Integrated planning in electronic marketplace embedded supply chains

Abstract

In this paper we develop a quadratic programming model for integrated supply chain planning in an electronics-manufacturing environment supported by digital marketplaces. We consider a scenario where a sub-assembly manufacturer procures components from suppliers through an exchange and sells its manufactured sub-assemblies through another exchange. The model addresses for the sub-assembly manufacturer the issue of pricing and customer selection in the sub-assembly marketplace for maximum revenue and partner selection within the components procurement marketplace for minimal cost of manufacturing and delivery. Simultaneously, the model determines optimal schedules that synchronize activities across the supply chain.