Abstract
Nowadays it is not enough to supply products based on customer's preference, and both manufacturers and distributors must have excellent order fulfillment. Supply chain management (SCM) is a concept to facilitate effective product/cash flow control in global environment, and improving SCM is very important for increasing competitive position and profitability. Product allocation management in SCM is conventionally based on simple Theory of Constraints (TOC) concept, but it is not always provide pareto-optimal solutions. Market mechanism solves the product distribution problem by allocating the scheduled resources according to market prices. We formulate SCM system models as a discrete resource allocation problem, and demonstrate the applicability of market economics analysis to this framework. The proposed algorithm facilitates sophisticated product allocation system, which conducts pareto-optimal solution in the resource allocation problem.
