Coordination Strategy for Production Planning in Supply Chain Based on Lagrange Relaxation Algorithm

To solve the coordination problem of multi-enterprises supply chain production planning, a coordination and optimization strategy of distributed decision-making based on Lagrange relaxation algorithm is presented. By relaxing the material flow balance constraints among enterprises with the internal price, i.e. Lagrange multipliers, the whole supply chain production planning problem is decomposed into multiple single enterprise production planning sub problems, each of which can make its own production plan through local information. Through iterative update of the internal price for each kind of products provided by enterprises, the supply chain could be coordinated and the nearest optimal solution can be achieved. The simulation experiments show that the method can better solve the multi-enterprise supply chain production planning problem