Search results for: production logistics

Authors: Pramod Ghadge, Swadesh Srivastava

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Revenue generation of a logistics company depends on how the logistics cost of a shipment is calculated. Logistics cost of a shipment is a function of distance & speed of the shipment travel in a particular network, its volumetric size and dead weight. Logistics billing is based mainly on the consumption of the scarce resource (space or weight carrying capacity of a carrier). Shipment’s size or deadweight is a function of product and packaging weight, dimensions and flexibility. Hence, to arrive at a standard methodology to compute accurate cost to bill the customer, the interplay among above mentioned physical attributes along with their measurement plays a key role. This becomes even more complex for an ecommerce company, like Flipkart, which caters to shipments from both warehouse and marketplace in an unorganized non-standard market like India. In this paper, we will explore various methodologies to define a standard way of billing the non-standard shipments across a wide range of size, shape and deadweight. Those will be, usage of historical volumetric/dead weight data to arrive at a factor which can be used to compute the logistics cost of a shipment, also calculating the real/contour volume of a shipment to address the problem of irregular shipment shapes which cannot be solved by conventional bounding box volume measurements. We will also discuss certain key business practices and operational quality considerations needed to bring standardization and drive appropriate ownership in the ecosystem.

Keywords: contour volume, logistics, real volume, volumetric weight

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Authors: Ana María Rojas Chaparro, Cristian Camilo Sarmiento Chaves

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Given the growing importance of logistics as a discipline for efficient management of materials flow and information, the adoption of tools that permit to create facilities in making decisions based on a global perspective of the system studied has been essential. The article shows how from a concepts-based model is possible to organize and represent in appropriate way the reality, showing accurate and timely information, features that make this kind of models an ideal component to support an information system, recognizing that information as relevant to establish particularities that allow get a better performance about the evaluated sector.

Keywords: system, information, conceptual model, logistics

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Authors: Tsai-Pei Liu, Zhi-Rou Zheng, Tzu-Tzu Wen

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Innovative logistics system simulation teaching is to extract the characteristics of the system through simulation methodology. The system has randomness and interaction problems in the execution time. Therefore, the simulation model can usually deal with more complex logistics process problems, giving students different learning modes. Students have more autonomy in learning time and learning progress. System simulation has become a new educational tool, but it still needs to accept many tests to use it in the teaching field. Although many business management departments in Taiwan have started to promote, this kind of simulation system teaching is still not popular, and the prerequisite for popularization is to be supported by students. This research uses an extension of Integration Unified Theory of Acceptance and Use of Technology (UTAUT2) to explore the acceptance of students in universities of science and technology to use system simulation as a learning tool. At the same time, it is hoped that this innovation can explore the effectiveness of the logistics system simulation after the introduction of teaching. The results indicated the significant influence of performance expectancy, social influence and learning value on students’ intention towards confirmed the influence of facilitating conditions and behavioral intention. The extended UTAUT2 framework helps in understanding students’ perceived value in the innovative logistics system teaching context.

Keywords: UTAUT2, logistics system simulation, learning value, Taiwan

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Authors: Markus Pajones, Theresa Steiner, Matthias Neubauer

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Selecting a logistics location is vital for logistics providers, food retailing and other trading companies since the selection poses an essential factor for economic success. Therefore various location search methods like cost-benefit analysis and others are well known and under usage. The development of a logistics location can be related to considerable negative effects for the eco system such as sealing the surface, wrecking of biodiversity or CO2 and noise emissions generated by freight and commuting traffic. The increasing importance of sustainability demands for taking an informed decision when selecting a logistics location for the future. Sustainability considers economic, ecologic and social aspects which should be equally integrated in the process of location search. Objectives of this paper are to define various methods which support the selection of sustainable logistics locations and to generate knowledge about the suitability, assets and limitations of the methods within the selection process. This paper investigates the role of economical, ecological and social aspects when searching for new logistics locations. Thereby, related work targeted towards location search is analyzed with respect to encoded sustainability aspects. In addition, this research aims to gain knowledge on how to include aspects of sustainability and take an informed decision when searching for a logistics location. As a result, a decomposition of the various location search methods in there components leads to a comparative analysis in form of a matrix. The comparison within a matrix enables a transparent overview about the mentioned assets and limitations of the methods and their suitability for selecting sustainable logistics locations. A further result is to generate knowledge on how to combine the separate methods to a new method for a more efficient selection of logistics locations in the context of sustainability. Future work will especially investigate the above mentioned combination of various location search methods. The objective is to develop an innovative instrument, which supports the search for logistics locations with a focus on a balanced sustainability (economy, ecology, social). Because of an ideal selection of logistics locations, induced traffic should be reduced and a mode shift to rail and public transport should be facilitated.

