Adaptive Network Production by Collaborative Demand and Capacity Management

A Decentralized and Collaborative Approach for Inter-organizational Networks

JournalIndustrie Management
Issue Volume 27, 2011, Edition 3, Pages 25-28
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Abstract

The article deals with the topic of demand and capacity management in inter-organizational production networks. It addresses the question how firms can coordinate build-up as well as reduction of the capacities of their production resources. For this purpose a decentralized negotiation-based coordination mechanism is presented. By this production networks are enabled to synchronize their capacities without the help of a central coordinator. The coordinating effect of the proposed decentralized planning approach was proven also in comparison to existing centralized network planning methods.

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