Decision-Support for Optimizing Supply Chain Formation Based on CSET Model

Abstract

Supply chain formation problem is one of the important research topics in e-Commence. In an e-Marketplace where buyers and sellers meet and trade online, dynamic supply chains can be formed among them by mediating agents. SET and CSET are two typical make-to-order supply chain models. CSET represents a scenario that has a central authority in charge of the formation, management and dissolution of a sup-ply chain. The principal authority selects the partners under certain principles which may either aim for maximizing profits of the whole supply chain or for ensuring every partner to re-ceive a job for communal prosperity. In SET, every supply chain partner uses local knowledge to compete for jobs at each supply chain level. We have implemented a Java-based simu-lator for simulating the process of dynamic supply chain for-mation. The simulator can operate in both modes whose results may be useful in decision-support in supply chain planning.