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Business Information Systems Decision Support Group Dirk Christian Mattfeld Future of DELS Research and Practice Dirk C. Mattfeld TU Braunschweig.

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Presentation on theme: "Business Information Systems Decision Support Group Dirk Christian Mattfeld Future of DELS Research and Practice Dirk C. Mattfeld TU Braunschweig."— Presentation transcript:

1 Business Information Systems Decision Support Group Dirk Christian Mattfeld Future of DELS Research and Practice Dirk C. Mattfeld TU Braunschweig

2 Business Information Systems Decision Support Group Dirk Christian Mattfeld CIM Integration 1 Planning Control Engineering Business Admin Capacity based continuous static deterministic Event based discrete dynamic stochastic

3 Business Information Systems Decision Support Group Dirk Christian Mattfeld Need for Integration 2 Bottleneck resources, e.g. wafer scheduling Stochastic environment, e.g. ad-hoc supply chains Pricy products, e.g. aerospace spare parts Missing process definition, e.g. micro-production Explicit customer commitments, e.g. courier services Complex constraints, linked activities dependent events Process variation, human interaction stochastic env.

4 Business Information Systems Decision Support Group Dirk Christian Mattfeld Requirements of the Computational Model 3 An event based decision determines future states State transitions are important features in DELS Important features should go into the model Dynamic optimization models are required Events also introduce probabilities of occurence Stochastic optimization is desired as well Dynamic stochastic optimization is desired

5 Business Information Systems Decision Support Group Dirk Christian Mattfeld Courier, Express and Parcel Services Less-than-truckload transports Stochastic customer demands Online vehicle routing Diversification of products For instance UPS: Standard, Express, Express Plus Constraint: Keep customer service commitment Objective: Maximize number of customers visited 4

6 Business Information Systems Decision Support Group Dirk Christian Mattfeld Detailed Toy Problem Description Dynamic vehicle routing One vehicle in one period Given depots Known customer requests Stochastic customer requests Decisions Sequence of visits Acceptance of customer request Conditional wait for incoming requests 5

7 Business Information Systems Decision Support Group Dirk Christian Mattfeld Approximate Dynamic Programming Size of problem depends on Number of decisions Number of stoch. events Number of periods Usually DP does not work for DELS Approximate DP Restricts the state space Plans on a rolling horizon Uses fast heuristics for decisions Simulates subsequent trajectories Learns the expected reward from simulation 6

8 Business Information Systems Decision Support Group Dirk Christian Mattfeld Learning the Expected Value of Future States 7

9 Business Information Systems Decision Support Group Dirk Christian Mattfeld Comparison with COG Based Heuristics 8

10 Business Information Systems Decision Support Group Dirk Christian Mattfeld Problems vs. Methods Dependent Stochastic 9 Problem Support LP MILP Simulation Heuristics Meta-heuristics Rounding Strategic Planning Operations Control Independent Deterministic Negotiation Trivial Challenge ADP ? ? ?

11 Business Information Systems Decision Support Group Dirk Christian Mattfeld Implications Only specific areas of application require DELS support There is a need for integrated planning and control Forecasts are to be part of the optimization procedure Optimization, simulation and learning are ingredients ADP provides a footing for optimizing DELS Suitable optimization support still is a grand challenge 10


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