Article ID: | iaor2009857 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 7 |
Start Page Number: | 1847 |
End Page Number: | 1868 |
Publication Date: | Jan 2008 |
Journal: | International Journal of Production Research |
Authors: | Wang S.-M., Yang S.-J., Chen J.-C., Wang K.-J |
Keywords: | heuristics: genetic algorithms |
Uncertain and lumpy demand forces capacity planners to maximize the profit of individual factory by simultaneously taking advantage of outsourcing to and/or being outsourced from its supply chain and even competitors. This study develops a resource-planning model of a large manufacturer with two profit-centered factories. The proposed model enables a collaborative integration for resource and demand sharing which is highly attractive to the high-tech industries against the challenges of short product life cycle, intensive capital investment and decreasing marginal profit. Each of the individual factories applies an economic resource-planning model and a genetic algorithm to improve its objective while purchasing extra capacity requirement from its peer factory or selling extra capacity of resources to the others through a negotiation algorithm. This study makes a contribution in successfully building a mutual negotiation model for a set of customer tasks to be realized by the negotiating parties.