Article ID Journal Published Year Pages File Type
172707 Computers & Chemical Engineering 2012 11 Pages PDF
Abstract

In this work, we propose a hybrid simulation optimization approach that addresses the problem of supply chain management. We formulated the problem as a mathematical model which minimizes the summation of production cost, transportation cost, inventory holding and shortage costs, subject to capacity and inventory balance constraints and propose a hybrid approach combining mathematical programming and simulation model to solve this problem. The main objective of this approach is to overcome the computational complexity associated with solving the underlying large-scale mixed integer linear problem and to provide a better representation of supply chain reality. The simulation-based optimization strategy uses an agent-based system to model the supply chain network. Each entity in the supply chain is represented as an agent whose activity is described by a collection of behavioral rules. The overall system is coupled with an optimization algorithm that is designed to address planning and scheduling level decisions.

Related Topics
Physical Sciences and Engineering Chemical Engineering Chemical Engineering (General)
Authors
, ,