Coordinated resource allocation by mutual outsourcing in decentralized supply chain

  • Authors:

  • Kung-Jeng Wang;H. M. Wee;Jonas Yu;K. Y. Kung

  • Affiliations:

  • Department of Industrial Management, National Taiwan University of Science and Technology, Taipei, Taiwan, R.O.C.;Department of Industrial Engineering Chung Yuan Christian University, Chungli, Taiwan;Logisitcs Management Department, Takming College, Taipei, Taiwan;Department of Mechanical Engineering, Nanya Institute of Technology, Chungli, Taiwan

  • Venue:
  • SEAL'06 Proceedings of the 6th international conference on Simulated Evolution And Learning
  • Year:
  • 2006

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Abstract

Lumpy demand forces capacity planners to maximize the profit of individual factories as well as simultaneously take advantage of outsourcing from its supply chain and even competitors. This study examines a capacity planning business model in which consists of many profit-centered factories (autonomous agents). We propose an ant algorithm to solve a set of non-linear mixed integer programming models with different economic objectives and constraints. The proposed method allows a mutually acceptable capacity plan for a set of customer tasks to be allocated by the negotiating parties, each with information on company objectives, cost and price. Experiment results reveal that near optimal solutions for both isolated (a single factory) and negotiation-based (between factories) environments are obtained.