Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 77

Search results for: warehouse

77 Optimal Utilization of Space in a Warehouse: A Case Study

Authors: Arun Kumar R. K. Gothra, Hasan Alhakamy

Abstract:

With increasing expectations and demands for warehousing and distribution, Warehouse Solution Incorporated in Victoria has been looking at ways to improve on its business processes to maintain the competitive edge. To maintain the provision of high quality service standards at competitive and affordable prices, improvements in the logistics management are necessary. One such avenue is to make efficient use of space available in the warehouse. This paper is based on a study of the collaboration of Warehouse Solution Inc with Dandenong Distribution Centre (DDC) to solve congestion problem and enhance efficiency of the whole warehouse activities.

Keywords: space optimization, optimal utilization, warehouse, DDC

Procedia PDF Downloads 471
76 A Mathematical Optimization Model for Locating and Fortifying Capacitated Warehouses under Risk of Failure

Authors: Tareq Oshan

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Facility location and size decisions are important to any company because they affect profitability and success. However, warehouses are exposed to various risks of failure that affect their activity. This paper presents a mixed-integer non-linear mathematical model that can be used to determine optimal warehouse locations and sizes, which warehouses to fortify, and which branches should be assigned to specific warehouses when there is a risk of warehouse failure. Every branch is assigned to a fortified primary warehouse or a nonfortified primary warehouse and a fortified backup warehouse. The standard method and an introduced method, based on the average probabilities, for linearizing this mathematical model were used. A Canadian case study was used to demonstrate the developed mathematical model, followed by some sensitivity analysis.

Keywords: supply chain network design, fortified warehouse, mixed-integer mathematical model, warehouse failure risk

Procedia PDF Downloads 87
75 Development of Web Application for Warehouse Management System: A Case Study of Ceramics Factory

Authors: Thanaphat Suwanaklang, Supaporn Suwannarongsri

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Presently, there are many industries in Thailand producing various products for both domestic distribution and export to foreign countries. Warehouse is one of the most important areas of business needing to store their products. Such businesses need to have a suitable warehouse management system for reducing the storage time and using the space as much as possible. This paper proposes the development of a web application for a warehouse management system. One of the ceramics factories in Thailand is conducted as a case study. By applying the ABC analysis, fixed location, commodity system, ECRS, and 7-waste theories and principles, the web application for the warehouse management system of the selected ceramics factory is developed to design the optimal storage area for groups of products and design the optimal routes of forklifts. From experimental results, it was found that the warehouse management system developed via the web application can reduce the travel distance of forklifts and the time of searching for storage area by 100% once compared with the conventional method. In addition, the entire storage area can be on-line and real-time monitored.

Keywords: warehouse management system, warehouse design method, logistics system, web application

Procedia PDF Downloads 34
74 A New Complex Method for Integrated Warehouse Design in Aspect of Dynamic and Static Capacity

Authors: Tamas Hartvanyi, Zoltan Andras Nagy, Miklos Szabo

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The dynamic and static capacity are two opposing aspect of warehouse design. Static capacity optimization aims to maximize the space-usage for goods storing, while dynamic capacity needs more free place to handling them. They are opposing by the building structure and the area utilization. According to Pareto principle: the 80% of the goods are the 20% of the variety. From the origin of this statement, it worth to store the big amount of same products by fulfill the space with minimal corridors, meanwhile the rest 20% of goods have the 80% variety of the whole range, so there is more important to be fast-reachable instead of the space utilizing, what makes the space fulfillment numbers worse. The warehouse design decisions made in present practice by intuitive and empiric impressions, the planning method is formed to one selected technology, making this way the structure of the warehouse homogeny. Of course the result can’t be optimal for the inhomogeneous demands. A new innovative model based on our research will be introduced in this paper to describe the technic capacities, what makes possible to define optimal cluster of technology. It is able to optimize the space fulfillment and the dynamic operation together with this cluster application.

Keywords: warehouse, warehouse capacity, warehouse design method, warehouse optimization

Procedia PDF Downloads 49
73 Forklift Allocation in Warehouse Operations with Restricted Halls

Authors: Mauricio Becerra Fernández, Olga Rosana Romero Quiroga, Elsa Cristina González La Rotta

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The logistics facilities design and construction is one of the strategic decisions that critically affects the performance of the company, from the economic perspective and relationship with customers. The case study company is the Colombian logistic sector leader, with over 60 years of experience, with sales of about one hundred twenty million dollars at the end of 2014. The preliminary design for the warehouse layout and operation includes a customer that provides approximately 17% of the profits of the company, considering the possibility of moving two forklifts in the warehouse halls. Some changes were not consider in previous stages of design, operations required forklift with different characteristics, whose size, do not allow the circulation of more than a forklift at a time. Therefore, it is necessary to assess the impact of this restriction on the warehouse operation, so decision makers implement actions to achieve efficient operation. The problem is addressed by recognizing logistics processes, which develop in a warehouse, collection of processes information behavior, the simulation of the current situation using ProModel software, model validation, making adjustments required, experiments design, conclusions and recommendations for the company.

