IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v171y2016ip4p495-506.html
   My bibliography  Save this article

Real-time optimization and control mechanisms for collaborative demand and capacity sharing

Author

Listed:
  • Moghaddam, Mohsen
  • Nof, Shimon Y.

Abstract

This work presents a new mechanism for real-time resource allocation, order administration, and process monitoring in Collaborative Networked Enterprises (CNE). The motivation is to mitigate the uncertainties and risks caused by arbitrary nature of customer orders, dynamic changes in demand patterns, and unforeseen supply disruptions. Enterprise collaboration is enabled by Demand and Capacity Sharing (DCS) among enterprises considering four decision criteria: (a) Total cost; (b) Demand fulfillment; (c) Resource utilization; and (d) CNE stability. A Task Administration Protocol (TAP) is designed for priority-based allocation/re-allocation of resources and real-time monitoring of DCS processes. The TAP is enhanced with a Predictive Best Matching Protocol (PBMP), which optimizes allocation decisions in real-time while taking into account potential future events. The new Real-Time Optimization (RTO) mechanism is proven in experiments to be an advantageous solution for mitigating undesirable impacts of uncertainty and dynamicity on the CNE performance with respect to the four undertaken decision criteria.

Suggested Citation

  • Moghaddam, Mohsen & Nof, Shimon Y., 2016. "Real-time optimization and control mechanisms for collaborative demand and capacity sharing," International Journal of Production Economics, Elsevier, vol. 171(P4), pages 495-506.
    • Handle: RePEc:eee:proeco:v:171:y:2016:i:p4:p:495-506
    DOI: 10.1016/j.ijpe.2015.07.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315003424
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2015.07.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kutanoglu, Erhan & Mahajan, Mohit, 2009. "An inventory sharing and allocation method for a multi-location service parts logistics network with time-based service levels," European Journal of Operational Research, Elsevier, vol. 194(3), pages 728-742, May.
    2. Sven Axsäter & Christian Howard & Johan Marklund, 2013. "A distribution inventory model with transshipments from a support warehouse," IISE Transactions, Taylor & Francis Journals, vol. 45(3), pages 309-322.
    3. Tiacci, Lorenzo & Saetta, Stefano, 2011. "Reducing the mean supply delay of spare parts using lateral transshipments policies," International Journal of Production Economics, Elsevier, vol. 133(1), pages 182-191, September.
    4. Sang Ko, Hoo & Nof, Shimon Y., 2012. "Design and application of task administration protocols for collaborative production and service systems," International Journal of Production Economics, Elsevier, vol. 135(1), pages 177-189.
    5. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    6. Yoon, Sang Won & Nof, Shimon Y., 2011. "Affiliation/dissociation decision models in demand and capacity sharing collaborative network," International Journal of Production Economics, Elsevier, vol. 130(2), pages 135-143, April.
    7. Olsson, Fredrik, 2009. "Optimal policies for inventory systems with lateral transshipments," International Journal of Production Economics, Elsevier, vol. 118(1), pages 175-184, March.
    8. Lee, Young Hae & Jung, Jung Woo & Jeon, Young Sang, 2007. "An effective lateral transshipment policy to improve service level in the supply chain," International Journal of Production Economics, Elsevier, vol. 106(1), pages 115-126, March.
    9. Moghaddam, Mohsen & Nof, Shimon Y., 2014. "Combined demand and capacity sharing with best matching decisions in enterprise collaboration," International Journal of Production Economics, Elsevier, vol. 148(C), pages 93-109.
    10. Paterson, Colin & Teunter, Ruud & Glazebrook, Kevin, 2012. "Enhanced lateral transshipments in a multi-location inventory system," European Journal of Operational Research, Elsevier, vol. 221(2), pages 317-327.
    11. Burton, Jonathan & Banerjee, Avijit, 2005. "Cost-parametric analysis of lateral transshipment policies in two-echelon supply chains," International Journal of Production Economics, Elsevier, vol. 93(1), pages 169-178, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yilmaz, Ibrahim & Yoon, Sang Won & Seok, Hyesung, 2017. "A framework and algorithm for fair demand and capacity sharing in collaborative networks," International Journal of Production Economics, Elsevier, vol. 193(C), pages 137-147.
    2. Bakker, Hannah & Bindewald, Viktor & Dunke, Fabian & Nickel, Stefan, 2023. "Logistics for diagnostic testing: An adaptive decision-support framework," European Journal of Operational Research, Elsevier, vol. 311(3), pages 1120-1133.
