Strategy evaluation using system dynamics and multi-objective optimization for an internal supply chain

System dynamics, which is an approach built on information feedbacks and delays in the model in order to understand the dynamical behavior of a system, has successfully been implemented for supply chain management problems for many years. However, research within in multi-objective optimization of supply chain problems modelled through system dynamics has been scares. Supply chain decision making is much more complex than treating it as a single objective optimization problem due to the fact that supply chains are subjected to the multiple performance measures when optimizing its process. This paper presents an industrial application study utilizing the simulation based optimization framework by combining system dynamics simulation and multi-objective optimization. The industrial study depicts a conceptual system dynamics model for internal logistics system with the aim to evaluate the effects of different material flow control strategies by minimizing total system work-on-process as wells as total delivery delay.

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