Optimization and parallel allocation of cross-chain orders in cluster supply chain with Lagrange algorithm

To research the cooperative processing of customer orders between supply chains, the condition and the basic model of orders allocation were constructed by considering the cluster supply chain consisted of two parallel single chains. On this basis, the extended parallel allocation model of cross-chain orders was constructed by considering the reality of inter-chain horizontal cooperation, which was used to process the cross-chain orders of exceeded single-chains' capacities, and Lagrange algorithm was used to solve this model. Simulation analysis showed that the opportunity cost of refused orders factor and cross-chain orders manufactured cost factor had significant impacts on orders' decisions, and there was a critical point in the combinations of those two factors. Through the combinations, the cluster supply chain could design the acceptance decisions and production schedules of priority orders and cross-chain orders, thus the customers' satisfaction and the cluster supply chain's total profits achieved to the best situations. ©, 2015, CIMS. All right reserved.