A Negotiation-Based Capacity-Planning Model

Abstract

Capacity planning deals with the conflicts among multiple factories. This study employs a negotiation framework to allow autonomous budget allocation among factories and make full use of manufacturing resources capacity scattered over individual factories. Factories are modeled as intelligent entities that exchange offer messages with one another. This study investigates the effects of the attitudes of a factory, while it bargains with other factories over the budget. Furthermore, individual factories apply a capacity-planning optimization model and a genetic algorithm to revise their capacity plan right after receiving new messages from other factories. This paper makes a contribution in successfully building a negotiation-based capacity-planning model applied to a multiple-factory environment. The outcome of the experiments shows the efficiency of the proposed model and the effect of different negotiation attitudes.Index Terms-Autonomous negotiation, capacity planning. NOMENCLATURE NOTATIONS NotationsDefinition F p Capital in the end of period p. F p ∈ R + . p ∈ P , a set of periods over the planning horizon. I p Capital interest rate in period p. e m Unit cost of purchasing a resource type m. d m Unit salvage value of phasing out a resource type m. d m can be a positive or negative value. K m Number of in-house resource type m during the planning horizon. K m ∈ Z + . K 0,m Number of resource type m in the initial period. X p,m ,z Number of resource type m associated with resource acquisition alternative z in period p. X p,m ,z ∈ Z + . c m ,j Product-resource capabilities for product j associated with main resource type m. This is a 0-1 parameter. c m ,j = 1 if main resource type m can conduct product j; c m ,j = 0 otherwise. Q p,m ,j Quantity of product j produced by main resource type m in period p. Q p,m ,j ∈ Z + . r m ,j Theoretical throughput of product j conducted by resource type m. Working hours of resource type m in period p. y p,m Target utilization of resource type m in period p. c m ,m 2Resource configuration capabilities regarded with main resource type m and auxiliary resource type m2. This is a 0-1 parameter. c m ,m 2 = 1 if auxiliary resource type m2 can cooperate with main resource m, c m ,m 2 = 0 otherwise. Q p,m 2,j