Decision support for build-to-order supply chain management through multiobjective optimization

This is the post-print version of the final paper published in International Journal of Production Economics. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.This paper aims to identify the gaps in decision-making support based on multiobjective optimization (MOO) for build-to-order supply chain management (BTO-SCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting MOO techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted. Future research directions to better exploit the decision support capabilities of MOO are proposed. These include: reformulation of the extant optimization models with a MOO perspective, development of decision supports for interfaces not involving manufacturers, development of scenarios around service-based objectives, development of efficient solution tools, considering the interests of each supply chain party as a separate objective to account for fair treatment of their requirements, and applying the existing methodologies on real-life data sets.Brunel Research Initiative and Enterprise Fund (BRIEF

Decision support for build-to-order supply chain management through multiobjective optimization

This paper aims to identify the gaps in decision-making support based on multiobjective optimization for build-to-order supply chain management (BTOSCM). To this end, it reviews the literature available on modelling build-to-order supply chains (BTO-SC) with the focus on adopting multiobjective optimization (MOO) techniques as a decision support tool. The literature has been classified based on the nature of the decisions in different part of the supply chain, and the key decision areas across a typical BTO-SC are discussed in detail. Available software packages suitable for supporting decision making in BTO supply chains are also identified and their related solutions are outlined. The gap between the modelling and optimization techniques developed in the literature and the decision support needed in practice are highlighted and future research directions to better exploit the decision support capabilities of MOO are proposed

Network-based business process management: embedding business logic in communications networks

Advanced Business Process Management (BPM) tools enable the decomposition of previously integrated and often ill-defined processes into re-usable process modules. These process modules can subsequently be distributed on the Internet over a variety of many different actors, each with their own specialization and economies-of-scale. The economic benefits of process specialization can be huge. However, how should such actors in a business network find, select, and control, the best partner for what part of the business process, in such a way that the best result is achieved? This particular management challenge requires more advanced techniques and tools in the enabling communications networks. An approach has been developed to embed business logic into the communications networks in order to optimize the allocation of business resources from a network point of view. Initial experimental results have been encouraging while at the same time demonstrating the need for more robust techniques in a future of massively distributed business processes.active networks;business process management;business protocols;embedded business logic;genetic algorithms;internet distributed process management;payment systems;programmable networks;resource optimization

From supply chains to demand networks. Agents in retailing: the electrical bazaar

A paradigm shift is taking place in logistics. The focus is changing from operational effectiveness to adaptation. Supply Chains will develop into networks that will adapt to consumer demand in almost real time. Time to market, capacity of adaptation and enrichment of customer experience seem to be the key elements of this new paradigm. In this environment emerging technologies like RFID (Radio Frequency ID), Intelligent Products and the Internet, are triggering a reconsideration of methods, procedures and goals. We present a Multiagent System framework specialized in retail that addresses these changes with the use of rational agents and takes advantages of the new market opportunities. Like in an old bazaar, agents able to learn, cooperate, take advantage of gossip and distinguish between collaborators and competitors, have the ability to adapt, learn and react to a changing environment better than any other structure. Keywords: Supply Chains, Distributed Artificial Intelligence, Multiagent System.Postprint (published version

Development of transportation and supply chain problems with the combination of agent-based simulation and network optimization

