SimRisk: An Integrated Open-Source Tool for Agent-Based ...

SimRisk: An Integrated Open-Source Tool for Agent-Based ... SimRisk: An Integrated Open-Source Tool for Agent-Based ...

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s a s b u a1 /d a1 w11 a w11 b u w12 a w11 b b1 /d b1 u a1 /d a1 u b1 /d b1 w21 a w21 b u b2 /d b2 u w22 a w22 b u b2 /d b2 w23 a w23 b u b2 /d b2 w24 a w24 b a2 /d a2 u a2 /d a2 u a2 /d a2 u a2 /d a2 u b2 /d b2 r 1 r 2 r 3 r 4 r 5 r 6 r 7 r 8 r 9 r 10 r 11 r 12 r 13 r 14 r 15 r 16 (a) Two supply chains operated separately by companies A and B s a s b u a1 /d a1 w11 a w11 b u w12 a w11 b b1 /d b1 u a1 /d a1 u b1 /d b1 w21 a w21 b u b2 /d b2 u w22 a w22 b u b2 /d b2 w23 a w23 b u b2 /d b2 w24 a w24 b a2 /d a2 u a2 /d a2 u a2 /d a2 u a2 /d a2 u b2 /d b2 r 1 r 2 r 3 r 4 r 5 r 6 r 7 r 8 r 9 r 10 r 11 r 12 r 13 r 14 r 15 r 16 (b) A consolidated supply chain with product pooling. Figure 1: Supply chain configurations before and after a merger. d qi and u qi are the failure and recovery rates of a level-i warehouse operated by q ∈ {a, b} [Tan and Xu, 2009a]. L-2 Cross-Warehouse L-1 Cross-Warehouse Product pooling Improvement 10 4.0 10 3.0 10 2.0 10 1.0 10 0.0 10 -1.0 10 3.5 10 3.0 10 2.5 10 2.0 10 1.5 10 1.0 10 0.5 10 0.0 10 -0.5 0 0.1 0.2 0.3 0.4 0.5 0.6 Stability of network A 0.7 0.8 0.9 1 0.9 0.8 0.7 0.6 0.5 0.4 Stability of network B 0.3 0.2 0.1 1 0 Figure 2: Improvement of probability of on-time delivery with different supply-chain consolidation strategies. 6

2009b], and model-checking-based formal analysis technique[Tan and Xu, 2009a]. We also developed a prototype of a modeling and simulation tool for supply-chain analysis [Tan and Xu, 2009a]. These accomplishments have prepared us to take on this project. This grant will provide crucial resources we need to advance and complete the research we started in our preliminary study. If funded, this project will leverage the benefits of recent advances in computer science, especially in software engineering and formal methods and apply them to stochastic supply-chain analysis. The project will also advance theories and methods crucial for modeling and analysis of largescale stochastic supply chains. Finally the project will produce an open-source tool Simrisk as a platform for delivering new analysis and optimization technologies to practitioners and researchers. Simrisk will also serve as an open platform and technology testbed that allows other researchers to experiment new technologies. If successful, this project will empower researchers and practitioners with technologies and an open-source tool that are scalable for analyzing large-scale global supply chains under uncertainty. With this new capability, next we will apply Simrisk to supply-chain risk management, contracting, and performance evaluation. As the follow-up of this project, we will team with industrial leaders such as Boeing, which we already have collaboration with on supply chain consulting, and research institutions such as Pacific Northwest National Lab (PNNL), which we are collaborating with on high-performance simulation technology. We will apply the methods and the tool produced in this project to the analysis of intercontinental supply chains using Peta-scale computing platforms. 5 Research plan 5.1 Specific aim 1: develop an agent-based stochastic supply-chain modeling framework The framework will model elements of a supply chain as automatous stochastic agents. It will also formally define operational semantics of these agents and their interactions. This is the start point of this project since other activities rely on this model language as the front end. Specifically we will address the following issues, 1. Agent modeling. This activity will consider how to model supply chain elements as autonomous agents. Since our emphasis is on stochastic behaviors of these elements and each element has its own decision logic, we will model agents as Markov decision processes. In [Tan and Xu, 2008] we proposed an extension of Markov decision process (EMDP) and modeled each element as a restricted two-state EMDP. For example, every element in a 4-echelon supply chain in Figure 1.(a) has only two states: working and failed. In this project, we plan to lift such restriction. We will encode more complex decision logic for each element. Moreover, we will make the following advances in agent modeling for supply chains: (a) Extend E-EMDP (Element Extended Markov Decision Process) in [Tan and Xu, 2008] to include logic that models the decision process of an element. For instance, for warehouse w11 a in Figure 1.(a), the proposed extension will also support the encoding of its ordering and distribution logic. The ordering logic of w11 a will decide when and where to place orders based on factors including w11 a ’s inventory, the pricing structures of its suppliers s a and s b , and requests from its customers w21 a and wa 22 . 7

