Collaborative Planning in Supply Chains by Lagrangian Relaxation

A collaborative planning framework based on the Lagrangian relaxation method is developed to coordinate and optimize the production planning of the independent partners linked by material flows in multiple tier supply chains. Linking constraints and dependent demand constraints were added to the mon...

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Bibliographic Details
Published in:First International Multi- Symposiums on Computer and Computational Sciences : (IMSCCS 06) : proceedings : June 20-June 24, 2006, Hangzhou, Zhejiang, China Vol. 2; pp. 314 - 321
Main Authors: Lanshun Nie, Xiaofei Xu, Dechen Zhan
Format: Conference Proceeding
Language:English
Published: IEEE 01.06.2006
Subjects:
Collaboration
Contracts
Lagrangian functions
Materials science and technology
Mathematical programming
Multiagent systems
Optimized production technology
Production planning
Supply chain management
Supply chains
ISBN:9780769525815, 0769525814
Online Access:Get full text
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Summary:A collaborative planning framework based on the Lagrangian relaxation method is developed to coordinate and optimize the production planning of the independent partners linked by material flows in multiple tier supply chains. Linking constraints and dependent demand constraints were added to the monolithic Multi-level, multi-item capacitated lot sizing problem (MLCLSP) for supply chains. Model MLCLSP was Lagrangian relaxed and decomposed into facility-separable subproblems based on the separability of it. Surrogate gradient algorithm was used to update Lagrangian multipliers, which coordinated decentralized decisions of the facilities in supply chains. Production planning of independent partners could be appropriately coordinated and optimized by this framework without intruding their decision authorities and private information. This collaborative planning scheme was applied to a large set problem in supply chain production planning. Experimental results show that the proposed coordination mechanism and procedure come close to optimal results as obtained by central coordination
ISBN:9780769525815
0769525814
DOI:10.1109/IMSCCS.2006.199