP) based optimizers allow for quick "what-if" analyses that encourage efforts toward optimal solutions for complicated problems. This article is a review and update of the Gardiner and Blackstone methodology based on spreadsheet LP that provides enhanced solutions in complex environments with multiple products and bottleneck situations. Specific managerial implications are offered.
Citation Details
Title: The theory of constraints and the make-or-buy decision: an update and review.
Author: Jaydeep Balakrishnan
Publication:Journal of Supply Chain Management (Refereed)
Date: January 1, 2005
Publisher: National Association of Purchasing Management, Inc.
Volume: 41 Issue: 1 Page: 40(8)
Distributed by Thomson Gale
From the author: The make-or-buy decision has traditionally been made using standard cost accounting methods. In this Journal, Gardiner and Blackstone (1991) made a strong case for incorporating the bottleneck capacity into the decision. However, their method did not guarantee the best solution for the more complicated make-or-buy problem. Additionally, their approach in some cases allowed organizations to forego opportunities for profit improvement. Since the publication of the Gardiner and Blackstone research, spreadsheets with in-built Linear Programming (LP) based optimizers allow for quick "what-if" analyses that encourage efforts toward optimal solutions for complicated problems. This article is a review and update of the Gardiner and Blackstone methodology based on spreadsheet LP that provides enhanced solutions in complex environments with multiple products and bottleneck situations. Specific managerial implications are offered.
Citation Details
Title: The theory of constraints and the make-or-buy decision: an update and review.
Author: Jaydeep Balakrishnan
Publication:Journal of Supply Chain Management (Refereed)
Date: January 1, 2005
Publisher: National Association of Purchasing Management, Inc.
Volume: 41 Issue: 1 Page: 40(8)
Distributed by Thomson Gale
