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Network Optimization using AIMMS in the Analytics & Visualization Era

Dr. Ovidiu Listes Senior Consultant

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• Analytics, Optimization, Networks • AIMMS: The Modeling System

• Network Models Building

• Dealing with Complexity and Uncertainty • From Model to Application

• Network Planning Applications

• More about AIMMS

Analytics

Optimization Networks

Decision Support/(Web) UI Apps Solution/Visualization

Modeling

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The New Trend: Analytics

Better Decisions based on Data Analysis

Analytics at Work (2010): Smarter Decisions, Better Results Competing on Analytics (2007):

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Getting the Optimization Edge

Competitive advantage through Optimization

Why do some companies become industry leaders, while others never rise to the top?

… these companies posses an

ability to make complex decisions faster, more accurately, and more

consistently than their competition … because they are big users of

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The Field of Network Flows

Optimization based on the Network concept

Fundamental field in Analytics,

Operations Research & Optimization

… solid theory

… rich collection of algorithms … vast area of applications … eventually using

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AIMMS: integrated & interactive modeling system

• Modeling language

• Extensive development tools • Seamless solvers links

• Integrated GUI

• Advanced deployment options • Development of AIMMS Apps • Win UI and Web UI

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AIMMS Features (selection) • Point & Click / Drag & Drop

IDE

• Global & local compilation • Procedural execution &

definitions

• Advanced diagnostic &

development tools: debugger, profiler, MP Inspector, data pages

• Data management & batch run options

• Modeling of time constructs • Broad class of commercial and

open source solvers

• Broad call of model types (LP, MIP, NLP, MINLP, CP, etc.)

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AIMMS Features (selection cont’d) • Update, call-back, parallel solver

options

• Extensive matrix update functionality

• Advanced & interactive GUI

objects: Gantt-chart, Pivot table, Network object, etc. (for analyst, developer, and end user)

• GIS connectivity

• Units, Multi-Language & Conventions

• GUI Templates for standard look-and-feel of applications

• Multi-Developer Support

• Advanced Deployment options: AIMMS PRO and Web UI

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Network Flow Models

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Network Flow Models

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Network Flow Models

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Facility Location Models

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Facility Location Models

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Facility Location Models

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Facility Location Models

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Petrochemical Processes Models

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Petrochemical Processes Models

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Petrochemical Processes Models

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Dealing with

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Production and Distribution Model

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Indices – l Locations – f Factories – c Distribution Centers – t Periods – s Scenarios • Parameters – Dlts Demand [hl] • Variables – ylts Stock [hl] – qlt Production [hl] – xfcts Transport [TL]

Demand is uncertain  stochastic scenarios

Rolling horizon, (time) decomposition

Production and Distribution Model

Stochastic Scenarios & Rolling Horizon

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Network Design Model

Problem Description

Undirected graph (V,E); capacity Ce and cost ce

Each edge e ∈ E can be used in both directions −> (V,A) • Set of commodities Q with origin s(q) and destination t(q) • Demand value dq for every q ∈ Q

Goal: find cheapest capacities on each e ∈ E so that the

resulting network can satisfy each demand 1,1 3,1 1,3 3,1 1,1 1,2 D E C 3,2 2 2 A B

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Network Design Model MIP Formulation Minimize ∑e∈E ceye Subject to ∑q∈Q (xq ij + xqji) ≤ Ceyee=(i,j) ∈ E ∑j∈V:(j,i) ∈A xq ji – ∑j∈V:(i,j) ∈A xqij = dqi ∈ V, q ∈ Q x ≥ 0 y ≥ 0 and integer

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Network Design Model

Automatic Benders Decomposition in AIMMS

Using GMP Benders Decomposition system module:

myGMP := GMP::Instance::Generate(NetworkDesignMP); GMPBenders::DoBendersDecomposition(

/* GMP */ myGMP,

/* MasterVariables */ AllIntegerVariables,

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Flexibility in Manufacturing Networks

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Flexibility in Manufacturing Networks

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Flexibility in Manufacturing Networks

Demand Uncertainty & Robust Optimization

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Applying Optimization with AIMMS

Iterative & Interactive

Visualize the results and interact with your model using the GUI builder

Deploy to end-users • AIMMS GUI • Custom GUI • Excel add-in • Web • Local or remote Use powerful solvers

or construct your own solution approach Import data from

different sources Create and modify

large models in a clear and concise way

CPLEX …

ODBC OLE DB

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AIMMS PRO is ideally suited for company wide Optimization:

• Allows easy deployment, flexible and fast development • One platform for all optimization apps required

• Accessable, anywhere and anytime

AIMMS PRO & Enterprise App Stores

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AIMMS PRO & Web UI

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Supply Chain Optimization

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Supply Chain Optimization

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Optimized Supply Chain Design

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Optimized Supply Chain Design

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Demand & Supply Data Analytics

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Existing Plant

New Plant

Zip Code

Capacitated location - allocation model with options for expansion of existing capacity and additional side constraints

Demand & Supply Data Analytics

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Allow easy selection for several model options:

• Consider/Don’t consider specific existing plants • Allow/Don’t allow location of new plants

• Select specific location choices allowing for new plants • Tune in the acuracy of the solution process

Allow for group interaction with the model:

• Visualize allocation results

• Compute Key Performance Indicators (KPIs)

• Establish relationships between investment levels

AIMMS apps can easily accommodate all this kind of requirements !

Demand & Supply Data Analytics

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More about AIMMS Use Options

AIMMS, integrated & interactive modeling system

• Modeling language, integrated GUI, direct access to solvers, advanced deployment options, and extensive development tools • Development of AIMMS Apps

AIMMS PRO & Web UI

• Collaboration and deployment platform for AIMMS Apps

• Central optimization and management • Quick delivery of value to end users

Supports the complete optimization chain

• from rapid prototyping to large-scale deployment • from development to operational use

• from single use to multi use

• from desktop to published (Web UI) application

SOURCE: MIT SLOAN Management Review

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THANK YOU !

Questions ?

Dr. Ovidiu Listes

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Next AIMMS Webinar

The next webinar in this series:

“The AIMMS Presolver”

will be presented by Marcel Hunting, AIMMS Optimization Specialist

Join us on July 15, 2015 at

References

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