Optimizing beer distribution game order policy using numerical simulations

One of the major challenges in supply chain management is the level of information availability. It is very hard yet important to coordinate each stage in the supply chain when the information is not centralized and the demand is uncertain. In this thesis, I analyzed the bullwhip effect in supply chain management using the MIT Beer Distribution Game. I also proposed heuristics and models to optimize the MIT Beer Distribution Game order policy when the customer's demand is both known and unknown. The proposed model provides each player with an order policy based on how many weeks of inventory the player needs to keep ahead to minimize the global cost of the supply chain. The optimized order policy is robust, practical, and generated by numerical simulations. The model is applied in a number of experiments involving deterministic and random demand and lead time. The simulation results of my work are compared with two other artificial agent algorithms, and the improvements brought by my results are presented and analyzed.

Department dc:contributor.department

Massachusetts Institute of Technology. Computation for Design and Optimization Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Xiao, Qinwen

Advisor dc:contributor.advisor

• James B. Orlin and David Simchi-Levi.

• Computation for Design and Optimization Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/55081

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/55081