Keywords: commuting traffic, freight traffic, logistics location search, location search method

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Authors: Pallav Singh, Rajesh Yabaji, Rajesh Dhir, Chanakya Hridaya

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Supply Chain Costs for the Indian Industries have been on an exponential trend due to steep inflation on fundamental cost factors – Fuel, Labour, Rents. In this changing context organizations have been focusing on adopting multiple approaches to keep logistics costs under control to protect the profit margins. The lever of ‘Business to Business (B2B) collaboration’ can be used by organizations to garner higher value. Given the context of Indian Logistics Industry the penetration of B2B Collaboration initiatives have been limited. This paper outlines a structured framework for adoption of B2B collaboration through discussion of a successful initiative between ITC’s Leaf Tobacco Business and a leading Indian Media House. Multiple barriers to such a collaborative process exist which need to be addressed through comprehensive structured approaches. This paper outlines a generic framework approach to B2B collaboration for the Indian Logistics Space, outlining the guidelines for arriving at potential opportunities, identification of collaborators, effective tie-up process, design of operations and sustenance factors. The generic methods outlined can be used in any other industry and also builds a foundation for further research on many topics.

Keywords: business to business collaboration, reverse haul logistics, transportation cost optimization, exports logistics

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Authors: Guo Yan

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Clothing recycling bin is a traditional way to collect textile waste in many areas. In the clothing recycling business, the transportation cost normally takes over 50% of total costs. This case gives a good way to reduce transportation cost by reverse logistics system. In this reverse logistics system, there are offline strategic alliance partners, such as transport firms, convenience stores, laundries, and post office which are integrated onto the mobile APP. Offline strategic alliance partners provide the service of textile waste collection, and transportation by their vacant vehicles return journey from convenience stores, laundries and post offices to sorting centers. The results of the case study provide the strategic alliance with a valuable and light - asset business model by using the logistics of offline memberships. The company in this case just focuses on textile waste sorting, reuse, recycling etc. The research method of this paper is a case study of a clothing recycling company in Chengdu by field research and interview; the analysis is based on the theory of the reverse logistics system.

Keywords: closed-loop recycles system, clothing recycling, end-of-life clothing, sharing economy, strategic alliance, reverse logistics.

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Authors: Faisal Mehmood

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In this globalization era, the supply chain management has acquired strategic importance in diverse business environments. In the current highly competitive business environment, the success of any business considerably depends on the efficiency of the supply chain. Management has now realized that due to the inefficiency of any member of supply chain, the profitability of the business will be affected. This paper proposes an analysis of backward supply chain in the beverages industry of Pakistan. Although reuse of products and materials is a common phenomenon, companies have long ignored this important part of the supply chain, known as backward supply chain or reverse logistics. The beverage industry is among the pioneers of backward supply chain or reverse logistics in Pakistan. The empty glass bottles are returned back from the point of consumption to the warehouse for refilling and reusability purposes. Due to the lack of information on reverse flow of logistics and more attention on the forward distribution, beverages industry in Pakistan is facing high rate of inefficiencies and ineffectiveness. Analysis of backward or reverse logistics practiced in beverages industry is the subject of this study in which framework dictating the current needs of market will be developed.

Keywords: backward supply chain, reverse logistics, refilling, re-usability

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Authors: Simon Komesker, Achim Wagner, Martin Ruskowski

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In times of volatile markets with fluctuating demand and the uncertainty of global supply chains, flexible production systems are the key to an efficient implementation of a desired production program. In this publication, the authors present a holistic information concept taking into account various influencing factors for operating towards the global optimum. Therefore, a strategy for the implementation of multi-level planning for a flexible, reconfigurable production system with an alternative production concept in the automotive industry is developed. The main contribution of this work is a system structure mixing central and decentral planning and control evaluated in a simulation framework. The information system structure in current production systems in the automotive industry is rigidly hierarchically organized in monolithic systems. The production program is created rule-based with the premise of achieving uniform cycle time. This program then provides the information basis for execution in subsystems at the station and process execution level. In today's era of mixed-(car-)model factories, complex conditions and conflicts arise in achieving logistics, quality, and production goals. There is no provision for feedback loops of results from the process execution level (resources) and process supporting (quality and logistics) systems and reconsideration in the planning systems. To enable a robust production flow, the complexity of production system control is artificially reduced by the line structure and results, for example in material-intensive processes (buffers and safety stocks - two container principle also for different variants). The limited degrees of freedom of line production have produced the principle of progress figure control, which results in one-time sequencing, sequential order release, and relatively inflexible capacity control. As a result, modularly structured production systems such as modular production according to known approaches with more degrees of freedom are currently difficult to represent in terms of information technology. The remedy is an information concept that supports cross-system and cross-level information processing for centralized and decentralized decision-making. Through an architecture of hierarchically organized but decoupled subsystems, the paradigm of hybrid control is used, and a holonic manufacturing system is offered, which enables flexible information provisioning and processing support. In this way, the influences from quality, logistics, and production processes can be linked holistically with the advantages of mixed centralized and decentralized planning and control. Modular production systems also require modularly networked information systems with semi-autonomous optimization for a robust production flow. Dynamic prioritization of different key figures between subsystems should lead the production system to an overall optimum. The tasks and goals of quality, logistics, process, resource, and product areas in a cyber-physical production system are designed as an interconnected multi-agent-system. The result is an alternative system structure that executes centralized process planning and decentralized processing. An agent-based manufacturing control is used to enable different flexibility and reconfigurability states and manufacturing strategies in order to find optimal partial solutions of subsystems, that lead to a near global optimum for hybrid planning. This allows a robust near to plan execution with integrated quality control and intralogistics.

