Decision Support Tool for Supply Chain Configuration Considering New Product Re-Design: An Agent-Based Approach

Abstract

In the decline phase of product lifecycle, industrials need to re-design their products to introduce new functions and/or customers’ new preferences. These changes may not only affect the product’s bill of material, but also its supply chain network. Consequently, new supply chain costs are generated. This paper addresses the problem of supply chain configuration considering new product re-design using a multi-agent system (MAS). The objective of the system is to ensure good collaboration between two different points of view, supply chain partners and product designers, to make better decisions. To model the proposed system, we select the multi-agent system engineering (MaSe) methodology. The MAS framework contains three types of agents, namely, “product design agent” and “supply chain agents” which are fitted with optimization tools. These tools allow costs’ optimization and selection of supply chain means (suppliers, technologies, etc.). Finally, the system contains a “communication agent” acting like a mediator; it facilitates data exchange between designers. To support distributed decision-making, two models of mixed integer linear programming are adopted and implemented within the framework for supply chain optimization. The overall MAS approach was tested in simulation with a case study. The objective of the simulation is to choose among three product alternatives the cheapest one based on its supplying and production costs, under capacity constraints. The MAS was able to find the best product alternative among three alternatives proposed by product design team and select optimal supply chain means. The optimal supply chain contains two suppliers: one machine and one subcontractor to satisfy customer’s demand.