Keywords: design, discrete events simulation, forklift allocation, logistics facilities, warehouse

Procedia PDF Downloads 189
72 Application the Queuing Theory in the Warehouse Optimization

Authors: Jaroslav Masek, Juraj Camaj, Eva Nedeliakova

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The aim of optimization of store management is not only designing the situation of store management itself including its equipment, technology and operation. In optimization of store management we need to consider also synchronizing of technological, transport, store and service operations throughout the whole process of logistic chain in such a way that a natural flow of material from provider to consumer will be achieved the shortest possible way, in the shortest possible time in requested quality and quantity and with minimum costs. The paper deals with the application of the queuing theory for optimization of warehouse processes. The first part refers to common information about the problematic of warehousing and using mathematical methods for logistics chains optimization. The second part refers to preparing a model of a warehouse within queuing theory. The conclusion of the paper includes two examples of using queuing theory in praxis.

Keywords: queuing theory, logistics system, mathematical methods, warehouse optimization

Procedia PDF Downloads 494
71 Order Fulfilment Strategy in E-Commerce Warehouse Based on Simulation: Business Customers Case

Authors: Aurelija Burinskiene

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This paper presents the study for an e-commerce warehouse. The study is aiming to improve order fulfillment activity by identifying the strategy presenting the best performance. A simulation model was proposed to reach the target of this research. This model enables various scenario tests in an e-commerce warehouse, allowing them to find out for the best order fulfillment strategy. By using simulation, model authors investigated customers’ orders representing on-line purchases for one month. Experiments were designed to evaluate various order picking methods applicable to the fulfillment of customers’ orders. The research uses cost components analysis and helps to identify the best possible order picking method improving the overall performance of e-commerce warehouse and fulfillment service to the customers. The results presented show that the application of order batching strategy is the most applicable because it brings distance savings of around 6.7 percentage. This result could be improved by taking an assortment clustering action until 8.34 percentage. So, the recommendations were given to apply the method for future e-commerce warehouse operations.

Keywords: e-commerce, order, fulfilment, strategy, simulation

Procedia PDF Downloads 28
70 Two-Warehouse Inventory Model for Deteriorating Items with Inventory-Level-Dependent Demand under Two Dispatching Policies

Authors: Lei Zhao, Zhe Yuan, Wenyue Kuang

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This paper studies two-warehouse inventory models for a deteriorating item considering that the demand is influenced by inventory levels. The problem mainly focuses on the optimal order policy and the optimal order cycle with inventory-level-dependent demand in two-warehouse system for retailers. It considers the different deterioration rates and the inventory holding costs in owned warehouse (OW) and rented warehouse (RW), and the conditions of transportation cost, allowed shortage and partial backlogging. Two inventory models are formulated: last-in first-out (LIFO) model and first-in-first-out (FIFO) model based on the policy choices of LIFO and FIFO, and a comparative analysis of LIFO model and FIFO model is made. The study finds that the FIFO policy is more in line with realistic operating conditions. Especially when the inventory holding cost of OW is high, and there is no difference or big difference between deterioration rates of OW and RW, the FIFO policy has better applicability. Meanwhile, this paper considers the differences between the effects of warehouse and shelf inventory levels on demand, and then builds retailers’ inventory decision model and studies the factors of the optimal order quantity, the optimal order cycle and the average inventory cost per unit time. To minimize the average total cost, the optimal dispatching policies are provided for retailers’ decisions.

Keywords: FIFO model, inventory-level-dependent, LIFO model, two-warehouse inventory

Procedia PDF Downloads 175
69 Development of Internet of Things (IoT) with Mobile Voice Picking and Cargo Tracing Systems in Warehouse Operations of Third-Party Logistics

