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Coordinating decentralized linear programs by exchange of primal information

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  • Albrecht, Martin
  • Stadtler, Hartmut

Abstract

We present a scheme for coordinating decentralized parties that share central resources but hold private information about their decision problems modeled as linear programs. This setting is of particular importance for supply chains, in which the plans of independent, often legally separated, parties have to be synchronized. The scheme is based on an iterative generation and exchange of proposals regarding the parties’ input to or withdrawal from the central resources (i.e. primal information). We prove that the system-wide optimum can be identified in a finite number of steps. A simple numerical example illustrates the information exchange and the models involved when coordinating a two-stage supply chain.

Suggested Citation

  • Albrecht, Martin & Stadtler, Hartmut, 2015. "Coordinating decentralized linear programs by exchange of primal information," European Journal of Operational Research, Elsevier, vol. 247(3), pages 788-796.
    • Handle: RePEc:eee:ejores:v:247:y:2015:i:3:p:788-796
    DOI: 10.1016/j.ejor.2015.06.045
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    2. T. V. S. R. K. Prasad & Kolla Srinivas & C. Srinivas, 2020. "Investigations into control strategies of supply chain planning models: a case study," OPSEARCH, Springer;Operational Research Society of India, vol. 57(3), pages 874-907, September.
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