Logistics Networks: Coping with Nonlinearity and Complexity

Abstract

Nowadays the complexity of logistics is a buzzword spreading in business, media and everyday practice. However, the study of logistics networks from the point of view of complex dynamical systems theory has started only recently. In the past decade, physicists have been more and more interested in interdisciplinary fields such as biophysics, traffic physics, econophysics, or sociophysics. Also, the study of production processes and logistics networks has become attractive, although the title of the book “Factory Physics” suggests that there should be some connection. In fact, it is quite natural to study production and logistics from the point of view of material flows. Therefore, many-particle approaches such as Monte-Carlo simulations and fluid-dynamic models should be applicable to logistics systems. As we will discuss in the following, this is really the case.

Keywords: supply chains, logistics, nonlinear dynamics, managing complexity