Authors: Eugene Y. C. Wong

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The increased market competition, customer expectation, and warehouse operating cost in third-party logistics have motivated the continuous exploration in improving operation efficiency in warehouse logistics. Cargo tracing in ordering picking process consumes excessive time for warehouse operators when handling enormous quantities of goods flowing through the warehouse each day. Internet of Things (IoT) with mobile cargo tracing apps and database management systems are developed this research to facilitate and reduce the cargo tracing time in order picking process of a third-party logistics firm. An operation review is carried out in the firm with opportunities for improvement being identified, including inaccurate inventory record in warehouse management system, excessive tracing time on stored products, and product misdelivery. The facility layout has been improved by modifying the designated locations of various types of products. The relationship among the pick and pack processing time, cargo tracing time, delivery accuracy, inventory turnover, and inventory count operation time in the warehouse are evaluated. The correlation of the factors affecting the overall cycle time is analysed. A mobile app is developed with the use of MIT App Inventor and the Access management database to facilitate cargo tracking anytime anywhere. The information flow framework from warehouse database system to cloud computing document-sharing, and further to the mobile app device is developed. The improved performance on cargo tracing in the order processing cycle time of warehouse operators have been collected and evaluated. The developed mobile voice picking and tracking systems brings significant benefit to the third-party logistics firm, including eliminating unnecessary cargo tracing time in order picking process and reducing warehouse operators overtime cost. The mobile tracking device is further planned to enhance the picking time and cycle count of warehouse operators with voice picking system in the developed mobile apps as future development.

Keywords: warehouse, order picking process, cargo tracing, mobile app, third-party logistics

Procedia PDF Downloads 289
68 Business Intelligence for Profiling of Telecommunication Customer

Authors: Rokhmatul Insani, Hira Laksmiwati Soemitro

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Business Intelligence is a methodology that exploits the data to produce information and knowledge systematically, business intelligence can support the decision-making process. Some methods in business intelligence are data warehouse and data mining. A data warehouse can store historical data from transactional data. For data modelling in data warehouse, we apply dimensional modelling by Kimball. While data mining is used to extracting patterns from the data and get insight from the data. Data mining has many techniques, one of which is segmentation. For profiling of telecommunication customer, we use customer segmentation according to customer’s usage of services, customer invoice and customer payment. Customers can be grouped according to their characteristics and can be identified the profitable customers. We apply K-Means Clustering Algorithm for segmentation. The input variable for that algorithm we use RFM (Recency, Frequency and Monetary) model. All process in data mining, we use tools IBM SPSS modeller.

Keywords: business intelligence, customer segmentation, data warehouse, data mining

Procedia PDF Downloads 297
67 Recent Advances in Data Warehouse

Authors: Fahad Hanash Alzahrani

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This paper describes some recent advances in a quickly developing area of data storing and processing based on Data Warehouses and Data Mining techniques, which are associated with software, hardware, data mining algorithms and visualisation techniques having common features for any specific problems and tasks of their implementation.

Keywords: data warehouse, data mining, knowledge discovery in databases, on-line analytical processing

Procedia PDF Downloads 280
66 KPI and Tool for the Evaluation of Competency in Warehouse Management for Furniture Business

Authors: Kritchakhris Na-Wattanaprasert

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The objective of this research is to design and develop a prototype of a key performance indicator system this is suitable for warehouse management in a case study and use requirement. In this study, we design a prototype of key performance indicator system (KPI) for warehouse case study of furniture business by methodology in step of identify scope of the research and study related papers, gather necessary data and users requirement, develop key performance indicator base on balance scorecard, design pro and database for key performance indicator, coding the program and set relationship of database and finally testing and debugging each module. This study use Balance Scorecard (BSC) for selecting and grouping key performance indicator. The system developed by using Microsoft SQL Server 2010 is used to create the system database. In regard to visual-programming language, Microsoft Visual C# 2010 is chosen as the graphic user interface development tool. This system consists of six main menus: menu login, menu main data, menu financial perspective, menu customer perspective, menu internal, and menu learning and growth perspective. Each menu consists of key performance indicator form. Each form contains a data import section, a data input section, a data searches – edit section, and a report section. The system generates outputs in 5 main reports, the KPI detail reports, KPI summary report, KPI graph report, benchmarking summary report and benchmarking graph report. The user will select the condition of the report and period time. As the system has been developed and tested, discovers that it is one of the ways to judging the extent to warehouse objectives had been achieved. Moreover, it encourages the warehouse functional proceed with more efficiency. In order to be useful propose for other industries, can adjust this system appropriately. To increase the usefulness of the key performance indicator system, the recommendations for further development are as follows: -The warehouse should review the target value and set the better suitable target periodically under the situation fluctuated in the future. -The warehouse should review the key performance indicators and set the better suitable key performance indicators periodically under the situation fluctuated in the future for increasing competitiveness and take advantage of new opportunities.

