Partner selection and synchronized planning in dynamic manufacturing networks

In this paper, we develop a mixed-integer programming model for integrated partner selection and scheduling in an Internet-enabled dynamic manufacturing network environment. We assume that all stakeholders in the supply chain (SC) share information on their capacities, schedules, and cost structures. Based on this information, the model addresses the issue of partner selection and SC synchronization for profit maximization, while considering various manufacturing and logistics constraints. Furthermore, we study the dynamic configuration of the SC and its performance with respect to different buyer locations, different order patterns, and the utilization of transshipment hubs. The model is solved using optimization tools from ILOG, located in Paris, France, and Mountain View, CA.