Multi-Agent coordination based on tokens: reduction of the bullwhip effect in a forest supply chain

ABSTRACT

In this paper, we focus on the supply chain as a multi-agent system and we propose a new coordination technique to reduce the fluctuations of orders placed by each company to its suppliers in such a supply chain. This problem of amplification of the demand variability is called the bullwhip effect. To reduce such a bullwhip effect, we propose a technique based on tokens to achieve a decentralized coordination. Precisely, classical orders manage the demand itself whereas tokens manage effects on company inventory due to variations of this demand. Finally, the proposed approach is validated by the Wood Supply Game, which is a supply chain model used to make players aware of the bullwhip effect. We experimentally verify that our coordination technique leads to less variable orders (i.e. the standard deviation of orders is reduced) while inventory levels are not excessively high but sufficient to avoid backorders.

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INDEX TERMS

Primary Classification:
  I. Computing Methodologies
  I.2 ARTIFICIAL INTELLIGENCE
        I.2.11 Distributed Artificial Intelligence
            Subjects: Multiagent systems

General Terms:
Experimentation, Management, Performance

Keywords:
bullwhip effect, decentralized coordination, multi-agent systems, supply chain, tokens