Resumen
AbstractA mechanism for supply chain coordination models the entire supply chain with multiple members in four stages to satisfy customer demand with minimum total costs. Previous coordination mechanisms research applied restrictive assumptions on the number in the supply chain stages and members in each stage, disallowing a case of multi-product. Flow networks concept is proposes as a coordination mechanism for supply chains with multiple members, multiple stages and multi-products, where each product is composed of several basic components. A supply chain optimizer (SCO), actually an e-hub, gathers supply chain state information. After necessary computations, it informs members of the supply chain of optimal decisions for their orders. Results from sample cases using the mechanism show above 20% reduction in total costs of the supply chain.