    3. Lohmer, Jacob & Bugert, Niels & Lasch, Rainer, 2020. "Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study," International Journal of Production Economics, Elsevier, vol. 228(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moghaddam, Mohsen & Nof, Shimon Y., 2014. "Combined demand and capacity sharing with best matching decisions in enterprise collaboration," International Journal of Production Economics, Elsevier, vol. 148(C), pages 93-109.
    2. García-Benito, Juan Carlos & Martín-Peña, María-Luz, 2021. "A redistribution model with minimum backorders of spare parts: A proposal for the defence sector," European Journal of Operational Research, Elsevier, vol. 291(1), pages 178-193.
    3. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    4. Hochmuth, Christian A. & Köchel, Peter, 2012. "How to order and transship in multi-location inventory systems: The simulation optimization approach," International Journal of Production Economics, Elsevier, vol. 140(2), pages 646-654.
    5. Zümbül Atan & Lawrence V. Snyder & George R. Wilson, 2018. "Transshipment policies for systems with multiple retailers and two demand classes," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(1), pages 159-186, January.
    6. Tai, Allen H. & Ching, Wai-Ki, 2014. "Optimal inventory policy for a Markovian two-echelon system with returns and lateral transshipment," International Journal of Production Economics, Elsevier, vol. 151(C), pages 48-55.
    7. Dijkstra, Arjan S. & Van der Heide, Gerlach & Roodbergen, Kees Jan, 2019. "Transshipments of cross-channel returned products," International Journal of Production Economics, Elsevier, vol. 209(C), pages 70-77.
    8. Guangyuan Yang & Rommert Dekker, 2010. "Service Parts Inventory Control with Lateral Transshipment that takes Time," Tinbergen Institute Discussion Papers 10-025/4, Tinbergen Institute, revised 10 Mar 2010.
    9. Peres, Igor T. & Repolho, Hugo M. & Martinelli, Rafael & Monteiro, Nathália J., 2017. "Optimization in inventory-routing problem with planned transshipment: A case study in the retail industry," International Journal of Production Economics, Elsevier, vol. 193(C), pages 748-756.
    10. van Wingerden, E. & Tan, T. & Van Houtum, G.J., 2019. "The impact of an emergency warehouse in a two-echelon spare parts network," European Journal of Operational Research, Elsevier, vol. 276(3), pages 983-997.
    11. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    12. Mirzapour Al-e-hashem, S.M.J. & Rekik, Yacine, 2014. "Multi-product multi-period Inventory Routing Problem with a transshipment option: A green approach," International Journal of Production Economics, Elsevier, vol. 157(C), pages 80-88.
    13. Topan, E. & Eruguz, A.S. & Ma, W. & van der Heijden, M.C. & Dekker, R., 2020. "A review of operational spare parts service logistics in service control towers," European Journal of Operational Research, Elsevier, vol. 282(2), pages 401-414.
    14. Yang, Guangyuan & Dekker, Rommert & Gabor, Adriana F. & Axsäter, Sven, 2013. "Service parts inventory control with lateral transshipment and pipeline stockflexibility," International Journal of Production Economics, Elsevier, vol. 142(2), pages 278-289.
    15. Meissner, Joern & Senicheva, Olga V., 2018. "Approximate dynamic programming for lateral transshipment problems in multi-location inventory systems," European Journal of Operational Research, Elsevier, vol. 265(1), pages 49-64.
    16. Dehghani, Maryam & Abbasi, Babak & Oliveira, Fabricio, 2021. "Proactive transshipment in the blood supply chain: A stochastic programming approach," Omega, Elsevier, vol. 98(C).
    17. Shao, Xiao-Feng, 2018. "Production disruption, compensation, and transshipment policies," Omega, Elsevier, vol. 74(C), pages 37-49.
    18. Naderi, Siamak & Kilic, Kemal & Dasci, Abdullah, 2020. "A deterministic model for the transshipment problem of a fast fashion retailer under capacity constraints," International Journal of Production Economics, Elsevier, vol. 227(C).
    19. Summerfield, Nichalin S. & Dror, Moshe, 2012. "Stochastic programming for decentralized newsvendor with transshipment," International Journal of Production Economics, Elsevier, vol. 137(2), pages 292-303.
    20. Griffin, Emily C. & Keskin, Burcu B. & Allaway, Arthur W., 2023. "Clustering retail stores for inventory transshipment," European Journal of Operational Research, Elsevier, vol. 311(2), pages 690-707.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:171:y:2016:i:p4:p:495-506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.