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Optimization in Supply Chain Planning
Optimization in
Supply Chain Planning

Dr. Christopher Sürie Expert Consultant SCM Optimization

Optimization in Supply Chain Planning Dr. Christopher Sürie Expert Consultant SCM Optimization
Agenda
Agenda
Introduction
Introduction
Hierarchical Planning Approach and Modeling Capability
Hierarchical Planning Approach and Modeling Capability
Optimizer Architecture and Optimization Strategies
Optimizer Architecture and Optimization Strategies
Customer Cases
Customer Cases
System Demo
System Demo
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 2 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 2
Introduction: Supply Chain Management
Introduction: Supply Chain Management
in order to  Plant Supplier SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie,
in order to
Plant
Supplier
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 3
DC Customer
warehouses and stores
Set of approaches utilized
Supply Chain Management:
to integrate suppliers, manufactures,
Prerequisite: Integrated Supply Chain Model
minimize cost while satisfying service level requirements
at
the correct time
to/from the correct locations
with the correct quantity
and distributed
that merchandise is produced
so
Introduction: Supply Chain Management
Introduction: Supply Chain Management
Introduction: Supply Chain Management ... Lane Demands Product Resource Orders Master Data Model Capacity Profiles Production
... Lane Demands Product Resource Orders Master Data Model Capacity Profiles Production Process Model (PPM) Location
...
Lane
Demands
Product
Resource
Orders
Master Data Model
Capacity Profiles
Production Process Model (PPM)
Location (Plant, DC, Supplier,
Operational Data
)
DC Customer SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 4 Supplier Resource Product
DC Customer
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 4
Supplier
Resource
Product
Plant
mySAP SCM Solution Overview Measure Supply Chain Performance Management Strategize Plan Supplier Customer Supply Chain Design
mySAP SCM Solution Overview
Measure
Supply Chain Performance Management
Strategize
Plan
Supplier
Customer
Supply Chain Design
Demand and
Supply Planning
Supply
Supply
Chain
Chain
Exchange
Exchange
Source
Make
Deliver
Network
Network
Direct
Order
Manufacturing
Procurement
Fulfillment
Supply Chain Collaboration
Partner
Partner
Collaborate
Track
Supply Chain Event Management
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 5
Supply Chain Collaboration
Collaborate
Supply Chain Planning Matrix
Supply Chain Planning Matrix

long-

term

long- term
long- term short- term

short-

short-

term

Detailed Sales Production Distribution Procurement promise to Available planning Demand Transportation Production planning planning planning requirements
Detailed
Sales
Production
Distribution
Procurement
promise
to
Available
planning
Demand
Transportation
Production
planning
planning
planning
requirements
Material
Strategic network planning
Master planning
planning
scheduling
Distribution

(Stadtler/Kilger, 2005)

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 6 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 6
Agenda
Agenda
Introduction
Introduction
Hierarchical Planning Approach and Modeling Capability
Hierarchical Planning Approach and Modeling Capability
Optimizer Architecture and Optimization Strategies
Optimizer Architecture and Optimization Strategies
Customer Cases
Customer Cases
System Demo
System Demo
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 7 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 7
How to deal with planning complexity? Basic idea: Hierarchy of relaxations Relaxations are derived by Aggregation

How to deal with planning complexity? Basic idea: Hierarchy of relaxations Relaxations are derived by Aggregation

Time Periods Product Product groups (e.g. ignore country specific documentation in packaging a product) Resource Resource Families (e.g. summarize similar resources into one resource with cumulative capacity) Locations Regions (e.g. aggregate different locations into a transportation zone (postal code areas)

Integration between different relaxations: Disaggregation

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 8 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 8
Hierarchical Planning
Hierarchical Planning
Hierarchical Planning Strategize Supply Chain Design Supply Chain Design Strategize Plan Plan Supply Chain Design Demand
Hierarchical Planning Strategize Supply Chain Design Supply Chain Design Strategize Plan Plan Supply Chain Design Demand
Hierarchical Planning Strategize Supply Chain Design Supply Chain Design Strategize Plan Plan Supply Chain Design Demand

Strategize

Supply Chain Design Supply Chain Design
Supply Chain Design
Supply Chain Design
Strategize Plan
Strategize
Plan

