A combined optimization and agent-based approach to supply chain modelling and performance assessment

Abstract

The main objective of this paper is to give an example of how expert systems techniques for distributed decision-making can be combined with contemporary numerical optimization techniques for the purposes of supply chain optimization and to describe the resulting software implementation. In this paper, multi-agent modelling techniques are applied to simulate and control a simple demand-driven supply chain network system, with the manufacturing component being optimized through mathematical programming. The system measures supply chain performance and the effect of different parameters in the replenishment control system, and can be used to simulate the behaviour of a system that uses optimization for part of its decision-making. The objective of this supply chain network system is to reduce operating cost, while maintaining a high level of customer order fulfilment.