Keywords: key performance indicator, warehouse management, warehouse operation, logistics management

Procedia PDF Downloads 337
65 Proposition of an Intelligent System Based on the Augmented Reality for Warehouse Logistics

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

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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 378
64 An Experimental Study on the Optimum Installation of Fire Detector for Early Stage Fire Detecting in Rack-Type Warehouses

Authors: Ki Ok Choi, Sung Ho Hong, Dong Suck Kim, Don Mook Choi

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Rack type warehouses are different from general buildings in the kinds, amount, and arrangement of stored goods, so the fire risk of rack type warehouses is different from those buildings. The fire pattern of rack type warehouses is different in combustion characteristic and storing condition of stored goods. The initial fire burning rate is different in the surface condition of materials, but the running time of fire is closely related with the kinds of stored materials and stored conditions. The stored goods of the warehouse are consisted of diverse combustibles, combustible liquid, and so on. Fire detection time may be delayed because the residents are less than office and commercial buildings. If fire detectors installed in rack type warehouses are inadaptable, the fire of the warehouse may be the great fire because of delaying of fire detection. In this paper, we studied what kinds of fire detectors are optimized in early detecting of rack type warehouse fire by real-scale fire tests. The fire detectors used in the tests are rate of rise type, fixed type, photo electric type, and aspirating type detectors. We considered optimum fire detecting method in rack type warehouses suggested by the response characteristic and comparative analysis of the fire detectors.

Keywords: fire detector, rack, response characteristic, warehouse

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63 Integrating of Multi-Criteria Decision Making and Spatial Data Warehouse in Geographic Information System

Authors: Zohra Mekranfar, Ahmed Saidi, Abdellah Mebrek

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This work aims to develop multi-criteria decision making (MCDM) and spatial data warehouse (SDW) methods, which will be integrated into a GIS according to a ‘GIS dominant’ approach. The GIS operating tools will be operational to operate the SDW. The MCDM methods can provide many solutions to a set of problems with various and multiple criteria. When the problem is so complex, integrating spatial dimension, it makes sense to combine the MCDM process with other approaches like data mining, ascending analyses, we present in this paper an experiment showing a geo-decisional methodology of SWD construction, On-line analytical processing (OLAP) technology which combines both basic multidimensional analysis and the concepts of data mining provides powerful tools to highlight inductions and information not obvious by traditional tools. However, these OLAP tools become more complex in the presence of the spatial dimension. The integration of OLAP with a GIS is the future geographic and spatial information solution. GIS offers advanced functions for the acquisition, storage, analysis, and display of geographic information. However, their effectiveness for complex spatial analysis is questionable due to their determinism and their decisional rigor. A prerequisite for the implementation of any analysis or exploration of spatial data requires the construction and structuring of a spatial data warehouse (SDW). This SDW must be easily usable by the GIS and by the tools offered by an OLAP system.

Keywords: data warehouse, GIS, MCDM, SOLAP

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62 Agile Methodology for Modeling and Design of Data Warehouses -AM4DW-

Authors: Nieto Bernal Wilson, Carmona Suarez Edgar

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The organizations have structured and unstructured information in different formats, sources, and systems. Part of these come from ERP under OLTP processing that support the information system, however these organizations in OLAP processing level, presented some deficiencies, part of this problematic lies in that does not exist interesting into extract knowledge from their data sources, as also the absence of operational capabilities to tackle with these kind of projects.  Data Warehouse and its applications are considered as non-proprietary tools, which are of great interest to business intelligence, since they are repositories basis for creating models or patterns (behavior of customers, suppliers, products, social networks and genomics) and facilitate corporate decision making and research. The following paper present a structured methodology, simple, inspired from the agile development models as Scrum, XP and AUP. Also the models object relational, spatial data models, and the base line of data modeling under UML and Big data, from this way sought to deliver an agile methodology for the developing of data warehouses, simple and of easy application. The methodology naturally take into account the application of process for the respectively information analysis, visualization and data mining, particularly for patterns generation and derived models from the objects facts structured.

Keywords: data warehouse, model data, big data, object fact, object relational fact, process developed data warehouse

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61 Real-Time Big-Data Warehouse a Next-Generation Enterprise Data Warehouse and Analysis Framework