Plan

Supply Chain Design Demand and Demand and Supply Planning Supply Planning
Supply Chain Design
Demand and
Demand and
Supply Planning
Supply Planning
Source Manufacturing Procurement Fulfillment Deliver Direct Order Make
Source
Manufacturing
Procurement
Fulfillment
Deliver
Direct
Order
Make
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 9 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 9
Supply Network Planning (SNP)
Supply Network Planning (SNP)
Combined production and distribution planning Time →→→→ Buckets, max. daily precision Mid-term to long-term planning horizon
Combined production and distribution
planning
Time →→→→ Buckets, max. daily precision
Mid-term to long-term planning horizon
Aggregation
Quantity-based
Supply Network Planning (SNP)
Procurement
Manufacturing
Supply Chain Design
Strategize
Products, Resources →→→→ Families
Source
Fulfillment
Order
Plan
Direct
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 10 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 10
Supply Network Planning Procedures
Supply Network Planning Procedures

SNP Heuristics

Material availability constraints Rule-based First feasible plan

CTM (Capable To Match)

Material availability and production capacity constraints Constraint-based propagation with backtracking search First feasible plan

SNP Optimizer

Material availability and all capacity constraints (MI)LP and others Cost-based optimization

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 11 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 11
SNP Optimizer Application
SNP Optimizer Application

Sourcing

Product-Mix

Which products and how much of them should be produced, transported, procured and stored?

Technology-Mix

Which recipes (PPMs) should be applied? Which transportation type should be used? Which resource should be used?

Temporal: When should we produce, transport, procure and store?

Spatial: Where should we produce, procure and store? Wherefrom and

whereto should we transport?

Finite Planning Lot-Sizing

Multi-Level-Capacitated Lot Sizing (MLCLSP)

Campaign Planning

Inventory Control

Target Days of Supply

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 12 Shelf Life 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 12
Shelf Life
Supply Network Optimization: Model Building
Supply Network Optimization: Model Building
Discrete Lots Minimal Lots Fixed Resource Consumption Piecewise linear Costs PPM Produce Production Capacity
Discrete Lots
Minimal Lots
Fixed Resource Consumption
Piecewise linear Costs
PPM
Produce
Production
Capacity
Products
Products
Handling-In Capacity Capacity Transport Handling-Out Discrete Lots Minimal Lots Piecewise linear Costs
Handling-In
Capacity
Capacity
Transport
Handling-Out
Discrete Lots
Minimal Lots
Piecewise linear Costs
Transport Capacity
Transport
Capacity
Safety Stock Store with Shelf life Storage Capacity
Safety Stock
Store
with Shelf life
Storage
Capacity
Piecewise linear Costs Procure
Piecewise linear Costs
Procure

Satisfy Demand

with Demand Classes Delay Costs Non-Delivery Costs

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 13 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 13
SNP Optimization Run
SNP Optimization Run
Demand Forecast
Demand Forecast
SNP Optimization Run Demand Forecast Resource Selection SNP Optimization SAP AG 2005, Optimization in SC Planning,
SNP Optimization Run Demand Forecast Resource Selection SNP Optimization SAP AG 2005, Optimization in SC Planning,
SNP Optimization Run Demand Forecast Resource Selection SNP Optimization SAP AG 2005, Optimization in SC Planning,

Resource Selection

SNP Optimization

SNP Optimization Run Demand Forecast Resource Selection SNP Optimization SAP AG 2005, Optimization in SC Planning,
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 14 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 14
Supply Network Optimization: Lot-Sizing
Supply Network Optimization: Lot-Sizing

Multi-Level Capacitated Lot Sizing Problem (MLCLSP)

Setup cost and/or consumption in each bucket Good results

Setup cost small compared to storage cost ( Small lots)

Supply Network Optimization: Lot-Sizing Multi-Level Capacitated Lot Sizing Problem (MLCLSP) Setup cost and/or consumption in each

Setup consumption << bucket capacity

Bad results

Setup cost large compared to storage cost (large lots)

Setup consumption big compared to bucket capacity

Supply Network Optimization: Lot-Sizing Multi-Level Capacitated Lot Sizing Problem (MLCLSP) Setup cost and/or consumption in each
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 15 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 15
Supply Network Optimization: Lot-Sizing
Supply Network Optimization: Lot-Sizing

Proportional Lot Sizing Problem (PLSP)

Setup cost and/or setup consumption only if different PPM starts At most one startup per bucket

Supply Network Optimization: Lot-Sizing Proportional Lot Sizing Problem (PLSP) Setup cost and/or setup consumption only if