Keywords: holonic manufacturing system, modular production system, planning, and control, system structure

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Authors: Marlies Achenbach

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System competencies play a key role to ensure an effective and efficient improvement of production systems. Thus, there can be observed an increasing demand for developing system competencies in industry as well as in engineering education. System competencies consist of the following two main abilities: Evaluating the current state of a production system and developing a target state. The innovative course ‘multi-perspective learning in a real production plant (multi real)’ is developed to create a learning setting that supports the development of these system competencies. Therefore, the setting combines two innovative aspects: First, the Learning takes place in heterogeneous groups formed by students as well as professionals and managers from industry. Second, the learning takes place in a real production plant. This paper presents the innovative didactic concept of ‘multi real’ in detail, which will initially be implemented in October/November 2016 in the industrial engineering, logistics and mechanical master’s program at TU Dortmund University.

Keywords: experiential learning, heterogeneous groups, improving production systems, system competencies

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Authors: Giulio Mangano, Alberto De Marco, Giovanni Zenezini

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The concept of City Logistics (CL) has emerged to improve the impacts of last mile freight distribution in urban areas. In this paper, a System Dynamics (SD) model exploring the dynamics of the diffusion of a ICT platform for CL management across different populations is proposed. For the development of the model two sources have been used. On the one hand, the major diffusion variables and feedback loops are derived from a literature review of existing diffusion models. On the other hand, the parameters are represented by the value propositions delivered by the platform as a response to some of the users’ needs. To extract the most important value propositions the Business Model Canvas approach has been used. Such approach in fact focuses on understanding how a company can create value for her target customers. These variables and parameters are thus translated into a SD diffusion model with three different populations namely municipalities, logistics service providers, and own account carriers. Results show that, the three populations under analysis fully adopt the platform within the simulation time frame, highlighting a strong demand by different stakeholders for CL projects aiming at carrying out more efficient urban logistics operations.

Keywords: city logistics, simulation, system dynamics, business model

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Authors: Ana Julia Acevedo Urquiaga, Jose A. Acevedo Suarez, Ana Julia Urquiaga Rodriguez, Neyfe Sablon Cossio

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Despite the progress made in logistics and supply chains fields, it is unavoidable the development of business models that use efficiently information to facilitate the integrated logistics flows management between partners. Collaborative management is an important tool for materializing the cooperation between companies, as a way to achieve the supply chain efficiency and effectiveness. The first face of this research was a comprehensive analysis of the collaborative planning on the Cuban companies. It is evident that they have difficulties in supply chains planning where production, supplies and replenishment planning are independent tasks, as well as logistics and distribution operations. Large inventories generate serious financial and organizational problems for entities, demanding increasing levels of working capital that cannot be financed. Problems were found in the efficient application of Information and Communication Technology on business management. The general objective of this work is to develop a methodology that allows the deployment of a planning and control system in a coordinated way on the medicine’s logistics system in Cuba. To achieve these objectives, several mechanisms of supply chain coordination, mathematical programming models, and other management techniques were analyzed to meet the requirements of collaborative logistics management in Cuba. One of the findings is the practical and theoretical inadequacies of the studied models to solve the current situation of the Cuban logistics systems management. To contribute to the tactical-operative management of logistics, the Collaborative Logistics Flow Management Model (CLFMM) is proposed as a tool for the balance of cycles, capacities, and inventories, always to meet the final customers’ demands in correspondence with the service level expected by these. The CLFMM has as center the supply chain planning and control system as a unique information system, which acts on the processes network. The development of the model is based on the empirical methods of analysis-synthesis and the study cases. Other finding is the demonstration of the use of a single information system to support the supply chain logistics management, allows determining the deadlines and quantities required in each process. This ensures that medications are always available to patients and there are no faults that put the population's health at risk. The simulation of planning and control with the CLFMM in medicines such as dipyrone and chlordiazepoxide, during 5 months of 2017, permitted to take measures to adjust the logistic flow, eliminate delayed processes and avoid shortages of the medicines studied. As a result, the logistics cycle efficiency can be increased to 91%, the inventory rotation would increase, and this results in a release of financial resources.

