Integrated Multi-Agent Based Supply Chain Management in Bangladesh An analysis of prospects & challenges

A Report on: Integrated Multi-Agent Based Supply Chain Management in Bangladesh

Submitted to:

Shah Ridwan Chowdhury Lecturer, Dept. of Management Jagannath University,Dhaka.

Submitted by: 078882512)

1. Anamul Hoq 2. Zakir Munse 3. Krishno Gopal Saha 4. Fazle Rabby

(Roll(Roll- 078882608) (Roll- 078882600) (Roll- 078882460)

5. Mahmudul Hasan Siddique (Roll078882522) 6. Jamil Ahmed (Roll- 078882642)

(Students of BBA 7th semester, Dept. of Management Studies)

Date of Submission: 15th July, 2012.

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LETTER OF TRANSMITTAL

July 15, 2012 The supervisor Shah Ridwan chowdhury Lecturer Department of management studies Jagannath University Dhaka

Sub: Submission of Assignment

Dear sir, Here is the report on integrated multi-agent supply chain management in Bangladesh. I have tried our best effort to gather all necessary information to the concentrated part of the report to enrich it. We believe that with our limited knowledge this report provides a core concept about multi-agent supply chain in Bangladesh. We tried our level best to put meticulous effort for preparing the report. Any shortcomings or flaws may arise as we are very novice in this aspect. We will wholeheartedly welcome any clarification and suggestion about any view and conception disseminated in our report.

Sincerely Yours (All the members of the group) Department of management studies Dhaka, Bangladesh.

Acknowledgement

First of all I would like to be grateful to Allah and my parents and pay my deepest respectable Shah Ridwan Chowdhury, Lecture, Department of management studies Jagannath University Dhaka help me to get the opportunity to do the work . I am also grateful to him for helping me to understand some minute issues as well as those issues which I have failed to understand. We like to give thanks especially to our friends and many individuals, for their Enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof Reading this manuscript.

Table of contents

SL No. 1. 2.

Particulars Executive Summary Introduction I. Objectives of the report II. Scope and Limitation III. Methodology of the report Literature Review Current Scenario Analysis and Findings Recommendation Conclusion Appendix

Page No. 1 2-3

3. 4. 5. 6. 7. 8.

4 5 5-6 7 7 8

Executive summary

In this paper, a MAS-based SCM approach is presented. It addresses the architectural, the planning and the execution aspects of supply chain management. Besides the functional requirements like an integrated SCM scheduling, non-functional requirements like the reliability and the flexibility of the system are also met. The reference architecture and its interfaces and gateways are tested on the basis of a test case scenario. The goal of the evaluation is to prove the feasibility of the approach and gather first experiences and results. In the next step, the system will be evaluated using a real test case scenario that represents an industrial scope and the corresponding complexity. The supply chain that was chosen represents a tractor manufacturer and its suppliers. Due to the closeness of the test case to the automotive industry, the transfer of the results to a broad spectrum of applications is guaranteed. Multi-agent systems (MAS) offer new perspectives compared to conventional, centrally organized architectures in the scope of supply chain management (SCM). Their structure inherently meets the requirements of decentralized supply chains, whereas conventional SCM systems are often restricted in terms of dynamic behavior, handling severe disturbances at supplier sites as well as dealing with highly customized or complex products. Since necessary data are not available within the whole supply chain, an integrated approach for production planning and control taking into account all the partners involved is not feasible. In this paper a MAS architecture integrating various intelligent agent systems is presented to address the problem.

Introduction
A Firms supply chain is a network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and finished products, and distributing the finished products to customers. It links suppliers, manufacturing plants, distribution centers, retail outlets and customers to supply goods and services from source through consumption, Materials, information and payment flow through the supply chain in both directions. Multi-Agent based supply chain: Multi-Agent based supply chain Involves multiple supplies of raw materials of a companys finished products & Services. We can introduce multi agent based supply chain by the help of NIKIS supply chain model.

