New Coordination Schemes

Martin Albrecht ()
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Martin Albrecht: Paul Hartmann AG

Chapter Chapter 4 in Supply Chain Coordination Mechanisms, 2010, pp 63-127 from Springer

Abstract: Abstract This chapter and Chap. 5 contain the core of this thesis, new mechanisms for collaborative supply chain planning. Recapitulating the definitions of Sect. 2.3.1, a coordination mechanism is a contractual framework for coordinating the outcomes of (self-interested) actions of the decentralized parties. Each of the mechanisms presented here comprises a scheme specifying the proposal generation and the information exchange. For all schemes developed in this thesis, two variants will be provided that cover the different requirements for organizing the information exchange raised by the contractual frameworks presented in Chap. 5: An iterative, unilateral exchange of cost changes and a one-shot exchange by both parties. This allows us to describe and analyze the different schemes and frameworks separately. In this chapter, different schemes are presented and customized for the Master Planning models described in Sect. 2.2. We begin with schemes for the coordination of general decentralized LP problems (Sect. 4.1) and of one buyer and several suppliers planning based on uncapacitated dynamic lot-sizing models (Sect. 4.2), and derive analytical results about their convergence behavior.

Keywords: Master Problem; Penalty Cost; Order Interval; Cost Change; Inventory Holding (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-02833-5_4

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DOI: 10.1007/978-3-642-02833-5_4

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