Resource Management and Allocation in Complex Systems
Examples of complex systems include electricity markets, transport networks, communication networks, supply chains, multi-channel marketing campaigns, etc. In these systems, there is often a need to manage and allocate resources (usually scarce) required by the system, or the costs/benefits it generates, among the different entities (or the agents controlling them) that make up the system. The techniques offered enable this management and allocation to be carried out efficiently while respecting principles of fairness, equity and reasonableness.
TECHNOLOGY DESCRIPTION
A complex system is any system composed of different entities that are interconnected and in which multiple agents may control or manage one or more of these entities. As mentioned above, examples include electricity markets, transport networks, communication networks, supply chains, multi-channel marketing campaigns, pollutant or greenhouse gas emissions, etc.
The knowledge offered involves the use of mathematical, statistical or computational models to analyse these and other problems involving the distribution or allocation of a good (resource, cost, relevance, impact, etc.) from an analytical and rational intelligence perspective. This makes it possible to obtain efficient and optimal results based on principles of fairness, equity and reasonableness. This is relevant because it ensures that the proposed solution is unbiased and therefore suitable for decision-making, particularly where multiple agents are involved and it is necessary for all of them to accept the allocation in order to ensure stability within the system.
TECHNOLOGY APPLICATIONS
Applications of this offer include, among others:
- Distribution or allocation of costs/benefits in logistics problems.
- Management and allocation of scarce resources.
- Attribution of relevance or impact in social media marketing campaigns.
- Strategy design in competitive markets.
- Management and allocation of natural resources.
- Management and allocation of pollutant emissions/discharges.
- Attribution or allocation of the impact of pollutant emissions across supply chains.
ADVANTAGES AND INNOVATIVE ASPECTS
Approaching allocation problems from the perspective of mathematical, statistical or computational modelling provides greater control over the parameters that define the system, as well as the possibility of introducing “what if…” questions that help to better understand the implications of each of the solutions that can be implemented. These methods have been put into practice through participation in projects, with the most relevant applications being protected by patents: in the irrigation system, a limited water flow is managed in rainfed agricultural land in order to maximise land productivity and make efficient use of a scarce resource such as water, while minimising waste.
DEVELOPMENT STAGE
The UMH team has the underlying concepts, algorithms and solutions, some of which are already patented. The technology is ready to be modelled and applied to any specific allocation problem presented by a company or institution.
APPLICATION SECTORS
- Electricity and Energy Market Operators.
- High-performance Marketing and Advertising Agencies.
- Infrastructure and Transport Network Operators.
- Public Administrations (Natural Resource and Environmental Management).
- Global Supply Chains.
PRINCIPAL INVESTIGATOR
Joaquín Sánchez Soriano – Centre for Operations Research