Optimal Resource Allocation in Supply Network with Competitive Market Concept
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Date
2007
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Publisher
CIRP International Seminar on Manufacturing Systems, University of Liverpool, UK
Abstract
We propose a competitive market-based model which uses price mechanism in an
economy to determine an optimal allocation of resources among a set of trading
agents. A supply network is represented by a set of production agents, which make
use of the resources available to them in the market to produce an output defined
by their technologies and demand agents seeking to maximize returns based on
manufacturing budget. We take into consideration, changes in quantity of primary
production factors – capital and labour – at facility locations. The resource
allocation table obtained from simulation is a measure of value of market resources
and facility capacities in the supply network.
Description
Keywords
Optimal Resource Allocation, Competitive Market, Supply Network