J. Filipe and J. Cordeiro (Eds.): ICEIS 2009, LNBIP 24, pp. 363–375, 2009.
© Springer-Verlag Berlin Heidelberg 2009
A Service Composition Framework for Decision Making
under Uncertainty
Malak Al-Nory
1
, Alexander Brodsky
1,2
, and Hadon Nash
3
1
George Mason University, Virginia, U.S.A.
2
Adaptive Decisions, Inc., Maryland, U.S.A.
3
Google Inc., California, U.S.A.
{malnory,brodsky}@gmu.edu, hadonn@gmail.com
Abstract. Proposed and developed is a service composition framework for
decision-making under uncertainty, which is applicable to stochastic optimiza-
tion of supply chains. Also developed is a library of modeling components
which include Scenario, Random Environment, and Stochastic Service. Service
models are classes in the Java programming language extended with decision
variables, assertions, and business objective constructs. The constructor of a
stochastic service formulates a recourse stochastic program and finds the
optimal instantiation of real values into the service initial and corrective
decision variables leading to the optimal business objective. The optimization is
not done by repeated simulation runs, but rather by automatic compilation of
the simulation model in Java into a mathematical programming model in AMPL
and solving it using an external solver.
Keywords: Modelling for stochastic programming, Object-oriented simulation,
Supply chain optimization, Decision Support Systems.
1 Introduction
Decision support information systems and frameworks often employ simulation
and/or optimization techniques to help decision makers to analyze complex problems
and establish actionable recommendations. For example, simulation and optimization
have been widely used to minimize costs or maximize profitability in diverse
enterprises. Mathematical Programming (MP) and Linear programming (LP) in
particular, have been commonly used to model wide range of supply chain
optimization problems, such as production and inventory planning, blending products,
and network routing. MP tools require constructing a mathematical programming
model with decision variables, constraints, and an objective function, possibly using a
modelling language such as AMPL [1] or GAMS [2]. Such models can be solved
efficiently using existing MP solvers with well-established optimization algorithms,
e.g., for Mixed Integer Linear Programming (MILP). Deterministic LP models require
complete information and can not solve problems in situations where some data or
parameters used in the objective function or the constraints is not available at the time
of solving the problem. However, most of supply chain real-world problems, such as