A distributed coordination for a single warehouse-multiple retailer problem under private information
- Authors
- Lee, Dong Joo; Jeong, In-Jae
- Issue Date
- May-2010
- Publisher
- ELSEVIER SCIENCE BV
- Keywords
- Distributed coordination; Augmented Lagrangian function; Single warehouse multiple retailer
- Citation
- INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, v.125, no.1, pp.190 - 199
- Indexed
- SCIE
SCOPUS
- Journal Title
- INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
- Volume
- 125
- Number
- 1
- Start Page
- 190
- End Page
- 199
- URI
- https://scholarworks.bwise.kr/hanyang/handle/2021.sw.hanyang/175025
- DOI
- 10.1016/j.ijpe.2010.02.001
- ISSN
- 0925-5273
- Abstract
- In this paper, we consider a distributed coordination for single warehouse and multiple retailer problems. The objective is to minimize the sum of the setup cost and inventory holding cost incurring among warehouse and retailers in a distributed manner. We propose two algorithms based on the alternating direction method (ADM) and diagonal quadratic approximation method (DQAM) that utilize Augmented Lagrangian function and multiplier updating scheme. The ADM-based algorithm solves the problem by communicating partial information between a coordinator, the warehouse and retailers. The DQAM-based algorithm does not require a coordinator. The cooperation to minimize the system-wide cost is performed by the direct communication of the warehouse and retailers. The proposed algorithms guarantee 6% deviation from optimal solution in the worst case. The computational experiments and the comparison with existing decentralized approaches are presented.
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