A coordination mechanism for rolling horizon planning in supply networks

We model planning in a supply network as a distributed effort for matching future demand with supply on a rolling horizon, by relying on asymmetric and in part uncertain information. For achieving high service level and low overall costs throughout the network there is a need of managing the intentions and interactions of the partners. We present a novel coordination mechanism where sharing information truthfully and planning local production optimally serve both system-wide and individual objectives. The work is nested in practice: application examples are taken from the production of customized mass products. (C) 2008 CIRP.