An MILP-based Intra-firm Smart Resource Sharing Model

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.