Winsper, Michael and Chli, Maria (2013). Decentralized supply chain formation using max-sum loopy belief propagation. Computational Intelligence, 29 (2), pp. 281-309.
Abstract
Supply chain formation is the process by which a set of producers within a network determine the subset of these producers able to form a chain to supply goods to one or more consumers at the lowest cost. This problem has been tackled in a number of ways, including auctions, negotiations, and argumentation-based approaches. In this paper we show how this problem can be cast as an optimization of a pairwise cost function. Optimizing this class of energy functions is NP-hard but efficient approximations to the global minimum can be obtained using loopy belief propagation (LBP). Here we detail a max-sum LBP-based approach to the supply chain formation problem, involving decentralized message-passing between supply chain participants. Our approach is evaluated against a well-known decentralized double-auction method and an optimal centralized technique, showing several improvements on the auction method: it obtains better solutions for most network instances which allow for competitive equilibrium (Competitive equilibrium in Walsh and Wellman is a set of producer costs which permits a Pareto optimal state in which agents in the allocation receive non-negative surplus and agents not in the allocation would acquire non-positive surplus by participating in the supply chain) while also optimally solving problems where no competitive equilibrium exists, for which the double-auction method frequently produces inefficient solutions. © 2012 Wiley Periodicals, Inc.
Publication DOI: | https://doi.org/10.1111/j.1467-8640.2012.00446.x |
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Divisions: | ?? 50811700Jl ?? |
Additional Information: | Winsper, M. , & Chli, M. (2012). Decentralized supply chain formation using max-sum loopy belief propagation. Computational intelligence, 29(2), which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8640.2012.00446.x/abstract |
Uncontrolled Keywords: | loopy belief propagation,max-sum algorithm,supply chain formation,Artificial Intelligence,Computational Mathematics |
Publication ISSN: | 1467-8640 |
Last Modified: | 06 Aug 2024 07:16 |
Date Deposited: | 22 Jul 2013 14:45 |
Full Text Link: | |
Related URLs: |
http://www.scop ... tnerID=8YFLogxK
(Scopus URL) http://onlineli ... 0446.x/abstract (Publisher URL) |
PURE Output Type: | Article |
Published Date: | 2013-05 |
Published Online Date: | 2012-07-04 |
Authors: |
Winsper, Michael
Chli, Maria ( ![]() |