A Game-Based Approach for Simulation and Design of Supply Chains

Abstract

This chapter reviews the potential benefits and challenges of knowledge-based computer game simulation as means of understanding the dynamics of global procurement and manufacturing supply chains. In particular the chapter focuses on the use of software agents to assist decision making across the supply chain, for example in raw material procurement. The chapter describes a framework for supply chain scenarios in multi-agent based simulation games. The agents' behaviour is governed by business rules, based on the concept of normative knowledge representation and its reasoning mechanism (known as rule-based reasoning, RBR) and that also come closer to the task that confronts the supply chain operational manager – the analysis of current case in hand in terms of previously decided business problem solutions, known as case-based reasoning (CBR). The aim is to introduce more realistic behavior of the supply chain actors and improve understanding in operational management of supply chains.