Keywords: collaborative management, medicine logistic system, supply chain planning, tactical-operative planning

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Authors: S. N. S. Thein, H. L. Yang, Z. B. Liu

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There are many modes of transport. Among them, maritime transport is a major transportation mode of international trade. In the Republic of the Union of Myanmar (Burma), water transportation served as one of the most important modes of transport for country's exports and imports. Getting the accurate information and data-gathering activity are the most important aspects for any study field. Therefore, in this research, a historical review of the development of ports in Myanmar and how they have changed had been carried out. All the relevant literature and documents have also been reviewed, studied, and organized. The sources of collected data are from reports, journals, internet, as well as from the publications of authorized organizations and international associations. To get better understanding about real situation of maritime transport and logistics in Myanmar; current condition of existing ports, expansion and on-going projects, and future port development plans are described successively. Hence, the main purpose of this study is to build up a comprehensive picture of maritime transport and logistics, in addition to border trade within ASEAN and Myanmar. It will help for academic researchers, decision makers, and stakeholders for national planning as well as for the local and foreign investors to recognize current situation of maritime transport and logistics in Myanmar.

Keywords: ASEAN, border trade, logistics, maritime transport, ports of Myanmar

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Authors: T. Spiegel, J. Siegmann, C. F. Durach

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Challenges resulting from an international and dynamic business environment are increasingly being passed on from manufacturing companies to external service providers. Especially providers of complex, customer-specific industry services have to cope with continuously changing requirements. This is particularly true for contract logistics service providers. They are forced to develop efficient and highly flexible structures and strategies to meet their customer’s needs. One core element they have to focus on is the reorganization of their service development and sales process. Based on an action research approach, this study develops and tests a concept to streamline tender management for contract logistics service providers. The concept of modularized service architecture is deployed in order to derive a practice-oriented approach for the modularization of complex service portfolios and the design of customized quotes. These findings are evaluated regarding their applicability in other service sectors and practical recommendations are given.

Keywords: contract logistics, modularization, service development, tender management

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Authors: Tuğçe Yavaş Akış

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In recent years, due to an increased use of radioactive materials, radioactive sources are constantly being transported via air, road and ocean ways for medical, industrial, research etc. purposes throughout the world. The quantity of radioactive materials transported all around the world varies from negligible quantities in shipments of consumer products to very large quantities in shipments of irradiated nuclear fuel. Radioactive materials have been less attractive for social science researchers in literature. In this study, it is aimed to discover desired flow of radioactive materials from logistics service quality (LSQ) perspective. In doing so, case study approach will be employed by using secondary data collected from one of the world’s leading transportation companies’ customer care system reports. Movement of radioactive cargoes containing IR-192 and logistics process will be analyzed with the help of logistics service quality dimensions. Based on the case study that will be conducted, interaction between dimensions, the importance of each dimension in desired flow, and their relevance with desired flow of radioactive materials will be explained. This study will bring out the desired flow of radioactive materials transportation and be a guide for all other companies, employees and researchers.

Keywords: logistics service quality, LSQ dimension , radioactive material, transportation

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Authors: Alhasan Hakami, Arun Kumar, Sung J. Shim, Yousef Abu Nahleh

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In recent years, many high intensity earthquakes have occurred around the world, such as the 2011 earthquake in Tohoku, Japan. These large-scale disasters caused huge casualties and losses. In addition, inefficient disaster response operations also caused the second wave of casualties and losses, and expanded the damage. Effective disaster management can be used to respond to the chaotic situation, and reduce the damage. However, some inefficient disaster response operations are still used. Therefore, this case study chose the 921 earthquakes for analysing disaster emergency logistics problems and proposed the Soft Systems Methodology (SSM) to solve disaster emergency logistics problems. Moreover, it analyses the effect of human factors on system operation, and suggests a solution to improve the system.