This figure Illustrates the major entities in nikis supply chain & the flow of information upstream and downstream to co-ordinate the activities involved in buying, making and moving a product shown here is simplified supply

chain with the upstream portion focusing only on the suppliers for sneakers and sneakers soles.

Objective of the report

1. The Objective of the report are as follows. 2. Getting the overview ideal of the supply chain system. 3. Prepare ourselves for the making of executive report for any organization. 4. To face any future challenge. 5. To represent ourselves in different from others persons. 6. To play role to establish multi agent supply chain framework in new firm.

Scope & Limitation

Scope: 1. Getting new idea, view, about Multi agent suppliers. 2. Expansion of knowledge and experience about making a report. 3. Getting inspiration to face future challenge to make a report. Limitation: 1. Unavailable of data. 2. Time consuming. 3. Huge formality.

Methodology of the report

To complete the report we follow the following sources: 1. Management Information systems (Eleventh Edition- Laudon)
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2. Human Resource Management (S.P. Robinns) 3. Supply Chain Management (Second Edition- Donald J. Bowersox) 4. International Business.(Daniels-12th Edition) 5. Internet.

Literature Review
Multi-agent systems (MAS) offer new perspectives compared to conventional, centrally organized architectures in the scope of supply chain management (SCM). Their structure inherently meets the requirements of decentralised supply chains, whereas conventional SCM systems are often restricted in terms of dynamic behaviour, handling severe disturbances at supplier sites as well as dealing with highly customised or complex products. Since necessary data are not available within the whole supply chain, an integrated approach for production planning and control taking into account all the partners involved is not feasible. In this paper a MAS architecture integrating various intelligent agent systems is presented to address the problem. Compared to existing SCM systems, the successful integration of numerous MAS that perform both inter- and intraorganisational planning and execution tasks is an important innovation. Companies face a global market characterised by numerous competitors, a steadily increasing complexity of business processes and a highly turbulent production environment. The business processes have to be highly efficient and need to provide the necessary flexibility to be able to react to shortterm changes of the customer demand and unforeseen events during fulfilment. Supply chains consist of networks formed by co-operating partners that are covering various companies (Original Equipment Manufacturers (OEM), suppliers, subsuppliers, etc.). The global optimisation of the corresponding business processes offers a vast optimisation potential. On the other hand, various problems arise. For example, fluctuating demands multiply and create the so-called bullwhip effect. In addition, the global planning process is hampered by the fact that the companies are not willing to reveal their production data to competitors, unless they are forced to do so by powerful OEMs (as it is common in the automotive industry). This leads to the situation that a global optimisation is hardly feasible today. MAS perfectly suit these demands for global flexibility, co-operation and, at the same time, local autonomy. The individual projects that are involved in the research activities presented in this paper address these problems and offer services in the range of SCM scheduling shop floor production planning and control and proactive tracking and tracing services to guarantee the reliability of supply chain processes in the case of unforeseen disruptions. In this paper, a reference model integrating the mentioned MAS is introduced including interfaces and gateways between the systems. Daniel Frey
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Institute for Process Control and Robotics, Universitt Karlsruhe (TH), Engle-Bunte-Ring 8, 76131 Karlsruhe, Germany frey@ira.uka.de Peer-Oliver Woelk Institute of Production Engineering, University of Hannover, Schlosswender Str. 5, 30159 Hannover, Germany woelk@ifw.uni-hannover.de

Current Scenario
The complexity of managing supply chains results in many different interdependent tasks such as the planning, execution and controlling of production, transportation and warehousing processes. As a consequence, multiple MAS specialising on certain tasks have to interact. The basic scenario focuses on production processes, whereas aspects of transportation can be integrated. In the perspective of Bangladesh it can be said that on the basis of the financial, human resource, Information system, communication system, import export compliance, government intervention, weather condition, political instability communal violence etc. are the obstacles to implement effectively multi agent supply chin system. Although some manufacturing firm follow the integrated multi agent supply chain but they face various problems for the above reasons as well as huge cost and huge performance cycle delivery time to run their operation in Bangladesh.

