A modelling and optimization procedure for networks of firms

Abstract

This paper presents a modelling and optimization procedure to assign customers' orders among the partners of a network of firms. The proposed procedure takes into account both kinds of criteria: short-term and long-term criteria. Short-term criteria such as cost, quality, and lead time are customer oriented. However, long-term criteria such as knowledge acquisition and competency development are ‘network of firms’ oriented. The proposed procedure is based on a set of modelling and optimization concepts.

Keywords:

• Networks
• Learning processes
• Optimization problems
• Order allocation
• Modelling procedure
• Multi-criteria

Notes

¹Acquisition of know-how and skills constitutes a major goal of cooperation between manufacturers (Hannoun and Guerrier 1996).