Simulating a Global Dynamic Supply Chain as a Market of Agents with Adaptive Bidding Strategies
Authored by Gerben Bas, der Lei Telli Van
Date Published: 2015
DOI: 10.1002/cite.201500008
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Abstract
The use of modular plants in the chemical industry is expected to make
the structure of supply chains more dynamic. The models currently used
to get insight in supply chains assume a predefined supply chain
structure, as orders are exogenously defined. Consequently, those models
cannot grasp the dynamic nature of supply chains with modular plants. In
this paper a market conceptualization based on agent-based computational
economics is presented that includes transport costs in the negotiations
and enables the modeling of supply chains as structures that emerge from
market dynamics. It is shown that this conceptualization can capture the
market dynamics that are needed to simulate a dynamic supply chain.
Tags
Performance
Negotiation
Network