Keywords: soft systems methodology, emergency logistics, earthquakes, Japan, system operation

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Authors: Mehmet Şimşek

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In the rapidly changing market conditions, it is getting harder to survive without adapting new abilities. Technology and globalization have enabled foreign producers to enter into national markets, even local ones. For this reason there is now big competition among production companies for market share. Furthermore, competition has provided customer with broad range of options to choose from. To be able to survive in this environment, companies need to produce at low price and at high quality. The best way to succeed this is the efficient use of supply chain management that has started to get shaped by the needs of customers and the environment.

Keywords: cycle time, logistics, outsourcing, production, supply chain

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Authors: Colette Malyack, Pius Egbelu

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Business-to-Customer (B2C) delivery options have improved to meet increased demand in recent years. The change in end users has forced logistics networks to focus on customer service and sentiment that would have previously been the priority of the company or organization of origin. This has led to increased pressure on logistics companies to extend traditional B2B networks into a B2C solution while accommodating additional costs, roadblocks, and customer sentiment; the result has been the creation of the omnichannel delivery network encompassing a number of traditional and modern methods of package delivery. In this paper the many solutions within the omnichannel delivery network are defined and discussed. It can be seen through this analysis that the omnichannel delivery network can be applied to reduce the complexity of package delivery and provide customers with more options. Applied correctly the result is a reduction in cost to the logistics company over time, even with an initial increase in cost to obtain the technology.

Keywords: network planning, last mile delivery, omnichannel delivery network, omnichannel logistics

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Authors: Jan Busch, Maurice Schmidt, Peter Nyhuis

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The change of conditions for production companies in high-wage countries is characterized by the globalization of competition and the transition of a supplier´s to a buyer´s market. The companies need to face the challenges of reacting flexibly to these changes. Due to the significant and increasing degree of automation, assembly has become the most expensive production process. Regarding the reduction of production cost, assembly consequently offers a considerable rationalizing potential. Therefore, an aerodynamic feeding system has been developed at the Institute of Production Systems and Logistics (IFA), Leibniz Universitaet Hannover. In former research activities, this system has been enabled to adjust itself using genetic algorithm. The longer the genetic algorithm is executed the better is the feeding quality. In this paper, the relation between the system´s setting time and the feeding quality is observed and a function which enables the user to achieve the minimum of the total feeding time is presented.

Keywords: aerodynamic feeding system, batch size, optimisation, setting time

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Authors: Michael Mederle, Heinz Bernhardt

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The Management of machine fleets or autonomous vehicle control will considerably increase efficiency in future agricultural production. Especially entire process chains, e.g. harvesting complexes with several interacting combine harvesters, grain carts, and removal trucks, provide lots of optimization potential. Organization and pre-planning ensure to get these efficiency reserves accessible. One way to achieve this is to optimize infield path planning. Particularly autonomous machinery requires precise specifications about infield logistics to be navigated effectively and process optimized in the fields individually or in machine complexes. In the past, a lot of theoretical optimization has been done regarding infield logistics, mainly based on field geometry. However, there are reasons why farmers often do not apply the infield strategy suggested by mathematical route planning tools. To make the computational optimization more useful for farmers this study focuses on these influencing factors by expert interviews. As a result practice-oriented navigation not only to the field but also within the field will be possible. The survey study is intended to cover the entire range of German agriculture. Rural mixed farms with simple technology equipment are considered as well as large agricultural cooperatives which farm thousands of hectares using track guidance and various other electronic assistance systems. First results show that farm managers using guidance systems increasingly attune their infield-logistics on direction giving obstacles such as power lines. In consequence, they can avoid inefficient boom flippings while doing plant protection with the sprayer. Livestock farmers rather focus on the application of organic manure with its specific requirements concerning road conditions, landscape terrain or field access points. Cultivation of sugar beets makes great demands on infield patterns because of its particularities such as the row crop system or high logistics demands. Furthermore, several machines working in the same field simultaneously influence each other, regardless whether or not they are of the equal type. Specific infield strategies always are based on interactions of several different influences and decision criteria. Single working steps like tillage, seeding, plant protection or harvest mostly cannot be considered each individually. The entire production process has to be taken into consideration to detect the right infield logistics. One long-term objective of this examination is to integrate the obtained influences on infield strategies as decision criteria into an infield navigation tool. In this way, path planning will become more practical for farmers which is a basic requirement for automatic vehicle control and increasing process efficiency.

Keywords: autonomous vehicle control, infield logistics, path planning, process optimizing

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Authors: Yousef Abu Nahleh, Arun Kumar, Fugen Daver, Reham Al-Hindawi

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Despite the availability of natural disaster related time series data for last 110 years, there is no forecasting tool available to humanitarian relief organizations to determine forecasts for emergency logistics planning. This study develops a forecasting tool based on identifying probability of disaster for each country in the world by using decision tree modeling. Further, the determination of aggregate forecasts leads to efficient pre-disaster planning. Based on the research findings, the relief agencies can optimize the various resources allocation in emergency logistics planning.