2009b], and model-checking-based <strong>for</strong>mal analysis technique[Tan and Xu, 2009a]. We also developed<br />

a prototype of a modeling and simulation tool <strong>for</strong> supply-chain analysis [Tan and Xu, 2009a].<br />

These accomplishments have prepared us to take on this project. This grant will provide crucial<br />

resources we need to advance and complete the research we started in our preliminary study. If<br />

funded, this project will leverage the benefits of recent advances in computer science, especially<br />

in software engineering and <strong>for</strong>mal methods and apply them to stochastic supply-chain analysis.<br />

The project will also advance theories and methods crucial <strong>for</strong> modeling and analysis of largescale<br />

stochastic supply chains. Finally the project will produce an open-source tool Simrisk as a<br />

plat<strong>for</strong>m <strong>for</strong> delivering new analysis and optimization technologies to practitioners and researchers.<br />

Simrisk will also serve as an open plat<strong>for</strong>m and technology testbed that allows other researchers to<br />

experiment new technologies. If successful, this project will empower researchers and practitioners<br />

with technologies and an open-source tool that are scalable <strong>for</strong> analyzing large-scale global supply<br />

chains under uncertainty. With this new capability, next we will apply Simrisk to supply-chain<br />

risk management, contracting, and per<strong>for</strong>mance evaluation. As the follow-up of this project, we<br />

will team with industrial leaders such as Boeing, which we already have collaboration with on<br />

supply chain consulting, and research institutions such as Pacific Northwest National Lab (PNNL),<br />

which we are collaborating with on high-per<strong>for</strong>mance simulation technology. We will apply the<br />

methods and the tool produced in this project to the analysis of intercontinental supply chains<br />

using Peta-scale computing plat<strong>for</strong>ms.<br />

5 Research plan<br />

5.1 Specific aim 1: develop an agent-based stochastic supply-chain modeling<br />

framework<br />

The framework will model elements of a supply chain as automatous stochastic agents. It will also<br />

<strong>for</strong>mally define operational semantics of these agents and their interactions. This is the start point<br />

of this project since other activities rely on this model language as the front end. Specifically we<br />

will address the following issues,<br />

1. <strong>Agent</strong> modeling. This activity will consider how to model supply chain elements as autonomous<br />

agents. Since our emphasis is on stochastic behaviors of these elements and each<br />

element has its own decision logic, we will model agents as Markov decision processes. In [Tan<br />

and Xu, 2008] we proposed an extension of Markov decision process (EMDP) and modeled<br />

each element as a restricted two-state EMDP. For example, every element in a 4-echelon supply<br />

chain in Figure 1.(a) has only two states: working and failed. In this project, we plan to<br />

lift such restriction. We will encode more complex decision logic <strong>for</strong> each element. Moreover,<br />

we will make the following advances in agent modeling <strong>for</strong> supply chains:<br />

(a) Extend E-EMDP (Element Extended Markov Decision Process) in [Tan and Xu, 2008] to<br />

include logic that models the decision process of an element. For instance, <strong>for</strong> warehouse<br />

w11 a in Figure 1.(a), the proposed extension will also support the encoding of its ordering<br />

and distribution logic. The ordering logic of w11 a will decide when and where to place<br />

orders based on factors including w11 a ’s inventory, the pricing structures of its suppliers<br />

s a and s b , and requests from its customers w21 a and wa 22 .<br />

7

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