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

The main objective of this paper is to give an example of how expert system s techniques for distributed decision-making can be combined with contempor ary numerical optimization techniques for the purposes of supply chain opti mization and to describe the resulting software implementation. In this pap er, multi-agent modelling techniques are applied to simulate and control a simple demand-driven supply chain network system, with the manufacturing co mponent being optimized through mathematical programming. The system measur es supply chain performance and the effect of different parameters in the r eplenishment control system, and can be used to simulate the behaviour of a system that uses optimization for part of its decision-making. The objecti ve of this supply chain network system is to reduce operating cost, while m aintaining a high level of customer order fulfilment.