Distributed Optimization for Supply Chain Planning for Multiple Companies Using Subgradient Method and Consensus Control

Naoto Debuchi, Tatsushi Nishi, Ziang Liu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

With recent liberalization and enlarging of trade among companies, it is necessary to generate an optimal supply chain planning by cooperation and coordination of supply chain planning for multiple companies without sharing sensitive information such as costs and profit among competitive companies. A distributed optimization can solve the optimization problems with limited information. A distributed optimization method using subgradient and consensus control methods has been proposed to solve continuous optimization problems. However, conventional distributed optimization methods using subgradient and consensus control methods cannot be applied to the supply chain planning for multiple companies including 0–1 decision variables. In this paper, we propose a new distributed optimization method for solving the supply chain planning problem for multiple companies by subgradient method and consensus control. By branching the cases 0–1 variables, an optimal solution can be obtained by the enumeration. A method to reduce the computational effort has been developed in the proposed method. From numerical experiments, it is confirmed that we can obtain an optimal solution by the reduction of the computation.

Original languageEnglish
Title of host publicationAdvances in Production Management Systems. Smart Manufacturing and Logistics Systems
Subtitle of host publicationTurning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings
EditorsDuck Young Kim, Gregor von Cieminski, David Romero
PublisherSpringer Science and Business Media Deutschland GmbH
Pages216-223
Number of pages8
ISBN (Print)9783031164101
DOIs
Publication statusPublished - 2022
EventIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022 - Gyeongju, Korea, Republic of
Duration: Sep 25 2022Sep 29 2022

Publication series

NameIFIP Advances in Information and Communication Technology
Volume664 IFIP
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

ConferenceIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022
Country/TerritoryKorea, Republic of
CityGyeongju
Period9/25/229/29/22

Keywords

  • Consensus control
  • Distributed optimization
  • Subgradient method
  • Supply chain planning

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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