All problem statements

Problem 8

Manufacturing ERP — Production Scheduling & Raw Material Sourcing Agent

Catch the shortage before the line stops, then substitute, source, or resequence so the day still runs.

Background

The Production Planning module of a manufacturing ERP schedules production runs based on sales orders and raw-material availability. When a raw material falls short, a planner has to manually decide whether to delay the run, substitute a material, or place an urgent purchase order — usually under time pressure, right before a line would otherwise stop.

The Problem

Manual replanning is slow and reactive, and it rarely explores substitute materials or multiple supplier options before committing to an urgent, often expensive, purchase. A shortage on one material can also unnecessarily stall other runs that could have been resequenced ahead of it.

The challenge is to build an agent that catches shortages early and resolves them with the least disruption to the overall schedule.

Target Users and Organizations

This problem is relevant to organizations that plan and run physical production, including:

  • Manufacturing SMEs
  • Production planners and schedulers
  • ERP/Production Planning module vendors
  • Procurement teams supporting manufacturing

Challenge

Build an agentic AI module that checks a production schedule against raw-material stock in a mock ERP, detects shortages that will block a scheduled run, resolves them by proposing an approved substitute material or by sourcing and negotiating an urgent purchase with a supplier agent, and re-sequences the schedule to minimize delay.

Participants are not required to model every planning rule. Teams may choose the sourcing and rescheduling scope they want to address and are encouraged to innovate beyond the examples provided.

Expected Capabilities

Shortage Detection

Cross-check the production schedule's material requirements against current stock and open purchase orders.

Substitution Reasoning

Identify approved substitute materials that satisfy the same production specification.

Urgent Sourcing & Negotiation

Source and negotiate price and lead time with one or more mock supplier agents when no substitute is viable.

Schedule Re-Sequencing

Reorder unaffected production runs ahead of a blocked one to minimize total idle time.

Difficulty Levels

Level 1 (Basic Agency)

The agent reads a CSV of the day's production schedule and raw-material stock, and flags which scheduled runs will be blocked by a shortage and by how much, with reasoning.

Level 2 (Tool Integration)

For each shortage, the agent checks a substitute-materials table and recommends a substitute when compatible; otherwise it auto-drafts an urgent purchase request to a mock "Supplier API." Level 3 (Multi-Agent Negotiation — Stretch Goal) A "Planner Agent" negotiates lead time and price with 2–3 "Supplier Agents" for urgent shortages that have no substitute, then re-sequences the full day's schedule to minimize total production delay and writes the updated schedule back into the mock ERP.

Expected Outputs

A working demo showing the shortage detection, resolution decisions, and updated schedule.

A generated result may include:

  • Shortage report per production run with reasoning
  • Substitution or sourcing decision for each shortage
  • Negotiation transcripts (where applicable)
  • Updated, re-sequenced production schedule
  • Summary of delay minimized versus the original blocked schedule

Scope

Participants are free to decide:

  • How the mock schedule, stock, and supplier data are structured
  • How substitute-material compatibility is determined
  • How the negotiation strategy works
  • How the updated schedule is represented
  • Which AI models or tools are used
  • The system architecture
  • Whether multiple AI agents are used

Teams may use synthetic or publicly available manufacturing datasets where appropriate.

Constraints

1. Meaningful AI Usage

The solution should demonstrate why intelligent sourcing and rescheduling are required. Solutions should go beyond a single fixed "delay the run" default.

2. Detection and Resolution Should Be Connected

The specific shortage and its severity should meaningfully determine whether a substitute, an urgent order, or a resequencing is chosen.

3. Delay Minimization

The solution should attempt to minimize total production delay across the schedule, not just resolve the first shortage found.

4. Appropriate Handling of Different Cases

Teams should show the agent behaving sensibly when a substitute exists versus when an urgent order is the only option.

5. Actionable Output

The updated schedule should be structured so it could be handed directly to the shop floor.

6. Efficiency

Participants should be mindful of processing time and negotiation rounds given the short hackathon window — a well-scoped Level 1 or 2 is better than an unfinished Level 3.

7. Innovation Freedom

Participants are not restricted to a specific model, framework, scheduling algorithm, or technology.

Success Criteria and Evaluation

Criteria

What It Measures

Detection Accuracy

Correctness of identified shortages and their severity

Resolution Quality

Soundness of substitution or sourcing decisions

Delay Minimization

How effectively the re-sequenced schedule reduces total delay

Adaptability

Ability to handle multiple simultaneous shortages

AI Necessity

Whether AI provides meaningful value beyond a fixed delay rule

Technical Quality

Architecture, implementation, and robustness

Efficiency

Sensible use of models and negotiation rounds within the time limit

Innovation

Novelty of the sourcing or rescheduling approach

Clarity of Demo

Ability to clearly show detection, resolution, and final schedule

Product Potential

Ability to evolve into a practical Production Planning add-on

Freedom to Innovate

Participants are free to choose their own technical approach.

Solutions may use any relevant combination of:

  • LLMs
  • Scheduling/optimization algorithms
  • Multi-agent negotiation
  • Rule-based substitution matching
  • Mocked supplier communication APIs
  • Agentic AI

The listed technologies are examples only and should not limit innovation.

Core Objective

Given a production schedule and raw-material constraints, intelligently detect shortages, resolve them with the least disruption, and keep the overall schedule as efficient as possible.