Optimization of resource allocation in distributed production networks

Abstract

The development of the stochastic approach, based on queueing models and simulation, to optimize of resources allocation, in distributed production networks (DPN), is examined in the paper. The task of performance optimization of DPN is formulated as a non-linear integer programming problem with stochastic parameters. In our previous works, a branch and bound algorithm based on sequential use of queueing models and simulation is proposed. The analytical models are used for Lower Bound determination and choice of the optimal branching direction. The simulation is used for validation of analytical results and for computation of Upper Bound and stop condition of the algorithm. The developed methods have been used for optimization of corporate computer and telecommunication networks, High-Tech assembly manufacturing, and a printing and publishing company. In this paper, we show a new model and some additional results of simulation study for validation of models used.