An MILP-based Intra-firm Smart Resource Sharing Model

Abstract

Transition from products to services and integrating services into core product offering are well documented in management literature. Here the focus is on the intra-firm operation and supply strategies from a backward integration perspective. The objective of this paper is to develop a smart resource sharing model to facilitate the intra-firm backward integration that enables inhouse manufacturing of selected number of mission critical products. This paper deploys a deterministic mixed integer linear programming model to reshape the current maintenance and repair servicing facility layout to integrate the reverse engineering-based component manufacturing in a naval organization. Analysis of results suggests that this transition involves establishment of a new set of operating policies on resource sharing and job scheduling as the entity relaxes its' service-dominant stance.