Authors: Abbas Raza Ali

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Big Data technology is gradually becoming a dire need of large enterprises. These enterprises are generating massively large amount of off-line and streaming data in both structured and unstructured formats on daily basis. It is a challenging task to effectively extract useful insights from the large scale datasets, even though sometimes it becomes a technology constraint to manage transactional data history of more than a few months. This paper presents a framework to efficiently manage massively large and complex datasets. The framework has been tested on a communication service provider producing massively large complex streaming data in binary format. The communication industry is bound by the regulators to manage history of their subscribers’ call records where every action of a subscriber generates a record. Also, managing and analyzing transactional data allows service providers to better understand their customers’ behavior, for example, deep packet inspection requires transactional internet usage data to explain internet usage behaviour of the subscribers. However, current relational database systems limit service providers to only maintain history at semantic level which is aggregated at subscriber level. The framework addresses these challenges by leveraging Big Data technology which optimally manages and allows deep analysis of complex datasets. The framework has been applied to offload existing Intelligent Network Mediation and relational Data Warehouse of the service provider on Big Data. The service provider has 50+ million subscriber-base with yearly growth of 7-10%. The end-to-end process takes not more than 10 minutes which involves binary to ASCII decoding of call detail records, stitching of all the interrogations against a call (transformations) and aggregations of all the call records of a subscriber.

Keywords: big data, communication service providers, enterprise data warehouse, stream computing, Telco IN Mediation

Procedia PDF Downloads 84
60 Integration of Knowledge and Metadata for Complex Data Warehouses and Big Data

Authors: Jean Christian Ralaivao, Fabrice Razafindraibe, Hasina Rakotonirainy

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This document constitutes a resumption of work carried out in the field of complex data warehouses (DW) relating to the management and formalization of knowledge and metadata. It offers a methodological approach for integrating two concepts, knowledge and metadata, within the framework of a complex DW architecture. The objective of the work considers the use of the technique of knowledge representation by description logics and the extension of Common Warehouse Metamodel (CWM) specifications. This will lead to a fallout in terms of the performance of a complex DW. Three essential aspects of this work are expected, including the representation of knowledge in description logics and the declination of this knowledge into consistent UML diagrams while respecting or extending the CWM specifications and using XML as pivot. The field of application is large but will be adapted to systems with heteroge-neous, complex and unstructured content and moreover requiring a great (re)use of knowledge such as medical data warehouses.

Keywords: data warehouse, description logics, integration, knowledge, metadata

Procedia PDF Downloads 31
59 On-line Control of the Natural and Anthropogenic Safety in Krasnoyarsk Region

Authors: T. Penkova, A. Korobko, V. Nicheporchuk, L. Nozhenkova, A. Metus

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This paper presents an approach of on-line control of the state of technosphere and environment objects based on the integration of Data Warehouse, OLAP and Expert systems technologies. It looks at the structure and content of data warehouse that provides consolidation and storage of monitoring data. There is a description of OLAP-models that provide a multidimensional analysis of monitoring data and dynamic analysis of principal parameters of controlled objects. The authors suggest some criteria of emergency risk assessment using expert knowledge about danger levels. It is demonstrated now some of the proposed solutions could be adopted in territorial decision making support systems. Operational control allows authorities to detect threat, prevent natural and anthropogenic emergencies and ensure a comprehensive safety of territory.

Keywords: decision making support systems, emergency risk assessment, natural and anthropogenic safety, on-line control, territory

Procedia PDF Downloads 313
58 Inventory Management to Minimize Storage Costs and Improve Delivery Time in a Pharmaceutical Industry

Authors: Israel Becerril Rosales, Manuel González De La Rosa, Gerardo Villa Sánchez

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In this work, the effects that produce not having a good inventory management is analyzed, in addition of the way that how it affects the storage costs. The research began conducting the historical analysis about stored products, its storage capacity, and distribution. The results were not optimal, since in all its raw materials (RM) have overstocking, the warehouse capacity is only used by 61%, does not have a specific place for each of its RM, causing that the delivery times increases and makes difficult a cyclical inventory. These shortcomings allowed to view and select as design alternatives the inventory ABC, so that depending on the consumption of each RM would be redistributed by using economic amount requested. Also, the Delphi method to ensure the practical applicability of the proposed tool was used, taking in account comments and suggestions of the involved experts, as well as the compliance of NOM-059-SSA1-2015 good manufacturing practices of drug. With the actions implemented, the utilization rate drops of 61% to 32% capacity, it shows that the warehouse was not designed properly due to there is not an industrial engineering area.

Keywords: lead time, improve delivery, storage costs, inventory management

Procedia PDF Downloads 149
57 The Technological Problem of Simulation of the Logistics Center

Authors: Juraj Camaj, Anna Dolinayova, Jana Lalinska, Miroslav Bariak

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Planning of infrastructure and processes in logistic center within the frame of various kinds of logistic hubs and technological activities in them represent quite complex problem. The main goal is to design appropriate layout, which enables to realize expected operation on the desired levels. The simulation software represents progressive contemporary experimental technique, which can support complex processes of infrastructure planning and all of activities on it. It means that simulation experiments, reflecting various planned infrastructure variants, investigate and verify their eligibilities in relation with corresponding expected operation. The inducted approach enables to make qualified decisions about infrastructure investments or measures, which derive benefit from simulation-based verifications. The paper represents simulation software for simulation infrastructural layout and technological activities in marshalling yard, intermodal terminal, warehouse and combination between them as the parts of logistic center.

