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Managing the Supply Chain An AI Perspective. Mark S. Fox Mihai Barbuceanu, Chris Beck, Andrew Davenport, Mike Gruninger Enterprise Integration Laboratory University of Toronto 4 Taddle Creek Road, Toronto, Ontario M5S 3G8 - PowerPoint PPT Presentation
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Managing the Supply Chain
An AI Perspective
Mark S. Fox
Mihai Barbuceanu, Chris Beck, Andrew Davenport,
Mike Gruninger Enterprise Integration Laboratory
University of Toronto4 Taddle Creek Road, Toronto, Ontario M5S 3G8
tel: 1-416-978-6823 fax: 1-416-971-2479 internet: [email protected]
http://www.ie.utoronto.ca/EIL/
2
The Internet Effect
• The Internet has precipitated a major change in how we view retailing and the supply chain– Purchasing is becoming tightly integrated with
fulfillment
– Customers expect instantaneous response• Produce the product
• Tell me when it will be produced
• Tell me why it cannot be produced
3
Supply Chain Requirements
• The complexity of an enterprise, coupled with uncertainty in the performance of activities, plus the natural distribution of the organization, requires an information architecture where functions are distributed across a networked environment.
And are:
• Available - Informed - Flexible– Aware - Responsive - Smart
4
Problem
• Earlier ERP systems made the transition from static, batch oriented systems, to be more dynamic by incorporating messaging
• Never the less, these systems are still largely static– Most modules run on a batch basis or static sequence– Dynamic responses usually left to the human decision maker
• We need to re-think how we manage the dynamics of the supply chain– Information technology is making it possible to manage the supply
chain in ways not possible ten years ago.
5
Supply Chain Architecture
• A network of intelligent software modules that together dynamically manage the supply chain. Each module– is an expert at its task, thereby optimizing its goals
– coordinates its decisions with other modules, thereby optimizing supply chain wide goals
– quickly responds to changes in cooperation with other modules
6
Information Technology Enablers
• Four technologies are having a significant impact on the achievement of this vision:– The Internet/Web
– Intelligent Agents
– Constraint Directed Reasoning
– Enterprise Models/Ontologies
7
Intelligent Agents
• More and more of the tactical and operational decisions will have to be made by software systems that operate more autonomously than they do today.
• But, these systems will have to be endowed with operating characteristics a generation beyond what is available today.– We have to strike FIIR into our systems: Fast,
Informed, Intelligent Response.
• We call this software "intelligent agents”
8
Supply Chain Management Agents
Logistics Agent
Order Agent
Transport Agent
Factory Agent
Resource Agent
Scheduling Agent
Dispatching Agent
Information Agent
Information Agent
User Agent
User Agent
Enterprise Wide
Per Facility
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Agent Characteristics• Dynamic: Each agent performs its functions asynchronously in response to
events as they occur, modifying its behavior as required.
• Goal Directed: can dynamically construct plans in response to events and adapt
its plans to new situations.
• Intelligent: Each agent is an “expert” in its function.
• Least Commitment: The precision with which decisions are made should be
inversely proportional to the degree of uncertainty.
• Cooperative: Can cooperate with other agents in finding a solution.
• Interactive: May work with people to solve a problem - Intelligent Assistants. It
can respond to queries and explains its decisions.
• Entrusted: Aware of their rights and obligations and therefore trusted.
10
Collaboration
• Cultural Assumption: To enable agents to collaborate, we must make assumptions about how their decisions can be influenced, we call this the "cultural assumption”
Functional Agent
Customer
Management
Market
Operations
• Agents influence each others behavior by communicating:
Goals: Order Acquisition to Assembly Plant:
"Commit 100 yellow widgets on July 14 to
mfg order 49825."
Constraints: on how goals are to be achieved
"Maximum price for the 100 widgets is
$3/widget."
11
Agent Architecture
Coordination
Communication
Knowledge Management
Information Distribution
Obligation
Management
Constraint-Based Reasoning
Conversation
12
Coordination Services
• An organization is a set of agents playing roles constrained by mutual obligations, permissions, interdictions (OPI).
