Optimization of Manufacturing Enterprise Collaboration with Subcontractors Through Production Process Simulation

Abstract This paper presents a simulation-based model aimed at optimizing the outsourcing of production tasks to external subcontractors, focusing on minimizing costs and production times. The study explores a manufacturing scenario where a company utilizes both in-house and subcontractor resources for machining metal components. A simulation model was developed in FlexSim, employing advanced tools such as the OptQuest optimizer to analyze various scenarios of production allocation. Parameters like production cost, machine utilization, and task completion times were modelled and evaluated. The results showcase the effectiveness of simulation models in identifying optimal production strategies, balancing cost-efficiency with operational flexibility. The findings emphasize the utility of such tools for decision-making in production management, providing insights into resource allocation and performance improvement.