The Aero-engine Value Chain Under Future Business Environments: Using Agent-based Simulation to Understand Dynamic Behaviour - Multimethod Simulation Software Tool AnyLogic

David Buxton, Richard Farr, Bart Maccarthy. MITIP2006, 11-12 September, Budapest.

“This paper describes the application of a simulation developed using the principles of agent-based modelling to understand future aero-engine business environments. In contrast to alternative modelling techniques, an agent-based approach follows bottom-up principles. Each agent runs as an independent simulation interacting with other agents in the system. Agent-based models are comprised of distinct units modelled at a relatively detailed level with particular focus placed on capturing boundary interactions and exchanges. Collective behaviour and interactions create the dynamics of the system [3]. The approach allows interactions to be studied at the micro-level and also large scale system behaviour.
The agent-based model developed here captures business processes, decision rules and exchanges of information and materials. The aim of the work is to understand the implications of the business strategy and business models adopted in an aero-engine value chain over a long project lifecycle. The value chain encompasses original equipment supply, aftermarket services and consumables supply. Each player in the value chain is represented as an agent, allowing detailed capture of individual business processes, logic, attitudes to risk and responses to changes in the market place…”