Orchestrating a network of activities in the value chain

  • Authors:

  • N. Viswanadham;S. Kameshwaran

  • Affiliations:

  • Center for Global Logistics and Manufacturing Strategies, Indian School of Business, Hyderabad;Center for Global Logistics and Manufacturing Strategies, Indian School of Business, Hyderabad

  • Venue:
  • CASE'09 Proceedings of the fifth annual IEEE international conference on Automation science and engineering
  • Year:
  • 2009

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Abstract

The orchestrator is a management literature metaphor to describe the role of a player who organizes and manages a set of activities in a network, by ensuring value-creation opportunities in the system and value appropriation mechanisms for each player. In this paper, we consider orchestrators who do not own capacities but have access to a large pool of globally dispersed service providers in the various stages of the supply chain. For a given customer order, the orchestrator identifies the right set of service providers and coordinates the entire execution such that order is delivered as per the requirements. We propose a mixed integer program to optimally choose the service providers taking into account the capacities, production and distribution costs, international taxation, tariffs, and coordination costs.