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Optimizing dynamic supply chain formation in supply mesh using CSET model
Hang Yang; Simon Fong
Source PublicationInformation Systems Frontiers
ABS Journal Level3

A new e-Service model called dynamic supply chain is characterized by their dynamic nature in easily being formed and disbanded with the seamless connectivity provided by e-Marketplace. The new term "supply mesh" was coined to represent this virtual community of companies in which dynamic supply chains, as per project (also known as make-to-order), are formed across different tiers of suppliers. In a supply mesh, a dynamic supply chain can be formed vertically, from the top to the bottom layers, mediating different companies for a project. Companies that are on the same level laterally are usually competitors, and the companies that are linked vertically as supply chains are trading partners. From a global view, the companies that are connected in the supply mesh can be viewed as individual entities that have self-interest. They may compete for survival as well as collaborate with each other for jobs. Given such complex relations the challenge is to find an optimal group of members for a dynamic supply chain in the supply mesh. A multi-agent model called the collaborative single machine earliness/tardiness (CSET) model was recently proposed for the optimal formation of make-to-order supply chains. This paper investigates the possibilities of applying CSET in a supply mesh, and the corresponding allocation schemes are experimentally studied in simulations. One scheme called Cost-driven principle leads to destructive competition while the other one namely Pareto-optimal evolves into a cooperative competition that tries to mutually benefit every participant. The results, based on samples from the U.S. textile industry, show that a cooperative competition scheme is superior in terms of optimal allocation, which obtains maximum satisfaction for all participants. 

KeywordSupply Chain Formation Pareto-optimization Simulation E-marketplace
URLView the original
Indexed BySCIE
WOS Research AreaComputer Science
WOS SubjectComputer Science, Information Systems ; Computer Science, Theory & Methods
WOS IDWOS:000322901700005
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Cited Times [WOS]:1   [WOS Record]     [Related Records in WOS]
Document TypeJournal article
CollectionUniversity of Macau
Corresponding AuthorSimon Fong
AffiliationFaculty of Science and Technology, University of Macau, Av. Padre Tomás Pereira, Taipa, Macau SAR
First Author AffilicationFaculty of Science and Technology
Corresponding Author AffilicationFaculty of Science and Technology
Recommended Citation
GB/T 7714
Hang Yang,Simon Fong. Optimizing dynamic supply chain formation in supply mesh using CSET model[J]. Information Systems Frontiers,2012,15(4):569-588.
APA Hang Yang,&Simon Fong.(2012).Optimizing dynamic supply chain formation in supply mesh using CSET model.Information Systems Frontiers,15(4),569-588.
MLA Hang Yang,et al."Optimizing dynamic supply chain formation in supply mesh using CSET model".Information Systems Frontiers 15.4(2012):569-588.
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