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A Producer's Allocation Policy Considering Buyers' Demands in the Supply Chain  

Eum, Seung Chul (Dep. of Industrial Engineering, Hanyang University)
Lee, Young Hae (Dep. of Industrial Engineering, Hanyang University)
Jung, Jung Woo (Dep. of Industrial Engineering, Hanyang University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.31, no.3, 2005 , pp. 210-218 More about this Journal
Abstract
In the current global business environment, it is very important how to allocate products from the producer to buyers (or distributors). Sometimes some buyers can order more than pertinent demand due to inappropriate forecasting customers' orders. This is the big obstacle to the efficient allocation of products. If the producer can become aware of buyers' pertinent demand, it is possible to realize the high-level order fulfillment through the effective allocation of products. In this study, a new allocation policy is proposed considering buyers' demands. The backpropagation algorithm, one of algorithms in neural network theory, is used to find pertinent demands from the distributors' orders. In the experiment, an allocation policy considering buyers' demands outperforms previous allocation policies.
Keywords
order fulfillment; backpropagation; allocation policy;
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