Keywords: decision tree modeling, forecasting, humanitarian relief, emergency supply chain

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Authors: Armen Grigoryan, Milena Arakelyan

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The idea of smart logistics is still quite a complicated one. It can be used to market products to a large number of customers or to acquire raw materials of the highest quality at the lowest cost in geographically dispersed areas. The use of smart contracts in logistics and supply chain management has the potential to revolutionize the way that goods are tracked, transported, and managed. Smart contracts are simply computer programs written in one of the blockchain programming languages (Solidity, Rust, Vyper), which are capable of self-execution once the predetermined conditions are met. They can be used to automate and streamline many of the traditional manual processes that are currently used in logistics and supply chain management, including the tracking and movement of goods, the management of inventory, and the facilitation of payments and settlements between different parties in the supply chain. Currently, logistics is a core area for companies which is concerned with transporting products between parties. Still, the problem of this sector is that its scale may lead to detainments and defaults in the delivery of goods, as well as other issues. Moreover, large distributors require a large number of workers to meet all the needs of their stores. All this may contribute to big detainments in order processing and increases the potentiality of losing orders. In an attempt to break this problem, companies have automated all their procedures, contributing to a significant augmentation in the number of businesses and distributors in the logistics sector. Hence, blockchain technology and smart contracted legal agreements seem to be suitable concepts to redesign and optimize collaborative business processes and supply chains. The main purpose of this paper is to examine the scope of blockchain technology and smart contracts in the field of logistics and supply chain management. This study discusses the research question of how and to which extent smart contracts and blockchain technology can facilitate and improve the implementation of collaborative business structures for sustainable entrepreneurial activities in smart supply chains. The intention is to provide a comprehensive overview of the existing research on the use of smart contracts in logistics and supply chain management and to identify any gaps or limitations in the current knowledge on this topic. This review aims to provide a summary and evaluation of the key findings and themes that emerge from the research, as well as to suggest potential directions for future research on the use of smart contracts in logistics and supply chain management.

Keywords: smart contracts, smart logistics, smart supply chain management, blockchain and smart contracts in logistics, smart contracts for controlling supply chain management

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Authors: Joanna Kochanska, Dagmara Gornicka, Anna Burduk

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The article examines the process of implementing a new assembly line in a manufacturing enterprise of the household appliances industry area. At the initial stages of the project, a decision was made that one of its foundations should be the concept of lean management. Because of that, eliminating as many errors as possible in the first phases of its functioning was emphasized. During the start-up of the line, there were identified and documented all production losses (from serious machine failures, through any unplanned downtime, to micro-stops and quality defects). During 6 weeks (line start-up period), all errors resulting from problems in various areas were analyzed. These areas were, among the others, production, logistics, quality, and organization. The aim of the work was to analyze the occurrence of production failures during the initial phase of starting up the line and to propose a method for determining their critical level during its full functionality. There was examined the repeatability of the production losses in various areas and at different levels at such an early stage of implementation, by using the methods of statistical process control. Based on the Pareto analysis, there were identified the weakest points in order to focus improvement actions on them. The next step was to examine the effectiveness of the actions undertaken to reduce the level of recorded losses. Based on the obtained results, there was proposed a method for determining the critical failures level in the studied areas. The developed coefficient can be used as an alarm in case of imbalance of the production, which is caused by the increased failures level in production and production support processes in the period of the standardized functioning of the line.

Keywords: production failures, level of production losses, new production line implementation, assembly line, statistical process control

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Authors: Giuseppe Timperio, Robert de Souza

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Logistics operations in the context of disaster response are characterized by a high degree of complexity due to the combined effect of a large number of stakeholders involved, time pressure, uncertainties at various levels, massive deployment of goods and personnel, and gigantic financial flow to be managed. It also involves several autonomous parties such as government agencies, militaries, NGOs, UN agencies, private sector to name few, to have a highly collaborative approach especially in the critical phase of the immediate response. This is particularly true in the context of L3 emergencies that are the most severe, large-scale humanitarian crises. Decision-making processes in disaster management are thus extremely difficult due to the presence of multiple decision-makers involved, and the complexity of the tasks being tackled. Hence, in this paper, we look at applying ICT based solutions to enable a speedy and effective decision making in the golden window of humanitarian operations. A high-level view of ICT based solutions in the context of logistics operations for humanitarian response in Southeast Asia is presented, and their viability in a real-life case about logistics network design is explored.

