Multi-agent based supply chain modelling with dynamic environment

Supply chain management (SCM) is not always concerned with optimal solutions conventionally in terms of product allocation. Virtual market based supply chain operation solves the product allocation problem by distributing the scheduled resources based on the agent interactions in the market. We formulate supply chain model as a discrete resource allocation problem under dynamic environment, and demonstrate the applicability of the virtual market concept to this framework. The proposed algorithm facilitates sophisticated SCM under dynamic conditions. (C) 2003 Elsevier B.V. All rights reserved.