Gallay, O.

Centralized Versus Decentralized Control - A Solvable Stylized Model in Transportation

Speaker: Gallay Olivier

Eighth Joint Operations Research Days

September 09, 2010

To analyze the potential outcomes resulting from interaction between autonomous decision-making "smart parts" in logistics networks, we propose here an exactly solvable stylized model that is able to quantify how much the dynamics can be enhanced by (fully decentralized) agent-based mechanisms. Cost functions are introduced in order to compare the performances of centralized versus decentralized organization and we are enable to conclude that for time horizons shorter than a critical value, multi-agent interactions generate smaller costs that an optimal effective central controller.

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