Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling

Chengbin Chu; Eric E.   Longomo; Xiang Song; Djamila Ouelhadj

doi:10.1109/CoASE.2014.6899405

Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling

Chengbin Chu, Eric E. Longomo, Xiang Song, Djamila Ouelhadj

Ecole Centrale Paris

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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Abstract

This research paper builds on existing knowledge in the field of parametric Linear Programming (pLP) and proposes a continuous mathematical model that considers a multi-period Quantity Flexibility (QF) contract between a car manufacturer (buyer) and external parts supplying company. The supplier periodically delivers parts to the car manufacturer as agreed in the contract. Due to the uncertainty of the demand for parts, the car manufacturer -in concert with the supplier-aims to develop a policy -at strategic level, that determines the optimal nominal order quantity (Q) and variation rate (β) underpinning the contract that ensures the actual order quantity satisfies the actual demand and the total cost is minimised over the contract length. The behaviour of the mathematical model has been examined in order to establish its feasibility and convexity, consequently guaranteeing an optimal solution. Simulations have been carried out to evaluate the relationship of the total cost with respect to the variation rate and the nominal quantity ordered.

Original language	English
Title of host publication	Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering
Publisher	Institute of Electrical and Electronics Engineers Inc.
Pages	704-709
Number of pages	5
ISBN (Print)	978-1-4799-5283-0, 978-1-4799-5284-7
DOIs	https://doi.org/10.1109/CoASE.2014.6899405
Publication status	Published - Aug 2014
Event	10th International Conference on Automation Science and Engineering - Taipei, Taiwan, Province of China Duration: 18 Aug 2014 → 22 Aug 2014 http://www.case2014.org/

Publication series

Name	International Conference on Automation Science and Engineering
Publisher	IEEE
ISSN (Print)	2161-8070

Conference

Conference	10th International Conference on Automation Science and Engineering
Abbreviated title	CASE 2014
Country/Territory	Taiwan, Province of China
City	Taipei
Period	18/08/14 → 22/08/14
Internet address	http://www.case2014.org/

Keywords

Contract
Flexibility analysis
Modelling

Access to Document

10.1109/CoASE.2014.6899405

Flexibility analysis on a supply chain contract
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Accepted author manuscript (Post-print), 696 KB

Cite this

Chu, C., Longomo, E. E., Song, X., & Ouelhadj, D. (2014). Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling. In Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering (pp. 704-709). (International Conference on Automation Science and Engineering). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/CoASE.2014.6899405

Chu, Chengbin ; Longomo, Eric E. ; Song, Xiang et al. / Flexibility analysis on a supply chain contract using a parametric Linear Programming model : flexibility analysis of contract modelling. Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering. Institute of Electrical and Electronics Engineers Inc., 2014. pp. 704-709 (International Conference on Automation Science and Engineering).

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abstract = "This research paper builds on existing knowledge in the field of parametric Linear Programming (pLP) and proposes a continuous mathematical model that considers a multi-period Quantity Flexibility (QF) contract between a car manufacturer (buyer) and external parts supplying company. The supplier periodically delivers parts to the car manufacturer as agreed in the contract. Due to the uncertainty of the demand for parts, the car manufacturer -in concert with the supplier-aims to develop a policy -at strategic level, that determines the optimal nominal order quantity (Q) and variation rate (β) underpinning the contract that ensures the actual order quantity satisfies the actual demand and the total cost is minimised over the contract length. The behaviour of the mathematical model has been examined in order to establish its feasibility and convexity, consequently guaranteeing an optimal solution. Simulations have been carried out to evaluate the relationship of the total cost with respect to the variation rate and the nominal quantity ordered.",

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author = "Chengbin Chu and Longomo, {Eric E.} and Xiang Song and Djamila Ouelhadj",

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Chu, C, Longomo, EE, Song, X & Ouelhadj, D 2014, Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling. in Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering. International Conference on Automation Science and Engineering, Institute of Electrical and Electronics Engineers Inc., pp. 704-709, 10th International Conference on Automation Science and Engineering, Taipei, Taiwan, Province of China, 18/08/14. https://doi.org/10.1109/CoASE.2014.6899405

Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling. / Chu, Chengbin; Longomo, Eric E. ; Song, Xiang et al.
Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering. Institute of Electrical and Electronics Engineers Inc., 2014. p. 704-709 (International Conference on Automation Science and Engineering).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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AB - This research paper builds on existing knowledge in the field of parametric Linear Programming (pLP) and proposes a continuous mathematical model that considers a multi-period Quantity Flexibility (QF) contract between a car manufacturer (buyer) and external parts supplying company. The supplier periodically delivers parts to the car manufacturer as agreed in the contract. Due to the uncertainty of the demand for parts, the car manufacturer -in concert with the supplier-aims to develop a policy -at strategic level, that determines the optimal nominal order quantity (Q) and variation rate (β) underpinning the contract that ensures the actual order quantity satisfies the actual demand and the total cost is minimised over the contract length. The behaviour of the mathematical model has been examined in order to establish its feasibility and convexity, consequently guaranteeing an optimal solution. Simulations have been carried out to evaluate the relationship of the total cost with respect to the variation rate and the nominal quantity ordered.

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KW - Modelling

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Chu C, Longomo EE, Song X , Ouelhadj D. Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling. In Proceedings of the 2014 IEEE International Conference on Automation Science and Engineering. Institute of Electrical and Electronics Engineers Inc. 2014. p. 704-709. (International Conference on Automation Science and Engineering). doi: 10.1109/CoASE.2014.6899405

Flexibility analysis on a supply chain contract using a parametric Linear Programming model: flexibility analysis of contract modelling

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