Collaborative planning with dynamic supply loops

The paper presents a generic collaboration scheme for supply networks that is based on practical assumptions motivated by the automotive industry. Primarily, it is decentralized, allows autonomous decision making at the partners, and requires a relatively simple information exchange between immediate partners in a supply chain. Within this scheme called Dynamic Supply Loops (DSL), it is possible to balance the benefit of coordination between the partners. Simulation results on a multi-echelon model show that the DSL approach outperforms traditional upstream planning and facilitates coordination