BBO in solving complex optimization problems– bullwhip effect reduction in logistics networks
Abstract
This chapter addresses Biogeography-Based Optimization (BBO)
implementation for counteracting the bullwhip effect in logistic systems influenced
by uncertain demand. The considered class of systems comprises
two types of actors – controlled nodes and external sources – connected
by unidirectional links. In this paper, the application of BBO is proposed to
support the optimization problem of proper channel allocation in transportation
links. BBO allows one to perform simulation-based optimization and
provide desirable operating conditions to answer a priori unknown, timevarying
demand. The effectiveness of the goods distribution process governed
under a base-stock policy includes the objective function of mitigating
the bullwhip effect and minimizing transportation costs. The introduced optimization
problem is solved using BBO to find an optimal channel allocation
matrix for a given topology. The results are verified in extensive simulations
of a real-world logistic network.