COLLABORATIVE SCHEDULING MODEL FOR SUPPLY-HUB MANAGEMENT

Supply-hubs, supported by information sharing technologies, are being used by contract manufacturers in hi-tech industries to streamline their supply-side inventory management, in response to shortening product lifecycles and the necessity of configuring goods to order. In this paper, we develop a linear programming model for integrated planning and scheduling of supply hub activities. We assume that all stakeholders in the supply hub share information on their capacities, schedules and cost structures. Based on this information the model addresses the issue of production and delivery scheduling, for the manufacturer and its suppliers, for optimal profit. The model was solved using optimization tools provided by ILOG.