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Integrating System Dynamics and Multi-Objective Optimization for Manufacturing Supply Chain Analysis
University of Skövde, School of Technology and Society. University of Skövde, The Virtual Systems Research Centre.ORCID iD: 0000-0002-0880-2572
University of Skövde, School of Technology and Society. University of Skövde, The Virtual Systems Research Centre.ORCID iD: 0000-0003-0111-1776
University of Skövde, School of Technology and Society. University of Skövde, The Virtual Systems Research Centre.
2012 (English)In: Proceedings of the 5th Swedish Production symposium (SPS'12), 2012, p. 433-441Conference paper, Published paper (Refereed)
Abstract [en]

The aim of this paper is to address the dilemma of Supply Chain Management (SCM) within a truly Pareto-based multi-objective context. This is done by introducing an integration of System Dynamics and Multi-Objective Optimization. Specifically, the paper contrasts local optimization with global optimization for SCM in which optimal trade-off solutions in the entity level, i.e. optimizing the supply chain from the perspectives of individual (local) entities. e.g., supplier, factory, distributor and retailer, are collected and compared to those obtained from an overall supply chain level (global) optimization. An extended version of the well-known pedagogical SCM problem, the Beer Game, originally developed at MIT since the 1960s, has been used as the illustrative example. As will be discussed in the paper, the integrated multi-objective optimization and system dynamics model has been shown to be very useful for revealing that how the parameters in the Beer Game affect the optimality of the three common SCM objectives, namely, the minimization of inventory, backlog, and the bullwhip effect.

Place, publisher, year, edition, pages
2012. p. 433-441
Keywords [en]
Multi-Objective Optimization, System Dynamics, Beer Game, Bullwhip Effect, Supply Chain Management
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Technology
Identifiers
URN: urn:nbn:se:his:diva-7163ISBN: 978-91-7519-752-4 OAI: oai:DiVA.org:his-7163DiVA, id: diva2:605253
Conference
5th Swedish Production symposium (SPS'12), 6th-8th of November 2012, Linköping, Sweden
Available from: 2013-02-07 Created: 2013-02-07 Last updated: 2017-11-27Bibliographically approved

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Aslam, TehseenNg, Amos H. C.Karlsson, Ingemar

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