Constraints on cross-period lots (= campaign quantity)

Minimal campaign quantity

Supply Network Optimization: Lot-Sizing Proportional Lot Sizing Problem (PLSP) Setup cost and/or setup consumption only if

Campaign quantity integer multiple of batch size

Supply Network Optimization: Lot-Sizing Proportional Lot Sizing Problem (PLSP) Setup cost and/or setup consumption only if
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 16 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 16
Manufacturing (PP/DS)
Manufacturing (PP/DS)
Supply Chain Design Strategize
Supply Chain Design
Strategize
Manufacturing Source Plan horizon Make planning Manufacturing (PP/DS) Combined material and capacity Short-term to mid-term planning
Manufacturing
Source
Plan
horizon
Make
planning
Manufacturing (PP/DS)
Combined material and capacity
Short-term to mid-term planning
Direct
Supply Planning
Order based
Time continuous
Fulfillment
Order
Demand and
Deliver
Procurement
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 17 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 17
PP/DS Planning Procedures
PP/DS Planning Procedures

PP/DS Heuristics

Material availability, single-level finite Priority-based planning First partial plan

CTM (Capable To Match)

Material availability and production capacity constraints Constraint-based propagation with backtracking search First feasible plan

PP/DS Optimizer

All constraints Genetic Algorithm and Constraint Programming Cost-based Optimization

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 18 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 18
PP/DS Optimizer Application
PP/DS Optimizer Application

Feasible compact schedule Delay Reduction Makespan Minimization Setup Minimization

Time

Cost

Resource Selection

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 19 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 19
PP/DS Optimizer: Model Overview
PP/DS Optimizer: Model Overview
earliest starting time due date, deadline delay costs sequence dependent setup costs Time Windows Distances Setup
earliest starting time
due date, deadline
delay costs
sequence dependent
setup costs
Time Windows
Distances
Setup
(with calendars) Resource costs maximal minimal
(with calendars)
Resource costs
maximal
minimal

Alternative resources

Resource Selection

Resources Unary
Resources
Unary
PP/DS Optimizer: Model Overview earliest starting time due date, deadline delay costs sequence dependent setup costs
Product Flow discrete continuous
Product Flow
discrete
continuous
Storage resources
Storage
resources
 SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 20 Multi-Cap Resources
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 20
Multi-Cap
Resources
PP/DS Optimization Run
PP/DS Optimization Run

SNP

PP run

PP/DS Optimization Run SNP PP run DS optimization SAP AG 2005, Optimization in SC Planning, Dr.
PP/DS Optimization Run SNP PP run DS optimization SAP AG 2005, Optimization in SC Planning, Dr.

DS

optimization

PP/DS Optimization Run SNP PP run DS optimization SAP AG 2005, Optimization in SC Planning, Dr.
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 21 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 21
PP/DS Integrated hierarchical planning SNP
PP/DS
Integrated hierarchical planning
SNP

Planning only in SNP horizon

Release SNP Orders only PP/DS

horizon

Respect PP/DS orders as fixed

capacity reduction

material flow

Respect PP/DS setup state

Respect pegged SNP Orders as due

dates

No capacity reduction

But material flow

No restrictions for scheduling

PP/DS orders

PP/DS Integrated hierarchical planning SNP Planning only in SNP horizon Release SNP Orders only PP/DS
PP/DS Horizon PP/DS SNP
PP/DS Horizon
PP/DS
SNP
PP/DS Integrated hierarchical planning SNP Planning only in SNP horizon Release SNP Orders only PP/DS
PP/DS Integrated hierarchical planning SNP Planning only in SNP horizon Release SNP Orders only PP/DS
SNP Horizon
SNP Horizon
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 22 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 22
VSR: Model Building
VSR: Model Building

Classical vehicle routing problems: CVRP, CVRPTW

9 time window [l j ,r j ] time window [l,r] demand b j capacity c
9 time window [l j ,r j ]
time window [l,r]
demand b j
capacity c
supply a
m vehicles
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 23
4
6
8
3
2
5
7
1
VSR: Model Building (ct‘d)
VSR: Model Building (ct‘d)

Extensions towards APO VSR (1):

Order-based model

Source location and destination location per order (Pickup and delivery problem)

 
5
5

O4

6
6
 
O1 2
O1
2
1
1
3
3

O2

4
4

O3

Quantity regarding loading dimensions (tons, m 3 ,

)

