Integration of subcontracting activity in a production planning for randomly failing manufacturing system: Feasibility and profitability conditions

This study deals with the problem of the integration of subcontracting under a combined approach of maintenance management and production control. We consider a single randomly failing and repairable machine supplying units to a direct costumer. In order to better exploit the production capacity of this manufacturing system, the machine is allocated to perform a subcontracting task to others costumers (contractors) under a subcontracting relationship. Our objective is to find the conditions under which the subcontracting activity is feasible and profitable for the subcontracting provider (our manufacturing system). These conditions are discussed based on the failure rate of the machine which depends on its production rate and the subcontracting parameters (duration, production rate...).