An autonomous decentralized supply chain planning system for multi-stage production processes

In this paper, we propose an autonomous decentralized optimization system for multi-stage production processes. The proposed system consists of a Material Requirement Planning subsystem, a Distribution Planning subsystem and Decentralized Scheduling subsystems belonging to each production stage that constitute the entire plant. In the proposed system, each subsystem repeats both optimization of the schedule at each subsystem and data exchange among the subsystems. Computational results demonstrate that the results of the proposed planning system are superior to those of the hierarchical planning system, despite the fact that the proposed system has wide flexibility for adding the constraints and modifying the criterion of performance evaluation.This revised version was published in June 2005 with corrected page numbers.