Findings analysis

1.

Bull weep effect: On recurring problem in supply chain management is bullweep effect

in which information about the demand for a product gets distorted as it passes from one entity to the next across. 2. Push based model:

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When a Company follows Push based model then companys target may not be satisfied. Push based model is flow:

Suppliers
Supply to based forecast forecasts

Manufactures
Purchase

Distributors

retailers
Inventory based on forecasts

Production based on forecasts What is

Customer s Stock
on

3. Identification of sources : The major challenge is the Identification of sources capable of producing the materials in the quantity required. 4. Another challenge considers the protection of a firms intellectual property as products or components are produced and transported.
5. The five challenge relates to understanding import/export compliance

issues. There may be government regulations regarding the volume of a commodity that can be imported before duties or other restrictions are enforced. 6. The sixth challenging relates to communication with suppliers and transportation companies. 7. The Seventh challenge is the need to guarantee the security of the product while it is in transit. Not only does supply chain security require that the product is secure, the process must also secure containers and vehicles both full and empty. Prospects: In the perspective of Bangladesh multi agents based SCM is applicable on the followings. Labour content: In Bangladesh there are available labour people which can be taken by the company at reasonable labour rate. Agro based product: in Bangladesh Company can make agreement with multiple suppliers in case of Agro based product.
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Garments Sectors: In case of cloths industry, the firm can follow the multi agent suppliers. Shipping industry: The Shipping industry also follows the multi agent suppliers. Information technology: In most case Bangladeshi IT firm follows the multi agent suppliers.

Recommendations
On the basis of companys financial position and human resource capability in Bangladesh the following Recommendations are needed for the company. 1. Must follow pull based model (Demand) instead of push based model:

Suppliers

2. Follow just in time strategy to reduce bull-weep effect: If a manufacturer

Manufactur es

Distributors

Retailer s

Customer s

had perfect information about exactly how many unites of product customers wanted. When wanted them, and when they could be produced, it would be possible to implement a highly efficient Just-in-time strategy. Components would arrive exactly at the moment they fewer needed and finished goods would be shipped as they left the assembly line. 3. Improving protection system in intellectual Property. 4. Improving communication infrastructure system. 5. Tariff system must be reduced in case of import from abroad.

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Conclusion
A (Multi-Agent Supply) MAS-based SCM approach is presented. It addresses the architectural, the planning and the execution aspects of supply chain management. Besides the functional requirements like an integrated SCM scheduling, non-functional requirements like the reliability and the flexibility of the system are also met. Multi-agent system monitors orders on every stage of the supply chain using a distributed architecture to detect events that endanger the planned fulfillment. In case of an event (e.g. a disruption in a production line) the ATT system is engaged in a communication with the related partner enterprises and informs them of the event. This output can be used as a trigger for rescheduling plans on an enterprise level or, in case of major events, even in the re-negotiation of the contracts on the inter-enterprise level of the system.

References
1.

Supply Chain Management (Second Edition- Donald J. Bowersox) DISPOWEB project, Dispositive Supply-WebCoordination, [Internet], Available from: http://www.dispoweb.de/ [Accessed 13.3.03]

2.

3. KRASH project, Karlsruhe Robust Agent Shell, [Internet], Available from: http://www.ipd.uka.de/KRASH/ [Accessed 13.3.03] Xiaolong Xuea, Xiaodong Lia, Qiping Shenb, Yaowu Wanga School of Management, Harbin Institute of Technology, PR China Department of Building and Real Estate, The Hong Kong Polytechnic University, HongKong. (Received 1 February 2004; received in revised form 1 July 2004; accepted 1 August 2004)
4.

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