SUPPLY CHAIN APPLICATION: ENVIRONMENTAL IMPACT

Abstract

Information systems can be designed in a way that responds to the environment. We consider a supply chain management problem: how to place sensors to find leaks in pipeline networks, when the probability of leakage is driven by environmental factors. We use two types of sensors; those which detect leaks, and those which detect the environment. We use techniques from the learning automata literature to build a mechanism. Our proposed approach is dynamic, and can adapt to environmental changes. And its rate of detection is superior to static techniques. This work has implications for the design of any system in which the physical environment shapes the probability of events occurring.

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