Hybrid Simulation Based Optimization Framework for Centralized and Decentralized Supply Chains

Sahay, Nihar; Ierapetritou, Marianthi G.

doi:10.1021/ie403395p

Cited by 14 publications

(4 citation statements)

References 24 publications

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“…In another relevant study, Mele et al [134] proposed the same idea by modelling the SC system in discrete-event simulation, where each entity is an agent. The model developed by Sahay et al [135] also applied optimization inside a nested structure to optimize the variables of each participating agent in an SC system. The most recent framework of this type is applied by Zhang et al [136] in the design of SCN for biofuels.…”

Section: Optimization-based Simulationmentioning

confidence: 99%

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

Pourhejazy

Kwon

2016

Sustainability

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Abstract:The possibilities of applying Operations Research (O.R.) techniques in the design of real-world systems are vast. The optimization and design of the supply chain network (SCN) is one of the relevant topics that has directed the attention of many scholars. Sound decisions in this regard, including the proper selection of the facility's location, transportation modes and routes and inventory management policies, can noticeably improve the systems performance. Over 380 articles published between 2005 and 2016 in the ISI/Web of Science database have applied advanced O.R. techniques in SCN optimization studies. This paper offers a systematic review of these published contributions by focusing on two categories of O.R. approaches most recently applied for the design of SC systems: integrated mathematical modeling and simulation-optimization (S-O) frameworks. A taxonomy analysis of the mentioned approaches is presented based on the supply chain elements. A bibliometric analysis is also conducted to provide technical insights into the possible gaps in the field. Moreover, the relevant studies on SC sustainability are highlighted. The research results are supportive of the S-O frameworks as either an alternative approach or an effective solution method for the integrated problems. The research outcomes can provide researchers in the field with useful details of the integrated problems and S-O frameworks as the most recent O.R. methodologies in the field of SC optimization.

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Section: Optimization-based Simulationmentioning

confidence: 99%

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

Pourhejazy

Kwon

2016

Sustainability

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“…The approach, therefore, proves to be an effective way to capture these decisionmaking strategies and provide the optimal supply chain operation. 35,36 In this work, the hybrid simulation-based optimization approach is used to solve the two-stage problem at the beginning of each period in the planning horizon. A description of the hybrid simulation-based optimization approach and its components, the simulation model, and the optimization model are presented in the following subsections.…”

Section: Hybrid Simulation-based Optimizationmentioning

confidence: 99%

Flexibility assessment and risk management in supply chains

Sahay

Ierapetritou

2015

AIChE Journal

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in Wiley Online Library (wileyonlinelibrary.com) Increased uncertainty in recent years has led the supply chains to incorporate measures to be more flexible in order to perform well in the face of the uncertain events. It has been shown that these measures improve the performance of supply chains by mitigating the risks associated with uncertainties. However, it is also important to assess the uncertainty under which a supply chain network can perform well and manage risk. Flexibility is defined in terms of the bounds of uncertain parameters within which supply chain operation is feasible. A hybrid simulation-based optimization framework that uses two-stage stochastic programming in a rolling horizon framework is proposed. The framework enables taking optimum planning decisions considering demand uncertainty while managing risk. The framework is used to study the trade-offs between flexibility, economic performance, and risk associated with supply chain operation. V C 2015 American Institute of Chemical Engineers AIChE J, 61: 4166-4178, 2015 Keywords: supply chain management, flexibility, risk, hybrid simulation-based optimization IntroductionMany of the supply chains today are very efficiently designed and operate to maintain consistent low cost, and high customer satisfaction. Over the years, there have been tremendous advances in the field of information technology and with it, supply chains have become much more globalized and complex. Increased globalization leads to increased uncertainty, which has altered the way supply chain management has been considered in the recent past. The need for flexible design and operation has gained attention as an approach to offset the uncertainties in supply chain environment.In an uncertain environment, the idea that supply chains can be optimized to account for all possible scenarios is not realistic. Companies need to incorporate flexibility in their supply chains in order to adapt to the changing circumstances. Uncertain conditions increase the vulnerability of supply chains to failures. Moreover, companies have been transformed from monolithic supply chains to smaller, distributed, more flexible networks. The more complex, global, and interdependent the supply chain, the more vulnerable it becomes to uncertainties and has a higher exposure to risk. Complex networks make it more difficult to identify all the vulnerabilities in the network and manage the risk due to increased number of suppliers. Outsourcing is used as a cost-effective measure but it can also result in the inclusion of more volatile suppliers. "Just in time" approach followed by lean systems makes the supply chain more efficient but it can expose also weaknesses in the supply network due to decreased inventory and capacity. It is important to assess the impact of uncertainties on the performance of the supply chain network and how the network operates to cope with uncertainties.Mitigation of risks in the area of supply chains has gained so much attention that it has led to the development of a separat...

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“…Chen et al [15] developed a simulation-optimization model for managing the entire trial supply chain, including the planning and scheduling of Active Pharmaceutical Ingredients (API) manufacturing. Sahay, Ierapetritou [16] have applied an agent-based model hybridized with a linear programing model, to study different supply chain decision-making policies. Eberle et al [17] have applied a Monte-Carlo simulation to estimate the production lead time of pharmaceutical processes.…”

Section: Production Simulation-optimizationmentioning

confidence: 99%

Recent Trends and Challenges in Planning and Scheduling of Chemical-Pharmaceutical Plants

Moniz

Barbosa‐Póvoa

Sousa

2015

Studies in Big Data

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This paper discusses the current trends in optimization methods for solving planning and scheduling problems in the chemical-pharmaceutical industry. The challenges of this industry and the recent advances in modeling these problems show that optimization methods need to provide highly integrated solutions encompassing decision-making at both R&D and Operations levels. The heterogeneous demand, characteristic of the complex drug development cycle, asks for mixed planning strategies capable of increasing the resources utilization and the plant output, and of dealing with uncertainty.

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Hybrid Simulation Based Optimization Framework for Centralized and Decentralized Supply Chains

Cited by 14 publications

References 24 publications

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

Flexibility assessment and risk management in supply chains

Recent Trends and Challenges in Planning and Scheduling of Chemical-Pharmaceutical Plants

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