Seeking maximal return on sales (ROS) of a hi-tech production project through the determinations of in-house or outsourcing activities is presented in this study. This paper not only introduces the finite budget and the capacitated in-house/outsourcing activities into the mathematical model called determining in-house/outsourcing (DIO) model, but applies the sales price function with the decrease of the completion time. A step-by-step algorithm for searching the suggested solution of the DIO model is also provided in this study. In addition, a computerized computing tool written with Visual Basic 6.0 to reach the suggested optimality as well as perform the simulated analysis, and a numerical example is followed. This study indeed contributes a computerized tool to the manager of the hi-tech project in determining the in-house/outsourcing activities into the production project.
Journal of information & optimization sciences 25(3), pp.491-505