Coordinated Resource Allocation by Mutual Outsourcing in Decentralized Supply Chain

  • Kung-Jeng Wang
  • H. M. Wee
  • Jonas Yu
  • K. Y. Kung
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4247)


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.


Task Allocation Capacity Planning Resource Capacity Working Cell Target Utilization 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2006

Authors and Affiliations

  • Kung-Jeng Wang
    • 1
  • H. M. Wee
    • 2
  • Jonas Yu
    • 3
  • K. Y. Kung
    • 4
  1. 1.Department of Industrial ManagementNational Taiwan University of Science and TechnologyTaipeiTaiwan, R.O.C.
  2. 2.Department of Industrial Engineering Chung Yuan Christian UniversityChungliTaiwan
  3. 3.Logisitcs Management DepartmentTakming CollegeTaipeiTaiwan
  4. 4.Department of Mechanical EngineeringNanya Institute of TechnologyChungliTaiwan

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