Material type (chemicals, food,

)

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 24 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 24
VSR: Model Building (ct‘d)
VSR: Model Building (ct‘d)

Extensions towards APO VSR (2):

Cost for not delivering an order Soft/hard time constraints per order:

Earliest date for pickup

Due date for pickup

Earliest date for delivery

Due date for delivery

cost

] [ ] [ Early Early Late Late Pickup Delivery Delivery Pickup
]
[
]
[
Early
Early
Late
Late
Pickup
Delivery
Delivery
Pickup

time

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 25 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 25
VSR: Model Building (ct‘d)
VSR: Model Building (ct‘d)

Extensions towards APO VSR (3):

Per vehicle:

Travel characteristics (time, distance per lane)

Start location and end location

Constraints

Capacity per loading dimension (tons, m 3 ,

)

Limit for time, distance, number of stops

Break calendar

Costs:

Fixed cost

Traveled time

Traveled distance

Number of stops

Distance x Load (e.g. miles x tons)

Vehicle type = vehicles with identical travel & cost characteristics

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 26 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 26
VSR: Model Building (ct‘d)
VSR: Model Building (ct‘d)

Extensions towards APO VSR (4):

Per location:

Deliveries require inbound resource

Opening times

Capacities

Pickups require outbound resource

Opening times

Capacities

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 27 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 27
VSR: Model Building (ct‘d)
VSR: Model Building (ct‘d)

Extensions towards APO VSR (5):

Incompatibility constraints:

Between material types

Between vehicle types and material types

Between vehicle types and locations

Schedule vehicles (e.g. trains, ships)

Route and schedule is fixed a priori

Hubs

Indirect shipment through hub(s) versus direct shipment

Maximum waiting time at hub

1
1
H2
H2
H1
H1
2
2
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 28 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 28
Agenda
Agenda
Introduction
Introduction
Hierarchical Planning Approach and Modeling Capability
Hierarchical Planning Approach and Modeling Capability
Optimizer Architecture and Optimization Strategies
Optimizer Architecture and Optimization Strategies
Customer Cases
Customer Cases
System Demo
System Demo
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 29 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 29
Best of Breed Challenge: Generic Optimizer Generic and
Best of Breed
Challenge: Generic Optimizer
Generic
and

planning level

vertical industries

run time requirement

model complexity (size, constraints, objectives)

Generic Model (-> planning level)

aggregated planning (LP / MILP)

detailed planning (scheduling)

Customization (-> vertical industries)

specialization the generic model to customer problem

scripting the strategies (decomposition, goal programming)

Scalability (-> run time)

greedy versus complex optimizations strategies

parallelization

Open Architecture

internal: adding new special optimizer (software evolution)

external: integration of optimizer packages SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie,
external: integration of optimizer packages
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 30
SNP Optimizer Architecture
SNP Optimizer Architecture
GUI Control Checking Reporting
GUI
Control
Checking
Reporting
LiveCache/DB
LiveCache/DB
Model Generator
Model Generator
SNP Optimizer Architecture GUI Control Checking Reporting LiveCache/DB Model Generator Core-Model Time- Priority- Resource- Product- Meta-Heuristics
Core-Model
Core-Model
SNP Optimizer Architecture GUI Control Checking Reporting LiveCache/DB Model Generator Core-Model Time- Priority- Resource- Product- Meta-Heuristics
SNP Optimizer Architecture GUI Control Checking Reporting LiveCache/DB Model Generator Core-Model Time- Priority- Resource- Product- Meta-Heuristics

Time-

Priority-

Resource-

Product-

Meta-Heuristics

Decomposition

Decomposition

Decomposition

Decomposition

SNP SNP LP/MILP LP/MILP Rule based Deployment Basic-Optimizers
SNP
SNP
LP/MILP
LP/MILP
Rule based
Deployment
Basic-Optimizers
 SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 31
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 31
Scheduling Optimizer Architecture
Scheduling Optimizer Architecture
GUI Control Reporting Checking
GUI
Control
Reporting
Checking
LiveCache
LiveCache
Model Generator
Model Generator
Scheduling Optimizer Architecture GUI Control Reporting Checking LiveCache Model Generator Core Model Meta-Heuristics Decomposition Multi Agent
Core Model
Core Model
Scheduling Optimizer Architecture GUI Control Reporting Checking LiveCache Model Generator Core Model Meta-Heuristics Decomposition Multi Agent
Scheduling Optimizer Architecture GUI Control Reporting Checking LiveCache Model Generator Core Model Meta-Heuristics Decomposition Multi Agent

