Title: Using integrated simulation-optimisation to optimise staffing decisions in a service supply chain

Authors: Stanislaus Solomon; Gertrude P. Pannirselvam; Haitao Li

Addresses: Management and Marketing Department, Southern Illinois University Edwardsville, Edwardsville, IL 62025, USA ' Management and Marketing Department, Southern Illinois University Edwardsville, Edwardsville, IL 62025, USA ' Supply Chain and Analytics Department, University of Missouri-St. Louis, St. Louis, MO 63121, USA

Abstract: The purpose of this research is to address the problem of staffing skilled personnel in a service setting where personnel are drawn from an outsourcing firm and where uncertainty in resource availability is explicitly considered. To achieve this objective, we design and implement a new simulation-optimisation algorithm by combining a scatter search metaheuristic with Monte Carlo simulation. Through a real-life case study and a comprehensive computational experiment, this paper shows that the solution quality provided by our simulation-optimisation framework is superior to the deterministic solution based on point estimates. The framework explicitly addresses uncertainty results in a staff sourcing strategy that is robust and less prone to be impacted by changes in resource availability. Effective implementation of such a framework in outsourcing context requires well-coordinated information sharing and integrated decision-making between the supply chain partners.

Keywords: personnel outsourcing; service supply chain; resource allocation; staffing; simulation-optimisation; Monte Carlo simulation; metaheuristics; scatter search.

DOI: 10.1504/IJISM.2022.119589

International Journal of Integrated Supply Management, 2022 Vol.15 No.1, pp.1 - 26

Received: 12 Dec 2019
Accepted: 03 Apr 2021
Published online: 09 Dec 2021 *

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