Agent-based modelling of complex production/distribution systems to improve resilience

Abstract

Managing supply chains in a dynamic business environment is a challenging task, particularly in the case of multi-product, multi-national supply networks, where different products with very different demand patterns share common resources, specifically production and distribution facilities. This calls for higher levels of resilience and flexibility in supply chains and requires an understanding of the dynamic nature of supply chain networks. It is argued that traditional mathematical modelling approaches are ineffective in dealing with dynamic complex supply chains. Few tools are currently available to model the integrated production/distribution system under conditions of uncertainty. This paper presents an agent-based computational framework for studying a complex multi-product, multi-country supply chain subject to demand variability, production and distribution capacity constraints with the aim of improving operational resilience. A case study example is provided.