Keywords: marshalling yard, intermodal terminal, warehouse, transport technology, simulation

Procedia PDF Downloads 388
56 Medical Knowledge Management since the Integration of Heterogeneous Data until the Knowledge Exploitation in a Decision-Making System

Authors: Nadjat Zerf Boudjettou, Fahima Nader, Rachid Chalal

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Knowledge management is to acquire and represent knowledge relevant to a domain, a task or a specific organization in order to facilitate access, reuse and evolution. This usually means building, maintaining and evolving an explicit representation of knowledge. The next step is to provide access to that knowledge, that is to say, the spread in order to enable effective use. Knowledge management in the medical field aims to improve the performance of the medical organization by allowing individuals in the care facility (doctors, nurses, paramedics, etc.) to capture, share and apply collective knowledge in order to make optimal decisions in real time. In this paper, we propose a knowledge management approach based on integration technique of heterogeneous data in the medical field by creating a data warehouse, a technique of extracting knowledge from medical data by choosing a technique of data mining, and finally an exploitation technique of that knowledge in a case-based reasoning system.

Keywords: data warehouse, data mining, knowledge discovery in database, KDD, medical knowledge management, Bayesian networks

Procedia PDF Downloads 271
55 Analysis of Economic Order Quantity, Safety Stock, Maximum Inventory Control, Lot Size and Reorder Point for Engro Polymers and Chemicals

Authors: Ali Akber Jaffri, Asad Naseem, Javeria Khan, Zubair Hamza, Ishtiaq

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The purpose of this study is to determine safety stock, maximum inventory level, reordering point, and reordering quantity by rearranging lot sizes for supplier and customer in MRO (maintenance repair operations) warehouse of Engro Polymers & Chemicals. To achieve the aim, physical analysis method and excel commands were carried out to elicit the customer and supplier data provided by the company. Initially, we rearranged the current lot sizes and MOUs (measure of units) in SAP software. Due to change in lot sizes, we have to determine the new quantities for safety stock, maximum inventory, reordering point and reordering quantity as per company's demand. By proposed system, we saved extra cost in terms of reducing time of receiving from vendor and in issuance to customer, ease of material handling in MRO warehouse and also reduce human efforts.

Keywords: maintenance repair operation, maximum inventory, reorder quantity, safety stock

Procedia PDF Downloads 171
54 Optimization of Headspace Solid Phase Microextraction (SPME) Technique Coupled with GC MS for Identification of Volatile Organic Compounds Released by Trogoderma Variabile

Authors: Thamer Alshuwaili, Yonglin Ren, Bob Du, Manjree Agarwal

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The warehouse beetle, Trogoderma variabile Ballion (Coleoptera: Dermestidae), is a major pest of packaged and processed stored products. Warehouse beetle is the common name which was given by Okumura (1972). This pest has been reported to infest 119 different commodities, and it is distributed throughout the tropical and subtropical parts of the world. Also, it is difficult to control because of the insect's ability to stay without food for long times, and it can survive for years under dry conditions and low-moisture food, and it has also developed resistance to many insecticides. The young larvae of these insects can cause damage to seeds, but older larvae prefer to feed on whole grains. The percentage of damage caused by these insects range between 30-70% in the storage. T. variabile is the species most responsible for causing significant damage in grain stores worldwide. Trogoderma spp. is a huge problem for cereal grains, and there are many countries, such as the USA, Australia, China, Kenya, Uganda and Tanzania who have specific quarantine regulations against possible importation. Also, grain stocks can be almost completely destroyed because of the massive populations the insect may develop. However, the purpose of the current research was to optimize conditions to collect volatile organic compound from Trogoderma variabile at different life stages by using headspace solid phase microextraction (SPME) coupled with gas chromatography-mass spectrometry (GC-MS) and flame ionization detection (FID). Using SPME technique to extract volatile from insects is an efficient, straightforward and nondestructive method. Result of the study shows that 15 insects were optimal number for larvae and adults. Selection of the number of insects depend on the height of the peak area and the number of peaks. Sixteen hours were optimized as the best extraction time for larvae and 8 hours was the optimal number of adults.

