A grid-based collaborative supply chain with multi-product multi-period production-distribution

A collaborative supply chain seeks to coordinate its members to produce and distribute products along the chain for minimum overall costs to satisfy customer demand. An integrated multi-period, multi-product and multi-stage supply chain model is developed. A collaborative supply chain grid (CSCG) system gathers necessary information on operations and resources from members of the supply chain. It then guides the members on ordering decisions for a minimum overall cost, while continuously re-directing them as new data becomes available. An actual CSCG system has been implemented in a collaborative auto industry with diverse and dynamic membership, yielding an approximately 26% reduction in total supply chain costs.