Keywords: decision support, disaster preparedness, humanitarian logistics, network design

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Authors: Egemen Sert, Leila Hedayatifar, Rachel A. Rigg, Amir Akhavan, Olha Buchel, Dominic Elias Saadi, Aabir Abubaker Kar, Alfredo J. Morales, Yaneer Bar-Yam

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The complexity of providing timely and cost-effective distribution of finished goods from industrial facilities to customers makes effective operational coordination difficult, yet effectiveness is crucial for maintaining customer service levels and sustaining a business. Logistics planning becomes increasingly complex with growing numbers of customers, varied geographical locations, the uncertainty of future orders, and sometimes extreme competitive pressure to reduce inventory costs. Linear optimization methods become cumbersome or intractable due to a large number of variables and nonlinear dependencies involved. Here we develop a complex systems approach to optimizing logistics networks based upon dimensional reduction methods and apply our approach to a case study of a manufacturing company. In order to characterize the complexity in customer behavior, we define a “customer space” in which individual customer behavior is described by only the two most relevant dimensions: the distance to production facilities over current transportation routes and the customer's demand frequency. These dimensions provide essential insight into the domain of effective strategies for customers; direct and indirect strategies. In the direct strategy, goods are sent to the customer directly from a production facility using box or bulk trucks. In the indirect strategy, in advance of an order by the customer, goods are shipped to an external warehouse near a customer using trains and then "last-mile" shipped by trucks when orders are placed. Each strategy applies to an area of the customer space with an indeterminate boundary between them. Specific company policies determine the location of the boundary generally. We then identify the optimal delivery strategy for each customer by constructing a detailed model of costs of transportation and temporary storage in a set of specified external warehouses. Customer spaces help give an aggregate view of customer behaviors and characteristics. They allow policymakers to compare customers and develop strategies based on the aggregate behavior of the system as a whole. In addition to optimization over existing facilities, using customer logistics and the k-means algorithm, we propose additional warehouse locations. We apply these methods to a medium-sized American manufacturing company with a particular logistics network, consisting of multiple production facilities, external warehouses, and customers along with three types of shipment methods (box truck, bulk truck and train). For the case study, our method forecasts 10.5% savings on yearly transportation costs and an additional 4.6% savings with three new warehouses.

Keywords: logistics network optimization, direct and indirect strategies, K-means algorithm, dimensional reduction

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Authors: Arun Kumar, Neelesh Haulder

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This paper identifies and resolves some key issues relating to a specific aspect within the supply chain logistics of the public health care industry in the Republic of Mauritius. The analysis and the proposed solution are performed using soft systems methodology (SSM). Through the application of this relevant systematic approach at problem solving, the aim is to obtain an in-depth analysis of the problem, incorporating every possible world view of the problem and consequently to obtain a well explored solution aimed at implementing relevant changes within the current supply chain logistics of the health care industry, with the purpose of tackling the key identified issues.

Keywords: soft systems methodology, CATWOE, healthcare, logistics

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Authors: Mario Winkelhaus, Franz Vallée

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Many companies see horizontal cooperation as a promising possibility to increase their efficiency in outbound logistics. The selection of suitable partners has particular importance in the formation of horizontal cooperation. Up until now, literature mainly focused on general applicable methods for the identification of cooperation partners without a closer examination of the specific area where the cooperation takes place. Thus, specific criteria as a basis for the partner selection in the field of logistics cooperation are missing. To close this scientific gap, an explorative research approach is used to answer the open question of the article. To collect the needed criteria, a qualitative experiment with 20 participants from 16 companies was done. Within this workshop, general criteria, as well as sector-specific requirements, have been identified which were integrated in a partner selection model.

Keywords: horizontal cooperation, logistics cooperation partnering criteria, partner selection

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Authors: Ibrahim Halil Korkmaz, Eren Özceylan, Cihan Çetinkaya

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Logistics function has great potential for increasing sustainable competitive advantage, profitability, productivity, customer satisfaction and decreasing costs in all sectors. The performance of logistics sector, which has such great influence on the overall performance of the economy, attracts more attention of both researchers and sector representatives day by day. The purpose of this study is to determine the effects of research and development expenditures which spent by enterprises operating in the transportation and storage sectors on Turkey’s logistic performance index (LPI). To do so, research and development investment expenditure among the years 2009-2015 of Turkish transportation and storage firms data from the Turkish Statistical Institute and Turkeys country points in the World Bank logistics performance index in the same years data were examined. As the result of the parametric evaluation, it is seen that the research and development expenditures made have a positive effect on the logistic performance of Turkey.