• Obligations triggered by communications in specified situations, create goals in the obliged party.– Incurs costs if not satisfied.– Contradictory obligations exist.
• An agent's behavior is determined by plans assigned to its role constrained by obligations, permissions, interdictions and the local situation.
13
Coordination Plans
• Agents may carry on multiple, multiple conversations with other agents. The framework includes:– conversation objects (both generic classes and instances),
– conversation rules,
– conversation continuation rules,
– error recovery rules, and
– multiple conversation management.
• Coordination plans include both communication with other agents, and invocation of local problem solving methods.
propose/
/reject
reject/
counter/
/counteraccept/accept
/accept
/satisfy
/fail
1
2 3
5
67
4
14
Supply Chain Example
MB-Plant CBOX-Plant
SYS-Plant
DC-US DC-GER
Customers-US Customers-GER
CPU-Chip
Plastic-Board
Components Disks
Memory
Keyboards
Monitors
Power-supplies
Materials Production Dispatching
Planning
Mother-Board Computer-Box
Mother-BoardComputer-US Computer-GER
Distr ibution Center
Supplier / Customer Agent
Plant Agent
Workstation Agent
Bin (One agent manages all)
Memory
DC-US
Production
- 40 Agents- 100 week simulation- Thousands messageexchanged - Thousands conversationscreated<1h run time- Wealth of data collectedand displayed graphically
- Study of coordination protocolsthat handle unexpected events- Quantitative evaluations of these protocols
15
Benefits
• A vision of how information systems will be structured in the future.– Architecture clearly identifies the differing roles of
function, information and user access
– Agents may dynamically respond to change, coordinating their responses with other agents
– Information is distributed to function agents automatically
– Information agents manage the evolution of information
– Users may tap into other agents, to browse, visualize and change information, limited by their authority
16
Agent Problem Solving Reqts
Every functional agent must be able to:
• reason about constraints and optimize a set of goals
• maximize enterprise flexibility by making "least commitment" decisions, i.e., maintaining alternatives as long as possible
• reveal its goals and constraints when necessary
• modify/relax its goals and constraints as part of the negotiation process
17
Constraint-Directed Reasoning
• In the last 15 years, a new problem solving paradigm has emerged: Constraint-Directed Reasoning
• It is able to consider the myriad of constraints that exist in the organization and construct plans/schedules that satisfy constraints and optimize goals.
• It is able to revise these solutions in real-time as changes occur in the market and organization.
• It is able to consider tradeoffs among goals/constraints an relax constraints when necessary.
18
Key Concept
• Identify the constraint that dominates - and deal with it!
Advanced Planning
Marketing
Controler
Tooling
Personnel
Materials
Production Status
Preferences
cutting fluid arrived
run machineat half speed
Joeis ill
toolIsn't ready
cut costmeet thedue date
use facility 1
Scheduling Agent
Maintenance
Prod. Eng.Cell 1
19
Constraint Graph
• An integrated representation of all of the variables, e.g., activity start times, resource assignments, etc., and their constraints.
Task 1
Task 2= Precedence Constraint
= Resource Constraint
Due Date
Utility
No Weekends
Perturbation
ST ET
R1,R2
Solution: An assignment of values to every variable such that all constraints are satisfied.
20
How it Works
•Remove alternatives that do not satisfy the constraints (Constraint Propagation)
•Determine what makes the problem difficult (Measure Textures)
•Identify the most critical constraint and make a decision (Opportunistic Commitment)
•Backtrack if dead end found (Retraction)
Successive Refinement Complete
SchedulePartial
Schedule
21
Step 1: Constraint Propagation
• The domain of a variable may be reduced depending on its linkage to another variable via a constraint
End Time1
Start Time2
Activity 1 Activity 2Before
22
Step 2: Select Decision Point
• Measure Problem Textures: constraint graph properties (e.g., Contention, Reliance)
• Identify Critical Constraint (Opportunism)
Task 1
Task 2
23
Step 3: Commitment
Least commitment decision maintains as many alternatives as long as possible.• Assign/remove resource• Assign/remove start time• Sequence two or more activities • Retract prior commitment
Task 1
Task 2
ConstraintPosting
24
Least Commitment Decisions
• Degree of commitment may vary with domain uncertainty
• Allows for flexible local response to changeActivity1
Latest Finish Time
Earliest Start Time
R1 R2 R3
25
Benefits
• Able to consider the myriad of constraints that exist in real domains
• Able to relax constraints when no feasible solution exists
• Able to negotiate constraints with other agents• Iterative improvement• Anytime performance
26
Information Challenge
• Successful management of the supply chain, whether human or agent-based, requires an operating model of the enterprise that is:– Understood and shared by all participants
– Able to answer the questions necessary to operate the enterprise, and
– As complete, correct and up-to-date as needed.
