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An approach to model reduction of logistic
networks based on ranking
Bernd Scholz-Reiter1
Fabian Wirth2
Sergey Dashkovskiy3
Michael Kosmykov3
Thomas Makuschewitz1
Michael Sch¨onlein2
1
BIBA - Bremer Institut f¨ur Produktion und Logistik GmbH
at the University of Bremen, Bremen, Germany
2
Institute of Mathematics, University of W¨urzburg, W¨urzburg, Germany
3
Centre of Industrial Mathematics, University of Bremen, Bremen, Germany
17-21 August 2009, LDIC’09, Bremen, Germany
Centre for
Industrial Mathematics
Outline
1 Introduction
2 Ranking in logistic networks
3 Model Reduction
4 Conclusions and further research
2 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Characteristics of the practical example
3 production sites for pumps
5 distribution centres
33 first and second-tier suppliers
for the production of pumps
90 suppliers for components that
are needed for the assembly of
pump sets
More than 1000 customers
3 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Approach for the analysis of large logistic networks
1 Starting from a real world logistic
network a model is obtained
2 Identification of important and
less important locations with
ranking
3 Dependent on the rank of
locations a model of lower size is
set up
4 Analysing of the model of lower
size
4 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Modelling
We model a logistic network as a
weighted graph where only mate-
rial flows are taken into account.
5 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Modelling
We model a logistic network as a
weighted graph where only mate-
rial flows are taken into account.
Weighted adjacency matrix A of the graph:
A =








0 0 0 0 0 6
7 0 0 8 0 0
4 5 0 0 7 0
0 0 2 0 0 0
0 11 0 0 0 0
6 0 0 0 0 0








5 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Rank of location
The importance of logistic net-
work location depends on:
importance of receiving
locations
material flows to these
locations
NRi = α
n
j=1
aij NRj + (1 − α)1
n , 0 ≤ α ≤ 1
Formulation as an eigenvector problem:
NR = G · NR, NR = (0.1040; 0.2455; 0.2016; 0.2056; 0.1778; 0.0655)T
6 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Matrix properties
A matrix A is called column-normalized if for all i = 1, . . . , n
n
j=1
aij =
1, if there exists j such that aij = 0
0, otherwise
A matrix A is column-stochastic if
n
j=1
aij = 1 for all i = 1, . . . , n.
It is called primitive if there exists a positive integer k such that the
matrix Ak
has only positive elements.
We call an adjacency matrix A irreducible if the corresponding graph
is strongly connected, i.e., for every nodes i and j of the graph there
exists a sequence of directed edges connecting i to j. Note that any
primitive matrix is irreducible.
7 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Transformation steps
Column-normalization:
H = Hij , Hij =



aij
k∈Id
j
akj
= aij , if
k∈Id
j
akj = 0
0, otherwise
Make the matrix stochastic:
S = H + ebT
n , e = (1, . . . , 1)T
∈ Rn
, bi = 1, if
n
j=1
Hji = 0 and bi = 0
otherwise.
Making the matrix primitive:
G = αS + (1 − α)E, E = eeT
n
8 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Eigenvector problem
The problem of finding a right-eigenvector:
NR = G · NR
is equivalent to the system of linear equations
NRi = α
n
j=1
aij NRj + (1 − α)1
n .
9 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Eigenvector problem
The problem of finding a right-eigenvector:
NR = G · NR
is equivalent to the system of linear equations
NRi = α
n
j=1
aij NRj + (1 − α)1
n .
As matrix G is stochastic and primitive from Perron-Frobenius theorem it
follows that the solution exists and is unique.
9 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Rules for model reduction
1 Exclusion of low-ranked locations connected to only one
location
Locations with low ranks that are connected to only one location
might by excluded in the reduced model
2 Aggregation of low-ranked locations
Low-ranked locations are aggregated with each other by summing up
the weights of their links accordingly if they are connected by one of
the following two types to the network:
paralell
sequential
3 Exclusion of sub-networks of low-ranked locations connected
to only one important location
Sub-networks of locations that are connected to the rest of the
network only by one location can be modeled as a single location.
10 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Exclusion of low-ranked locations connected to only
one location
Figure: Original network.
11 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Exclusion of low-ranked locations connected to only
one location
Figure: Original network. Figure: Reduced network.
11 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Aggregation of low-ranked locations connected
parallely
Figure: Original network.
12 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Aggregation of low-ranked locations connected
parallely
Figure: Original network. Figure: Reduced network.
12 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Aggregation of low-ranked locations connected
sequentially
Figure: Original network.
13 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Aggregation of low-ranked locations connected
sequentially
Figure: Original network. Figure: Reduced network.
13 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Exclusion of sub-networks of low-ranked locations
connected to only one important location
Figure: Original network.
14 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Exclusion of sub-networks of low-ranked locations
connected to only one important location
Figure: Original network.
Figure: Reduced network.
14 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Complex example
Figure: Original network.
Figure: Reduced network.
15 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Conclusions and further research
Large-logistic network has been
modeled as a weighted graph
An approach of node ranking
was proposed
Introduced 4 rules allows reduce
the size of the model
A theoretical analysis of
reduction rules has to be
provided
The reduced model can be
studied
16 / 17Introduction Ranking Reduction rules Conclusions and further research
Centre for
Industrial Mathematics
Thank you for your attention
17 / 17Introduction Ranking Reduction rules Conclusions and further research

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An approach to model reduction of logistic networks based on ranking

