How Advanced Optimization Models Drive Productivity Across Interconnected Business Networks

Dr. Cristian Durán, a faculty member in the Department of Industrial Engineering, is leading a Fondecyt Iniciación 2026 project that develops mathematical models and algorithms to improve production planning in networks of companies that operate through industrial digital platforms. The initiative is supported by Dicyt-Usach.

Factory workers in protective gear processing food on assembly line.

In the face of scenarios marked by shifts in demand, logistical difficulties, and challenges in coordination among suppliers, new ways of organizing production have emerged, such as the Manufacturing-as-a-Service (MaaS) model, which allows different companies to share production capacity through digital platforms.

These platforms connect companies that need to produce with others that have available capacity, facilitating the allocation of orders in a more flexible and efficient manner. In other words, if a company receives more orders than it can fulfill, it can divert part of its production to another company and coordinate the entire process digitally, creating a dynamic network in which different suppliers can participate as needed.

The main challenge lies in decision-making, as multiple stakeholders with differing interests interact on these platforms: while customers seek speed and lower costs, suppliers aim to maximize their profits. This makes coordinating production a complex task, especially since these decisions must be made quickly, simultaneously, and in a constantly changing environment.

To address this issue, through a Fondecyt Iniciación grant, Dr. Cristian Durán, a faculty member in the Department of Industrial Engineering at the University of Santiago, is focusing on developing optimization models and algorithms that enable these decisions to be made more efficiently, improving order allocation, coordination among suppliers, and the responsiveness of these production networks to changing scenarios.

“Today, companies can rely on others for production, which allows them to be more flexible and respond better to unforeseen events. However, this system also creates complex challenges, such as deciding which supplier fulfills each order, when, and based on which criteria—cost, time, or quality. The challenge lies precisely in making these decisions systematically, considering multiple factors simultaneously—something that cannot be resolved intuitively,” explained the researcher.

Usach has partnered with IMT Atlantique, a leading French engineering university in Nantes, on a three-year research project featuring hands-on training for postgraduate master’s and PhD students. The initiative will progressively advance the modeling and analysis of complex production networks through multi-stage research phases.

The research begins by developing a foundational model for efficient order allocation. It then expands to capture complex supply chain decision-making, such as supplier acceptance or rejection of requests, before advancing to dynamic scenarios that incorporate real-time price fluctuations driven by market demand and evolving system conditions.

Through computer simulations of complex production environments, the project evaluates inter-company network performance. This framework enables researchers to test and improve delivery schedules, resource efficiency, and operational task distribution.

“These types of platforms are still under development internationally, especially in Europe, where various initiatives aim to implement this model in industry," says Dr. Durán. "In this context, the research is positioned in an emerging field, contributing to the generation of knowledge and tools that could be used in the future.”

At the national level, this type of research opens up opportunities for SMEs and regional companies to access production capacity without major investments, thereby strengthening the productivity and competitiveness of the production system.

“This project aims to have an impact on how industries operate, moving toward more flexible and resilient production systems capable of adapting to new environmental conditions,” concluded Dr. Christian Durán.

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