Meta-Heuristics

Decomposition

Multi Agent

Bottleneck

Time

Constraint Genetic Sequence Campaign Programming Algorithm Optimizer Optimizer Basic Optimizer
Constraint
Genetic
Sequence
Campaign
Programming
Algorithm
Optimizer
Optimizer
Basic Optimizer
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 32 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 32
Mastering the algorithmic complexity: Decomposition
Mastering the algorithmic complexity: Decomposition

Global versus local optimality -> SNP + DS

Local optimality depends on neighborhood

High solution quality by local optimization

Local Optimization = Decomposition

Decomposition strategies

SNP: time, resource, product, procurement

DS: time, resource

(Parallelization by “Agents”)

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 33 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 33
SNP Product Decomposition
SNP Product Decomposition
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 34 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 34
SNP Time Decomposition
SNP Time Decomposition
2 3 solve store solved solved 3-6 4 5 2 1 1
2
3
solve
store
solved
solved
3-6
4
5
2
1
1

6

SNP Time Decomposition 2 3 solve store solved solved 3-6 4 5 2 1 1 6

merge

merge extract

extract

Decomposition

Time-

LP/MILP SNP
LP/MILP
SNP
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 35 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 35
DS Time Decomposition - Local Improvement
DS Time Decomposition - Local Improvement

Resources

Current window
Current window

Time

Gliding window script

  • 1. Optimize only in current window

  • 2. Move window by a time delta

  • 3. Go to first step

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 36 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 36
DS Metaheuristics - Bottleneck
DS Metaheuristics - Bottleneck

Resources

 
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
 
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
DS Metaheuristics - Bottleneck Resources Bottleneck Time Bottleneck Script 1. Determine bottleneck 2. Schedule bottleneck resources
Bottleneck
Bottleneck

Time

Bottleneck Script

  • 1. Determine bottleneck

  • 2. Schedule bottleneck resources only

  • 3. Fix sequence on bottleneck resource

  • 4. Schedule all resources

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 37 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 37
VSR: The Optimizer
VSR: The Optimizer

„Generic“ Optimizer Preprocessing

Which orders cannot be delivered at all?

Which order can be processed by which vehicle?

Postprocessing

Shift travel activities forward or backward

S-1 S-1 1-2 1-2 D1 D1 P1 P1
S-1
S-1
1-2
1-2
D1
D1
P1
P1

(forward)

(backward)

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 38 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 38
VSR: The Optimizer (ct‘d)
VSR: The Optimizer (ct‘d)

Evolutionary local search (ELS) with small population (3)

Uses GENEAL (GENeral Evolutionary Algorithm Library)

Direct solution representation

Assignment of orders to vehicles Routing of activities on vehicles

Scheduling of activities on vehicles

Each „atomic“ move has three phases:

1.

Change assignment

2.

Change routing

3.

Change scheduling

19 „atomic“ moves, classified into

Assignment moves

Routing moves

Scheduling moves

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 39 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 39
Agenda
Agenda
Introduction
Introduction
Hierarchical Planning Approach and Modeling Capability
Hierarchical Planning Approach and Modeling Capability
Optimizer Architecture and Optimization Strategies
Optimizer Architecture and Optimization Strategies
Customer Cases
Customer Cases
System Demo
System Demo
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 40 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 40
Challenges in modeling real-world problems
Challenges in modeling real-world problems

Solution

model detail Optimal (fixed run-time) Model detail detailed Model too quality gap acceptability solutions Business of
model detail
Optimal
(fixed run-time)
Model detail
detailed
Model too
quality gap
acceptability
solutions
Business
of computed
Model too
simplified

Generic nature of the SNP optimization model restricts exploitation of specific problem structure

SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 41 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 41
Agenda
Agenda
Introduction
Introduction
Hierarchical Planning Approach and Modeling Capability
Hierarchical Planning Approach and Modeling Capability
Optimizer Architecture and Optimization Strategies
Optimizer Architecture and Optimization Strategies
Customer Cases
Customer Cases
System Demo
System Demo
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 42 
SAP AG 2005, Optimization in SC Planning, Dr. Christopher Sürie, 42