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.