  • 1. An approach to model reduction of logistic networks based on ranking Bernd Scholz-Reiter1 Fabian Wirth2 Sergey Dashkovskiy3 Michael Kosmykov3 Thomas Makuschewitz1 Michael Sch¨onlein2 1 BIBA - Bremer Institut f¨ur Produktion und Logistik GmbH at the University of Bremen, Bremen, Germany 2 Institute of Mathematics, University of W¨urzburg, W¨urzburg, Germany 3 Centre of Industrial Mathematics, University of Bremen, Bremen, Germany 17-21 August 2009, LDIC’09, Bremen, Germany
  • 2. Centre for Industrial Mathematics Outline 1 Introduction 2 Ranking in logistic networks 3 Model Reduction 4 Conclusions and further research 2 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 3. Centre for Industrial Mathematics Characteristics of the practical example 3 production sites for pumps 5 distribution centres 33 first and second-tier suppliers for the production of pumps 90 suppliers for components that are needed for the assembly of pump sets More than 1000 customers 3 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 4. Centre for Industrial Mathematics Approach for the analysis of large logistic networks 1 Starting from a real world logistic network a model is obtained 2 Identification of important and less important locations with ranking 3 Dependent on the rank of locations a model of lower size is set up 4 Analysing of the model of lower size 4 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 5. Centre for Industrial Mathematics Modelling We model a logistic network as a weighted graph where only mate- rial flows are taken into account. 5 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 6. Centre for Industrial Mathematics Modelling We model a logistic network as a weighted graph where only mate- rial flows are taken into account. Weighted adjacency matrix A of the graph: A =         0 0 0 0 0 6 7 0 0 8 0 0 4 5 0 0 7 0 0 0 2 0 0 0 0 11 0 0 0 0 6 0 0 0 0 0         5 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 7. Centre for Industrial Mathematics Rank of location The importance of logistic net- work location depends on: importance of receiving locations material flows to these locations NRi = α n j=1 aij NRj + (1 − α)1 n , 0 ≤ α ≤ 1 Formulation as an eigenvector problem: NR = G · NR, NR = (0.1040; 0.2455; 0.2016; 0.2056; 0.1778; 0.0655)T 6 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 8. Centre for Industrial Mathematics Matrix properties A matrix A is called column-normalized if for all i = 1, . . . , n n j=1 aij = 1, if there exists j such that aij = 0 0, otherwise A matrix A is column-stochastic if n j=1 aij = 1 for all i = 1, . . . , n. It is called primitive if there exists a positive integer k such that the matrix Ak has only positive elements. We call an adjacency matrix A irreducible if the corresponding graph is strongly connected, i.e., for every nodes i and j of the graph there exists a sequence of directed edges connecting i to j. Note that any primitive matrix is irreducible. 7 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 9. Centre for Industrial Mathematics Transformation steps Column-normalization: H = Hij , Hij =    aij k∈Id j akj = aij , if k∈Id j akj = 0 0, otherwise Make the matrix stochastic: S = H + ebT n , e = (1, . . . , 1)T ∈ Rn , bi = 1, if n j=1 Hji = 0 and bi = 0 otherwise. Making the matrix primitive: G = αS + (1 − α)E, E = eeT n 8 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 10. Centre for Industrial Mathematics Eigenvector problem The problem of finding a right-eigenvector: NR = G · NR is equivalent to the system of linear equations NRi = α n j=1 aij NRj + (1 − α)1 n . 9 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 11. Centre for Industrial Mathematics Eigenvector problem The problem of finding a right-eigenvector: NR = G · NR is equivalent to the system of linear equations NRi = α n j=1 aij NRj + (1 − α)1 n . As matrix G is stochastic and primitive from Perron-Frobenius theorem it follows that the solution exists and is unique. 9 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 12. Centre for Industrial Mathematics Rules for model reduction 1 Exclusion of low-ranked locations connected to only one location Locations with low ranks that are connected to only one location might by excluded in the reduced model 2 Aggregation of low-ranked locations Low-ranked locations are aggregated with each other by summing up the weights of their links accordingly if they are connected by one of the following two types to the network: paralell sequential 3 Exclusion of sub-networks of low-ranked locations connected to only one important location Sub-networks of locations that are connected to the rest of the network only by one location can be modeled as a single location. 10 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 13. Centre for Industrial Mathematics Exclusion of low-ranked locations connected to only one location Figure: Original network. 11 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 14. Centre for Industrial Mathematics Exclusion of low-ranked locations connected to only one location Figure: Original network. Figure: Reduced network. 11 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 15. Centre for Industrial Mathematics Aggregation of low-ranked locations connected parallely Figure: Original network. 12 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 16. Centre for Industrial Mathematics Aggregation of low-ranked locations connected parallely Figure: Original network. Figure: Reduced network. 12 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 17. Centre for Industrial Mathematics Aggregation of low-ranked locations connected sequentially Figure: Original network. 13 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 18. Centre for Industrial Mathematics Aggregation of low-ranked locations connected sequentially Figure: Original network. Figure: Reduced network. 13 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 19. Centre for Industrial Mathematics Exclusion of sub-networks of low-ranked locations connected to only one important location Figure: Original network. 14 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 20. Centre for Industrial Mathematics Exclusion of sub-networks of low-ranked locations connected to only one important location Figure: Original network. Figure: Reduced network. 14 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 21. Centre for Industrial Mathematics Complex example Figure: Original network. Figure: Reduced network. 15 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 22. Centre for Industrial Mathematics Conclusions and further research Large-logistic network has been modeled as a weighted graph An approach of node ranking was proposed Introduced 4 rules allows reduce the size of the model A theoretical analysis of reduction rules has to be provided The reduced model can be studied 16 / 17Introduction Ranking Reduction rules Conclusions and further research
  • 23. Centre for Industrial Mathematics Thank you for your attention 17 / 17Introduction Ranking Reduction rules Conclusions and further research