Demand drives a different range of supply chain and logistics location decisions, and agent-based modeling (ABM) introduces innovative solutions to address supply chain and logistics problems. This dissertation focuses on an agent-based and network optimization approach to resolve those problems and features three research projects that cover prevalent supply chain management and logistics problems. The first case study evaluates demographic densities in Norway, Finland, and Sweden, and covers how distribution center (DC) locations can be established using a minimizing trip distance approach. Furthermore, traveling time maps are developed for each scenario. In addition, the Nordic area consisting of those three countries is analyzed and five DC location optimization results are presented. The second case study introduces transportation cost modelling in the process of collecting tree logs from several districts and transporting them to the nearest collection point. This research project presents agent-based modelling (ABM) that incorporates comprehensively the key elements of the pick-up and delivery supply chain model and designs the components as autonomous agents communicating with each other. The modelling merges various components such as GIS routing, potential facility locations, random tree log pickup locations, fleet sizing, trip distance, and truck and train transportation. The entire pick-up and delivery operation are modeled by ABM and modeling outcomes are provided by time series charts such as the number of trucks in use, facilities inventory and travel distance. In addition, various scenarios of simulation based on potential facility locations and truck numbers are evaluated and the optimal facility location and fleet size are identified. In the third case study, an agent-based modeling strategy is used to address the problem of vehicle scheduling and fleet optimization. The solution method is employed to data from a real-world organization, and a set of key performance indicators are created to assess the resolution's effectiveness. The ABM method, contrary to other modeling approaches, is a fully customized method that can incorporate extensively various processes and elements. ABM applying the autonomous agent concept can integrate various components that exist in the complex supply chain and create a similar system to assess the supply chain efficiency.Tuotteiden kysyntä ohjaa erilaisia toimitusketju- ja logistiikkasijaintipäätöksiä, ja agenttipohjainen mallinnusmenetelmä (ABM) tuo innovatiivisia ratkaisuja toimitusketjun ja logistiikan ongelmien ratkaisemiseen. Tämä väitöskirja keskittyy agenttipohjaiseen mallinnusmenetelmään ja verkon optimointiin tällaisten ongelmien ratkaisemiseksi, ja sisältää kolme tapaustutkimusta, jotka voidaan luokitella kuuluvan yleisiin toimitusketjun hallinta- ja logistiikkaongelmiin. Ensimmäinen tapaustutkimus esittelee kuinka käyttämällä väestötiheyksiä Norjassa, Suomessa ja Ruotsissa voidaan määrittää strategioita jakelukeskusten (DC) sijaintiin käyttämällä matkan etäisyyden minimoimista. Kullekin skenaariolle kehitetään matka-aikakartat. Lisäksi analysoidaan näistä kolmesta maasta koostuvaa pohjoismaista aluetta ja esitetään viisi mahdollista sijaintia optimointituloksena. Toinen tapaustutkimus esittelee kuljetuskustannusmallintamisen prosessissa, jossa puutavaraa kerätään useilta alueilta ja kuljetetaan lähimpään keräyspisteeseen. Tämä tutkimusprojekti esittelee agenttipohjaista mallinnusta (ABM), joka yhdistää kattavasti noudon ja toimituksen toimitusketjumallin keskeiset elementit ja suunnittelee komponentit keskenään kommunikoiviksi autonomisiksi agenteiksi. Mallinnuksessa yhdistetään erilaisia komponentteja, kuten GIS-reititys, mahdolliset tilojen sijainnit, satunnaiset puunhakupaikat, kaluston mitoitus, matkan pituus sekä monimuotokuljetukset. ABM:n avulla mallinnetaan noutojen ja toimituksien koko ketju ja tuloksena saadaan aikasarjoja kuvaamaan käytössä olevat kuorma-autot, sekä varastomäärät ja ajetut matkat. Lisäksi arvioidaan erilaisia simuloinnin skenaarioita mahdollisten laitosten sijainnista ja kuorma-autojen lukumäärästä sekä tunnistetaan optimaalinen toimipisteen sijainti ja tarvittava autojen määrä. Kolmannessa tapaustutkimuksessa agenttipohjaista mallinnusstrategiaa käytetään ratkaisemaan ajoneuvojen aikataulujen ja kaluston optimoinnin ongelma. Ratkaisumenetelmää käytetään dataan, joka on peräisin todellisesta organisaatiosta, ja ratkaisun tehokkuuden arvioimiseksi luodaan lukuisia keskeisiä suorituskykyindikaattoreita. ABM-menetelmä, toisin kuin monet muut mallintamismenetelmät, on täysin räätälöitävissä oleva menetelmä, joka voi sisältää laajasti erilaisia prosesseja ja elementtejä. Autonomisia agentteja soveltava ABM voi integroida erilaisia komponentteja, jotka ovat olemassa monimutkaisessa toimitusketjussa ja luoda vastaavan järjestelmän toimitusketjun tehokkuuden arvioimiseksi yksityiskohtaisesti.fi=vertaisarvioitu|en=peerReviewed

An optimal-control based integrated model of supply chain

Problems of supply chain scheduling are challenged by high complexity, combination of continuous and discrete processes, integrated production and transportation operations as well as dynamics and resulting requirements for adaptability and stability analysis. A possibility to address the above-named issues opens modern control theory and optimal program control in particular. Based on a combination of fundamental results of modern optimal program control theory and operations research, an original approach to supply chain scheduling is developed in order to answer the challenges of complexity, dynamics, uncertainty, and adaptivity. Supply chain schedule generation is represented as an optimal program control problem in combination with mathematical programming and interpreted as a dynamic process of operations control within an adaptive framework. The calculation procedure is based on applying Pontryagin’s maximum principle and the resulting essential reduction of problem dimensionality that is under solution at each instant of time. With the developed model, important categories of supply chain analysis such as stability and adaptability can be taken into consideration. Besides, the dimensionality of operations research-based problems can be relieved with the help of distributing model elements between an operations research (static aspects) and a control (dynamic aspects) model. In addition, operations control and flow control models are integrated and applicable for both discrete and continuous processes.supply chain, model of supply chain scheduling, optimal program control theory, Pontryagin’s maximum principle, operations research model,

Digital Ecosystems: Ecosystem-Oriented Architectures

We view Digital Ecosystems to be the digital counterparts of biological ecosystems. Here, we are concerned with the creation of these Digital Ecosystems, exploiting the self-organising properties of biological ecosystems to evolve high-level software applications. Therefore, we created the Digital Ecosystem, a novel optimisation technique inspired by biological ecosystems, where the optimisation works at two levels: a first optimisation, migration of agents which are distributed in a decentralised peer-to-peer network, operating continuously in time; this process feeds a second optimisation based on evolutionary computing that operates locally on single peers and is aimed at finding solutions to satisfy locally relevant constraints. The Digital Ecosystem was then measured experimentally through simulations, with measures originating from theoretical ecology, evaluating its likeness to biological ecosystems. This included its responsiveness to requests for applications from the user base, as a measure of the ecological succession (ecosystem maturity). Overall, we have advanced the understanding of Digital Ecosystems, creating Ecosystem-Oriented Architectures where the word ecosystem is more than just a metaphor.Comment: 39 pages, 26 figures, journa