A Physarum-Inspired Approach to Optimal Supply Chain Network Design at Minimum Total Cost with Demand Satisfaction

A supply chain is a system which moves products from a supplier to customers. The supply chains are ubiquitous. They play a key role in all economic activities. Inspired by biological principles of nutrients’ distribution in protoplasmic networks of slime mould Physarum polycephalum we propose a novel algorithm for a supply chain design. The algorithm handles the supply networks where capacity investments and product flows are variables. The networks are constrained by a need to satisfy product demands. Two features of the slime mould are adopted in our algorithm. The first is the continuity of a flux during the iterative process, which is used in real-time ∗Corresponding author: Yong Deng, School of Computer and Information Science, Southwest University, Chongqing, 400715, China. Email address: [email protected], [email protected]. Tel/Fax:(86-023)68254555. Preprint submitted to Elsevier March 24, 2014 update of the costs associated with the supply links. The second feature is adaptivity. The supply chain can converge to an equilibrium state when costs are changed. Practicality and flexibility of our algorithm is illustrated on numerical examples.