Supply Chain Simulation for Modeling the Interactions in Freight Movement

Freight movement is a dynamic process involving with complex interaction among many agents by which the commodities are flowed through supply chains. Simulation based model allows such dynamic and complex interaction system to be undertaken. Simulation based multi-agent approach is therefore utilized to model the behaviors of agents and their interactions in supply chains in order that the mechanism of freight movement is better demonstrated. This model simulates day-to-day activities of agents (including, retailers, manufacturers, and suppliers) in product acquisition, production, and distribution. Systematic framework of the proposed model permits wide variety of application. Feedback and learning of freight agents and variation in freight traffic demand can be captured by the proposed model. This paper discusses the on-going research of supply chain simulation and provides the modeling framework, mathematical formulation, and the application of the model to the supply chain of food industry in the Tokyo Metropolitan Area.