Design of material handling system using dynamic simulation and agent-based paradigm

When modelling a supply chain (SC) a model of the processes and products is often required. SC is best thought of as socio - technical system where complex production technologies interact with intelligent, autonomous entities. My personal experience with SC modelling and optimisation shows that better than the application of a set of balance equations similar in structure to those used to model for example chemical processes is to adopt an alternative modelling paradigm when dealing with supply chain dynamics. This new paradigm is called agent - based modelling. In this paper I present a basic framework designed for supply chain modelling and optimisation consisting of several types of agents controlled by a set of algorithms. This framework is realized in Witness simulation software environment supported by Excel for input data loading and outputs upgrading. I apply proposed framework in a task dealing with material handling system design in a production plant coming from machinery industry. This system is based on milk-run supplies feeding production lines with input materials and handling semi-finished and final products through the manufacturing process to warehouse.