Keywords: Trogoderma variabile, warehouse beetle , GC-MS, Solid phase microextraction

Procedia PDF Downloads 37
53 Analysis of Inventory Control, Lot Size and Reorder Point for Engro Polymers and Chemicals

Authors: Ali Akber Jaffri, Asad Naseem, Javeria Khan

Abstract:

The purpose of this study is to determine safety stock, maximum inventory level, reordering point, and reordering quantity by rearranging lot sizes for supplier and customer in MRO (maintenance repair operations) warehouse of Engro Polymers & Chemicals. To achieve the aim, physical analysis method and excel commands were carried out to elicit the customer and supplier data provided by the company. Initially, we rearranged the current lot sizes and MOUs (measure of units) in SAP software. Due to change in lot sizes we have to determine the new quantities for safety stock, maximum inventory, reordering point and reordering quantity as per company's demand. By proposed system, we saved extra cost in terms of reducing the time of receiving from vendor and in issuance to customer, ease of material handling in MRO warehouse and also reduce human efforts. The information requirements identified in this study can be utilized in calculating Economic Order Quantity.

Keywords: carrying cost, economic order quantity, fast moving, lead time, lot size, MRO, maximum inventory, ordering cost, physical inspection, reorder point

Procedia PDF Downloads 137
52 The Study of Cost Accounting in S Company Based on TDABC

Authors: Heng Ma

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Third-party warehousing logistics has an important role in the development of external logistics. At present, the third-party logistics in our country is still a new industry, the accounting system has not yet been established, the current financial accounting system of third-party warehousing logistics is mainly in the traditional way of thinking, and only able to provide the total cost information of the entire enterprise during the accounting period, unable to reflect operating indirect cost information. In order to solve the problem of third-party logistics industry cost information distortion, improve the level of logistics cost management, the paper combines theoretical research and case analysis method to reflect cost allocation by building third-party logistics costing model using Time-Driven Activity-Based Costing(TDABC), and takes S company as an example to account and control the warehousing logistics cost. Based on the idea of “Products consume activities and activities consume resources”, TDABC put time into the main cost driver and use time-consuming equation resources assigned to cost objects. In S company, the objects focuses on three warehouse, engaged with warehousing and transportation (the second warehouse, transport point) service. These three warehouse respectively including five departments, Business Unit, Production Unit, Settlement Center, Security Department and Equipment Division, the activities in these departments are classified by in-out of storage forecast, in-out of storage or transit and safekeeping work. By computing capacity cost rate, building the time-consuming equation, the paper calculates the final operation cost so as to reveal the real cost. The numerical analysis results show that the TDABC can accurately reflect the cost allocation of service customers and reveal the spare capacity cost of resource center, verifies the feasibility and validity of TDABC in third-party logistics industry cost accounting. It inspires enterprises focus on customer relationship management and reduces idle cost to strengthen the cost management of third-party logistics enterprises.

Keywords: third-party logistics enterprises, TDABC, cost management, S company

Procedia PDF Downloads 273
51 Storage Assignment Strategies to Reduce Manual Picking Errors with an Emphasis on an Ageing Workforce

Authors: Heiko Diefenbach, Christoph H. Glock

Abstract:

Order picking, i.e., the order-based retrieval of items in a warehouse, is an important time- and cost-intensive process for many logistic systems. Despite the ongoing trend of automation, most order picking systems are still manual picker-to-parts systems, where human pickers walk through the warehouse to collect ordered items. Human work in warehouses is not free from errors, and order pickers may at times pick the wrong or the incorrect number of items. Errors can cause additional costs and significant correction efforts. Moreover, age might increase a person’s likelihood to make mistakes. Hence, the negative impact of picking errors might increase for an aging workforce currently witnessed in many regions globally. A significant amount of research has focused on making order picking systems more efficient. Among other factors, storage assignment, i.e., the assignment of items to storage locations (e.g., shelves) within the warehouse, has been subject to optimization. Usually, the objective is to assign items to storage locations such that order picking times are minimized. Surprisingly, there is a lack of research concerned with picking errors and respective prevention approaches. This paper hypothesize that the storage assignment of items can affect the probability of pick errors. For example, storing similar-looking items apart from one other might reduce confusion. Moreover, storing items that are hard to count or require a lot of counting at easy-to-access and easy-to-comprehend self heights might reduce the probability to pick the wrong number of items. Based on this hypothesis, the paper discusses how to incorporate error-prevention measures into mathematical models for storage assignment optimization. Various approaches with respective benefits and shortcomings are presented and mathematically modeled. To investigate the newly developed models further, they are compared to conventional storage assignment strategies in a computational study. The study specifically investigates how the importance of error prevention increases with pickers being more prone to errors due to age, for example. The results suggest that considering error-prevention measures for storage assignment can reduce error probabilities with only minor decreases in picking efficiency. The results might be especially relevant for an aging workforce.

