Economic Aspects of a Resource Sharing Manufacturing Network under Turbulences

Authors

  • Adam Szaller Institute for Computer Science and Control

DOI:

https://doi.org/10.34190/ecmlg.18.1.885

Keywords:

resource sharing, turbulence, financial impact

Abstract

Nowadays, manufacturing companies face more difficulties than ever. Unrest in global supply chains triggered by fluctuating customer demand, raw material shortages and crises (Covid pandemic, global warming, wars) complicate the utilization of production resources necessary for economic success. Also, the rapidly changing environment causes existing production plans to be adapted, which results in order changes, causing additional costs for manufacturers. One solution to cope with these problems is cooperation and sharing resources: requesting capacity from partners when having shortages and offering them temporarily in case of excess capacity.

In this paper, a platform-based resource sharing mechanism is investigated from the economic perspective. In the mechanism, requests and offers are matched by a central platform applying a complex matching logic. The platform provides valid alternatives based on the incoming orders that the requesting company can choose from. Companies are rating each other’s performance after each interaction based on delivery accuracy; choosing between resource offers is made based on the cumulated rating about the offeror and the price of the offer.

Within this paper, the aim is to investigate the resource sharing mechanism from the economic point of view based on an approach to the responsiveness of a supply chain structure to turbulence, to support decision-makers trying to cope with unexpected changes. For this purpose, here the mechanism is briefly introduced, and basic concepts about turbulences in supply chains are also presented. Cost types related to resource sharing manufacturing companies are distinguished, and the model is validated with agent-based simulation. A simulation experiment is performed to investigate the use-case of outsourced jobs having different price levels. Based on the experiment, it can be concluded that there is a price level limit in such a resource sharing federation, under which it is worth it to collaborate with partners by outsourcing certain jobs to them.

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Published

2022-11-04