Study on Optimised Collaboration with Augmented Lagrangian Decomposition Coordination Method under Bounded Information Sharing

Abstract

In our Virtual Enterprise (VE) model, each enterprise autonomously decides production planning based on an original strategic criterion under bounded information sharing as reality. So it is difficult to draw up a globally optimised production plan as a whole. In this study, we propose a methodology based on Augmented Lagrangian Decomposition Coordination (ALDC) and apply it into collaboration mechanism amongst enterprises in VE environment. We analyse this VE model by comparing with other conventional VE models, such as Branch and Bound method based model (BB model) and Contract Net Protocol based model (CNP model).