27
Barrier
• The piecemeal development of information systems has led to systems, that are inter-connected, but cannot communicate because they do not share the same data models.
• ERP products have begun to address this problem, but only within a corporation.
Operations, employees, material
Activities, personnel, resources
28
Barrier
• Much of what we want to know is not represented explicitly in a database, but can be derived from it.
• SQL helps but does not solve the problem, especially if answers have to be deduced from the data
• Cost of writing programs to derive answers to users' questions is very high.
??What % of the cost of my SKUs will reach their expiry date by friday?
29
Is the Internet A Panacea?
• Some believe the Internet solves this problem.– Wrong: Web standards say nothing about content
standards
• Some believe that XML is the solution– Possibly, but most likely a Pandora’s Box unless
standards are quickly enforced!
• What should be standardized?
30
Enterprise Model
• An Enterprise Model is a representation, both definition and description, of the structure, processes, resource and information of an identifiable business, government, or other organizational system.
• The goal of an enterprise model is to achieve model-driven enterprise design and operation.
31
Enterprise Modeling Goals
• To provide an object library that is a shareable, reusable representation of supply chain information and knowledge.
• To define the objects in a precise manner so that it is consistently applied across domains and interpreted by users
• To support supply chain tasks by enabling the answering of questions that are not explicitly represented in the model
• To support model visualization that is both intuitive, simple and consistent
32
Solution: Ontology
• An Ontology is a formal description of entities, their properties and relations among entities.
• An ontology is a set of key distinctions necessary to support reasoning.
• It is generic across domains.
msf 29 Oct 91
Term
inol
ogy
Semantics
Symbology
• Data Dictionary • Object Library
• Definitions • Constraints
• ICONS
33
Spoilage Axiom
Successor axiom for the fluent spoiled:
( a, r, s) holds(spoiled(r), do(a,)) ((¬holds(spoiled(r), ) a=spoilage(r)) holds(spoiled(r), ))
Precondition axiom:
quantity(s,r,q) enables(s,a)
(Poss(a, ) ¬holds(spoiled(r), ))
34
Example Ontologies
Base Ontology:
Activity, State, Time, Causality
Resource
Quality Cost
Agility Organisation
Product
35
Example
• Given– Crates, pallets, and warehouses of resources
• We should be able to answer questions like– How many crates of apples do we have in Warehouse-
1? How many overall?
– How many pallets contain these crates?
– How many apples per crate? How many per pallet? How many per resource unit?
– Where do we have at least 10 boxes of bolts?
36
Example
• Given– SKUs with code age and spoilage limits– Stock levels and min safety levels of SKUs
• We should be able to answer questions like– Will shiptment10 of oranges spoil if they are not
shipped before Friday?– Is any milk spoiled by Wednesday?– Is there any time at which the stock level for bolts at the
Scarborough factory reaches the minimum safety level?
37
Benefits
• A shareable, reusable representation– Minimally, a language for communicating among
legacy agents
• A deductive database able to deduce anwers to common sense questions– Reduces the need for ad hoc report generators and
interfaces
• A standard for visualizing enterprise knowledge– A visual standard across enterprises
38
Conclusion
• Most supply chain systems are based on technologies developed in the 60s and 70s
• Technological changes in the 80s and 90s enable us to create the next generation of supply chain management systems– Internet/Web
– Agency Theory
– Constraint-directed reasoning
– Enterprise Modeling/Ontologies