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Tuesday, March 01, 2016

Agent-Based Supply Chain

Have mentioned this paper a number of times here,  there has just been some increased interest in the concept.  Consider how such a system could be integrated with an advisory AI system, to evaluate given solutions?   Note the paper is a more than a decade old, but the concepts remain useful,

The Virtual Workd of Agent-Based Modeling: Procter & Gamble's Dynamic Supply Chain by Fred Seibel and Larry Kellam
A few years ago, two numbers were driving Procter & Gamble, the best-in-breed consumer products company, crazy. The first number was reflected in its inventory: P&G had $3.8 billion of inventory floating in its distribution system—which is an enormous amount of working capital. The second number was out-of-stocks: Of the top 2,000 items in a grocery or mass-discount store, 11 percent are out of stock at any time. P&G products make up a good number of those items, and while some people who go to a store and don’t find what they’re looking for will put off their purchase, many others will buy another brand or not buy anything at all. ... " 

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