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A Formal Modeling Approach for Supply Chain Event Management
A Formal Modeling Approach for Supply Chain Event Management
Emily (Rong) Liu and Akhil Kumar Wil van der Aalst
Smeal College of Business Faculty of Technology Management
Penn State University Eindhoven Technical University
University Park, PA 16802, USA Eindhoven, Netherlands
{rull110,akhilkumar}@psu.edu w.m.p.v.d.aalst@tm.tue.nl
Abstract: As supply chains become more dynamic it is important to be able to model them formally as
business processes. In particular, there is a need for a sense and respond capability to react to events in a
real-time manner. In this paper, we propose time Petri nets as a formalism for doing so. Hence, we
describe seven basic patterns that are used to capture modeling concepts that arise commonly in supply
chains. Next, we show how to combine these patterns to build a complete Petri net and analyze it using
reachability analysis, dependency graphs and simulation.
Keywords: Supply Chain Event Management, Petri nets, time Petri nets, colored Petri nets, event
causality, dependency graph, reachability analysis.
1. Introduction
The pressures of global competition and the need for extensive inter-organizational collaboration are
forcing companies to streamline their supply chains and make them agile, flexible and responsive.
Consequently, a supply chain must be able to handle large numbers of events, both expected and
unexpected. The unexpected events, also called exceptions, typically arise because there is usually a gap
between supply chain planning and execution [4]. Supply chain planning sets a target that can be achieved
based on a given set of constraints at a given time. In a dynamic supply chain environment, the constraints
are always changing, so exceptions or deviations from plans occur almost regularly. Examples of
exceptions are inaccurate forecast, product out-of-stock, shipment delayed etc., and they are costly.
Moreover, events tend to propagate in collaborative supply chains across partne
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