2171. Decentralised lot sizing: Collaboration and smart contracting
Invited abstract in session TA-10: Fulfillment Operations I, stream Supply Chain Management and Production.
Thursday, 8:45-10:15Room: H16
Authors (first author is the speaker)
| 1. | Anton Klymenko
|
| Production, energy, and environmental management, University of Klagenfurt | |
| 2. | Margaretha Gansterer
|
| Department of Operations, Energy and Environmental Management, University of Klagenfurt |
Abstract
Collaborative lot sizing usually relies on a centralised decision-maker to reap the benefits of joint operations. While this often leads to optimal results, concerns about transparency and dependency prevent agents from working together in practice. We aim to explore an alternative approach to decentralisation in lot sizing using smart contract auctions. We develop and compare two models: a centralised optimiser that achieves the best possible objective value and a decentralised mechanism where agents submit self-generated bids. An off-chain combinatorial algorithm determines the optimal allocation, and the results are published on-chain via smart contracts to ensure transparency and auditability. We also investigate the role of smart contracts in contracting for lot sizing. Preliminary results suggest that while the decentralised model worsens the objective value, increased incentives for collaboration can compensate for this trade-off. Based on a computational study, the potential of smart contracts to enable dynamic real-time pricing and enhance transparency is analysed.
Keywords
- Supply Chain Management
Status: accepted
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