An Agent-Based Model of Smart Supply Chain Networks

Abstract

A global industrial enterprise is a complex network of different distributed production plants producing, inventory, and distributing products. Agent-based model provides the approach to prove complex network problems of independent actors. A global economy and increase in both demand fluctuation and pressures for cost decreasing while satisfying customer services have put a premium on smart supply chain management. It is important to make risk-benefit analysis of supply chain design alternatives before making a final decision. Simulation gives us an effective approach to comparative analysis and evaluation of the alternatives. In this paper, we describe an agent-based simulation tool for designing smart supply chain networks as well logistic networks. Using an agent-based approach, supply chain models are composed from supply chain agents. The agent-based simulation tool can be very useful for predicting the effects of local and system-level activities on multi-plant performance and improving the tactical and strategic decision-making at the enterprise level. Specifically, this model can reveal the optimal method to ship the inventory on some situations which are demand fluctuation and network disruption. The demand fluctuation effects the inventory management. The network disruption restricts the logistics. This model evaluates supply chain management from the viewpoints of the amount of inventory, the way of shipping and cost.