Keywords: logistics performance index, R&D investments, transportation, storage, Turkey

Procedia PDF Downloads 297

Authors: Safa Gharbi, Hayfa Zgaya, Nesrine Zoghlami, Slim Hammadi, Cyril De Barbarin, Laurent Vinatier, Christiane Coupier

Abstract:

Increasing productivity and quality of service, improving the working comfort and ensuring the efficiency of all processes are important challenges for every warehouse. The order picking is recognized to be the most important and costly activity of all the process in warehouses. This paper presents a new approach using Augmented Reality (AR) in the field of logistics. It aims to create a Head-Up Display (HUD) interface with a Warehouse Management System (WMS), using AR glasses. Integrating AR technology allows the optimization of order picking by reducing time of picking process, increasing the efficiency and delivering quickly. The picker will be able to access immediately to all the information needed for his tasks. All the information is displayed when needed in the field of vision (FOV) of the operator, without any action requested from him. These research works are part of the industrial project RASL (Réalité Augmentée au Service de la Logistique) which gathers two major partners: the LAGIS (Laboratory of Automatics, Computer Engineering and Signal Processing in Lille-France) and Genrix Group, European leader in warehouses logistics, who provided his software for implementation, and his logistics expertise.

Keywords: Augmented Reality (AR), logistics and optimization, Warehouse Management System (WMS), Head-Up Display (HUD)

Procedia PDF Downloads 455

Authors: Stavros T. Ponis, George D. Plakas-Koumadorakis, Sotiris P. Gayialis

Abstract:

Augmented Reality (AR) can be defined as a technology, which takes the capabilities of computer-generated display, sound, text and effects to enhance the user's real-world experience by overlaying virtual objects into the real world. By doing that, AR is capable of providing a vast array of work support tools, which can significantly increase employee productivity, enhance existing job training programs by making them more realistic and in some cases introduce completely new forms of work and task executions. One of the most promising AR industrial applications, as literature shows, is the use of Head Worn, monocular or binocular Displays (HWD) to support logistics and production operations, such as order picking, part assembly and maintenance. This paper presents the initial results of an ongoing research project for the introduction of a dedicated AR-HWD solution to the picking process of a Distribution Center (DC) in Greece operated by a large Telecommunication Service Provider (TSP). In that context, the proposed research aims to determine whether gamification elements should be integrated in the functional requirements of the AR solution, such as providing points for reaching objectives and creating leaderboards and awards (e.g. badges) for general achievements. Up to now, there is a an ambiguity on the impact of gamification in logistics operations since gamification literature mostly focuses on non-industrial organizational contexts such as education and customer/citizen facing applications, such as tourism and health. To the contrary, the gamification efforts described in this study focus in one of the most labor- intensive and workflow dependent logistics processes, i.e. Customer Order Picking (COP). Although introducing AR in COP, undoubtedly, creates significant opportunities for workload reduction and increased process performance the added value of gamification is far from certain. This paper aims to provide insights on the suitability and usefulness of AR-enhanced gamification in the hard and very demanding environment of a logistics center. In doing so, it will utilize a review of the current state-of-the art regarding gamification of production and logistics processes coupled with the results of questionnaire guided interviews with industry experts, i.e. logisticians, warehouse workers (pickers) and AR software developers. The findings of the proposed research aim to contribute towards a better understanding of AR-enhanced gamification, the organizational change it entails and the consequences it potentially has for all implicated entities in the often highly standardized and structured work required in the logistics setting. The interpretation of these findings will support the decision of logisticians regarding the introduction of gamification in their logistics processes by providing them useful insights and guidelines originating from a real life case study of a large DC operating more than 300 retail outlets in Greece.

Keywords: augmented reality, technology acceptance, warehouse management, vision picking, new forms of work, gamification

Procedia PDF Downloads 116

Authors: Athirat Intajorn

Abstract:

According to the ASEAN free trade areas (AFTA), Thailand has applied the AFTA agreement for reducing tariffs and reflecting changes in business processes. The reflection of changes in agribusiness processes, in particular, has accumulated as production costs for producers. Palm Oil industry has become an important industry to Thailand economic. Thailand currently ranks the 3rd in the world for Crude Palm Oil CPO. Therefore, the scope of this paper presents a research framework to investigate the supply chain management practices in Thailand palm oil industry. This research is limit to literature review. And the proposed framework identifies the criteria of supply chain management for Thailand palm oil industry in order for linkage among entities within logistics management involving plantation, mill, collection port, refinery and cookie from the data utilization. The Supply Chain Management Practices in Thailand Palm Oil Industry framework has a somewhat different view due to the high complexity of agribusiness logistics management.

Keywords: supply chain management, practice, palm oil industry, Thailand palm oil industry

Procedia PDF Downloads 277