Coordinating Supply Chain Agents Under Shared Inventory and Capacity Constraints

Authors

  • SACHIDANANDA SINGH Senior Engineering Manager, Hims & Hers, USA. Author

DOI:

https://doi.org/10.64137/31080030/IJFEMS-V2I3P113

Keywords:

Multi-Agent Systems, Supply Chain Coordination, Shared Inventory, Capacity Constraints, Resource Allocation, Information Sharing, Bullwhip Effect, Inventory Management, M5 Dataset

Abstract

Software agents acting for stores, a Distribution Centre (DC) and a plant share resources, and when their orders exceed supply, the rule that resolves the conflict shapes cost and service. This paper formulates coordination under four shared resources, namely DC stock, outbound transport, DC storage space and production capacity and proposes a coordination layer that aggregates agent state, detects conflicts, allocates scarce resources to equalise projected stock-out risk, and checks planned production against storage space. The layer is evaluated in a three-stage simulation driven by the real daily sales of 50 products per sample in ten Walmart stores (M5 data), over 20 samples, tuned on 2014 and tested on 536 later days. Proportional rationing cost 18.6% less than serving agents first come, first served. Echelon ordering on shared sales data cost 8.6% more, mainly because stock stranded at one store could not serve another. With stores merged, it cost 4.4% less. The coordination layer matched proportional rationing when capacity was slack and cost 4.7% to 11.9% less when production or transport ran at 95% to 98% utilisation, and it kept the fill rate 1.7 points higher during a production disruption. Balanced allocation drove most of these gains. The storage check helped only when transport was the bottleneck and raised cost when storage was tight, so balanced allocation without it was the best configuration in all other scenarios. Conflict-aware allocation pays off where resources run near their limits, and hard constraint checks must weigh the cost of what they prevent.

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Published

2026-09-11

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How to Cite

Coordinating Supply Chain Agents Under Shared Inventory and Capacity Constraints. (2026). International Journal of Finance, Economics, and Management Studies, 2(3), 111-123. https://doi.org/10.64137/31080030/IJFEMS-V2I3P113