Supply Chain Coordination Mechanisms New Approaches for Collaborativ

Integrated supply chain planning is well understood by theory and widely applied in practice – however, only with respect to intra-organisational supply chains. In inter-organisational supply chains, an additional, yet unresolved problem arises: due to co

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Martin Albrecht

Supply Chain Coordination Mechanisms New Approaches for Collaborative Planning

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Dr. Martin Albrecht PAUL HARTMANN AG [email protected]

ISSN 0075-8442 ISBN 978-3-642-02832-8 e-ISBN 978-3-642-02833-5 DOI 10.1007/978-3-642-02833-5 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2009931327 c Springer-Verlag Berlin Heidelberg 2010  This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: SPi Publisher Services Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

For Rita and Amalia Isabel

Foreword

Inter-organizational supply chains have to coordinate their material, information, and financial flows efficiently to be competitive. However, legally independent supply chain (SC) partners are often reluctant to share critical data such as costs or capacity utilization, which is a prerequisite for central planning or hierarchical planning – the planning paradigm of today’s Advanced Planning Systems (APS). Consequently, concepts for collaborative planning are needed, considering a joint decision making process for aligning plans of individual SC members with the aim of achieving coordination in the light of information asymmetry. This is the starting point and challenge of the PhD thesis of Martin Albrecht because little is known about how to design a solution for this difficult decision problem. Starting from an initial solution – that may be generated by upstream planning – improved solutions are looked for. This is achieved by computer-supported negotiations, i.e., an exchange of different order proposals within the planning interval among the SC partners involved, where partners are free to accept or reject proposals. One challenge in this negotiation process is to find new proposals and counterproposals which have a good chance of acceptance while improving the competitive position of a SC as a whole. Here, Albrecht devised new generic coordination schemes for planning tasks which can be modeled either by Linear Programming (LP) or Mixed Integer Linear Programming. For the LP case finite convergence to the optimum has been proved. While previous research on collaborative planning stopped with a clever coordina