Keywords: an aging workforce, error prevention, order picking, storage assignment

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50 Applying (1, T) Ordering Policy in a Multi-Vendor-Single-Buyer Inventory System with Lost Sales and Poisson Demand

Authors: Adel Nikfarjam, Hamed Tayebi, Sadoullah Ebrahimnejad

Abstract:

This paper considers a two-echelon inventory system with a number of warehouses and a single retailer. The retailer replenishes its required items from warehouses, and assembles them into a single final product. We assume that each warehouse supplies only one kind of the raw material for the retailer. The demand process of the final product is assumed to be Poissson, and unsatisfied demand of the final product will be lost. The retailer applies one-for-one-period ordering policy which is also known as (1, T) ordering policy. In this policy the retailer orders to each warehouse a fixed quantity of each item at fixed time intervals, which the fixed quantity is equal to the utilization of the item in the final product. Since, this policy eliminates all demand uncertainties at the upstream echelon, the standard lot sizing model can be applied at all warehouses. In this paper, we calculate the total cost function of the inventory system. Then, based on this function, we present a procedure to obtain the optimal time interval between two consecutive order placements from retailer to the warehouses, and the optimal order quantities of warehouses (assuming that there are positive ordering costs at warehouses). Finally, we present some numerical examples, and conduct numerical sensitivity analysis for cost parameters.

Keywords: two-echelon supply chain, multi-vendor-single-buyer inventory system, lost sales, Poisson demand, one-for-one-period policy, lot sizing model

Procedia PDF Downloads 217
49 Designing of Tooling Solution for Material Handling in Highly Automated Manufacturing System

Authors: Muhammad Umair, Yuri Nikolaev, Denis Artemov, Ighor Uzhinsky

Abstract:

A flexible manufacturing system is an integral part of a smart factory of industry 4.0 in which every machine is interconnected and works autonomously. Robots are in the process of replacing humans in every industrial sector. As the cyber-physical-system (CPS) and artificial intelligence (AI) are advancing, the manufacturing industry is getting more dependent on computers than human brains. This modernization has boosted the production with high quality and accuracy and shifted from classic production to smart manufacturing systems. However, material handling for such automated productions is a challenge and needs to be addressed with the best possible solution. Conventional clamping systems are designed for manual work and not suitable for highly automated production systems. Researchers and engineers are trying to find the most economical solution for loading/unloading and transportation workpieces from a warehouse to a machine shop for machining operations and back to the warehouse without human involvement. This work aims to propose an advanced multi-shape tooling solution for highly automated manufacturing systems. The currently obtained result shows that it could function well with automated guided vehicles (AGVs) and modern conveyor belts. The proposed solution is following requirements to be automation-friendly, universal for different part geometry and production operations. We used a bottom-up approach in this work, starting with studying different case scenarios and their limitations and finishing with the general solution.

Keywords: artificial intelligence, cyber physics system, Industry 4.0, material handling, smart factory, flexible manufacturing system

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48 Implementation of Lean Tools (Value Stream Mapping and ECRS) in an Oil Refinery

Authors: Ronita Singh, Yaman Pattanaik, Soham Lalwala

Abstract:

In today’s highly competitive business environment, every organization is striving towards lean manufacturing systems to achieve lower Production Lead Times, lower costs, less inventory and overall improvement in supply chains efficiency. Based on the similar idea, this paper presents the practical application of Value Stream Mapping (VSM) tool and ECRS (Eliminate, Combine, Reduce, and Simplify) technique in the receipt section of the material management center of an oil refinery. A value stream is an assortment of all actions (value added as well as non-value added) that are required to bring a product through the essential flows, starting with raw material and ending with the customer. For drawing current state value stream mapping, all relevant data of the receipt cycle has been collected and analyzed. Then analysis of current state map has been done for determining the type and quantum of waste at every stage which helped in ascertaining as to how far the warehouse is from the concept of lean manufacturing. From the results achieved by current VSM, it was observed that the two processes- Preparation of GRN (Goods Receipt Number) and Preparation of UD (Usage Decision) are both bottle neck operations and have higher cycle time. This root cause analysis of various types of waste helped in designing a strategy for step-wise implementation of lean tools. The future state thus created a lean flow of materials at the warehouse center, reducing the lead time of the receipt cycle from 11 days to 7 days and increasing overall efficiency by 27.27%.

Keywords: current VSM, ECRS, future VSM, receipt cycle, supply chain, VSM

Procedia PDF Downloads 167