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Coordination of supply chain inventory systems with private information

This dissertation considers the problems of coordinating different supply chain
inventory systems with private information under deterministic settings. These systems
studied are characterized by the following properties: (a) each facility in the system has
self decision-making authority, (b) cost parameters of each facility are regarded as
private information that no other facilities in the system have access to, and (c) partial
information is shared among the facilities. Because of the above properties, the existing
approaches for systems with global information may not be applicable. Thus, new
approaches for coordinating supply chain inventory systems with private information are
needed.
This dissertation first studies two two-echelon distribution inventory systems.
Heuristics for finding the replenishment policy of each facility are developed under
global information environment. In turn, the heuristics are modified to solve the
problems with private information. An important characteristic of the heuristics
developed for the private information environment is that they provide the same
solutions as their global information counterpart.
Then, more complex multi-echelon serial and assembly supply chain inventory
systems with private information are studied. The solution approach decomposes the
problem into separate subproblems such that the private information is divided as
required. Global optimality is sought with an iterative procedure in which the
subproblems negotiate the material flows between facilities. At the core of the solution procedure is a node-model that represents a facility and its corresponding private
information. Using the node-model as a building block, other supply chains can be
formed by linking the node-models according to the product and information flows. By
computational experiments, the effect of the private information on the performance of
the supply chain is tested by comparing the proposed approach against existing
heuristics that utilize global information. Experimental results show that the proposed
approach provides comparable results as those of the existing heuristics with global
information.

Identiferoai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/4895
Date25 April 2007
CreatorsChu, Chi-Leung
ContributorsLeon, V. Jorge
PublisherTexas A&M University
Source SetsTexas A and M University
Languageen_US
Detected LanguageEnglish
TypeBook, Thesis, Electronic Dissertation, text
Format808945 bytes, electronic, application/pdf, born digital

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