Showing papers in "Logistics Research in 2016"

Challenges and future perspectives for the life cycle of manufacturing networks in the mass customisation era

Abstract: Manufacturers and service providers are called to design, plan, and operate globalised manufacturing networks, addressing to challenges of increasing complexity in all aspects of product and production life cycle. These factors, caused primarily by the increasing demand for product variety and shortened life cycles, generate a number of issues related to the life cycle of manufacturing systems and networks. Focusing on the aspects that affect manufacturing network performance, this work reviews the exiting literature around the design, planning, and control of manufacturing networks in the era of mass customisation and personalisation. The considered life cycle aspects include supplier selection, initial manufacturing network design, supply chain coordination, complexity, logistics management, inventory and capacity planning and management, lot sizing, enterprise resource planning, customer relationship management, and supply chain control. Based on this review and in correlation with the view of the manufacturing networks and facilities of the future, directions for the development of methods and tools to satisfy product–service customisation and personalisation are promoted.

A methodology to develop collaborative robotic cyber physical systems for production environments

Abstract: The paper identifies the need for human robot collaboration for conventional light weight and heavy payload robots in future manufacturing environment. An overview of state of the art for these types of robots shows that there exists no solution for human robot collaboration. Here, we consider cyber physical systems, which are based on human worker participation as an integrated role in addition to its basic components. First, the paper identifies the collaborative schemes and a formal grading system is formulated based on four performance indicators. A detailed sensor catalog is established for one of the collaboration schemes, and performance indices are computed with various sensors. This study reveals an assessment of best and worst possible ranges of performance indices that are useful in the categorization of collaboration levels. To illustrate a possible solution, a hypothetical industrial scenario is discussed in a production environment. Generalizing this approach, a design methodology is developed for such human robot collaborative environments for various industrial scenarios to enable solution implementation.

Topological robustness of the global automotive industry

Abstract: The manufacturing industry is characterized by large-scale interdependent networks as companies buy goods from one another, but do not control or design the overall flow of materials. The result is a complex emergent structure with which companies connect to each other. The topology of this structure impacts the industry’s robustness to disruptions in companies, countries, and regions. In this work, we propose an analysis framework for examining robustness in the manufacturing industry and validate it using an empirical dataset. Focusing on two key angles, suppliers and products, we highlight macroscopic and microscopic characteristics of the network and shed light on vulnerabilities of the system. It is shown that large-scale data on structural interdependencies can be examined with measures based on network science.

Complexity drivers in manufacturing companies: a literature review

Abstract: Increasing complexity in manufacturing companies has been one of the biggest issues during the last years. Companies in high-technology marketplaces are confronted with technology innovation, dynamic environmental conditions, changing customer requirements, globalization of markets and competitions as well as market uncertainty. Manufacturing companies can’t escape these trends, which induce an increasing amount of complexity. Reasons for this phenomenon are internal and external sources of complexity so-called complexity drivers. Identifying, analyzing and understanding complexity drivers are the first step for complexity management’s development and implementation. Complexity management is a strategic issue for companies to be competitive. The purpose of this literature review is to provide a general overview regarding complexity drivers in manufacturing companies. The different definitions of complexity drivers are described, and a new overall definition of complexity drivers is presented. Furthermore, the existing approaches for complexity driver’s identification, operationalization and visualization are identified and specified. For complexity driver’s clustering, a superior classification system was developed based upon existing classification systems in the literature. The literature review was done by systematically analyzing and collecting existing literature and reveals gaps according to methodology and issue. Existing literature reviews are only focused on specific issues, such as logistics or supply chain management, and do not point out the applied research methodology in detail. A general overview regarding complexity drivers in manufacturing companies and along the value chain does not exist yet.

Logistics performance measurement system for the automotive industry

Abstract: Logistics can be seen as a key competitive factor in the automotive industry due to the rising number of model variants and options. With the increasing importance of logistics (Gunasekaran et al. in Int J Prod Econ 87(3):333–347, 2004), the evaluation of logistics effectiveness and efficiency is gaining increased attention. Logistics performance management (PM) is the key to quantifying the current state and improvement potentials within logistics. To account for the increasing importance of a supply chain, logistics PM needs to start at the supplier and reach at least until the original equipment manufacturer’s (OEM) assembly line. Furthermore, logistics PM needs to be in line with the latest logistics concepts, mainly based on lean logistics. In contrast to the great importance of logistics PM, the literature analysis shows a limited availability of logistics performance measurement systems (PMS), which are actually applicable to industry within a lean logistics context. The systems in the literature are either too high level to be useful to practitioners (e.g. supply chain-orientated systems) or too narrow in focus, and therefore do not cover the supply chain and lean perspectives. In the following paper, a logistics PMS is developed which allows for assessing the effectiveness and efficiency of current logistics processes. The developed approach incorporates the latest logistics concepts in the automotive industry, integrates a process orientation with a supply chain perspective, and is defined with the specificity required to enable the implementation within a specific industry context and triggers continuous improvement. The suggested framework is evaluated in an automotive context, presenting a short case study on the implementation of the proposed framework at two sites of a German automotive OEM. Furthermore, future application potentials and development needs are summarised. The paper’s contribution to the literature is in the field of logistics PM, specifically in the automotive industry. It offers a new approach, applicable to automotive logistics, which follows lean principles. For industry, this paper provides specific suggestions for a PMS, as well as performance indicators to holistically monitor the logistics chain. While being generic in terms of its definition, it can be seen as specific enough to be applicable in industry with limited adjustments. It provides practitioners with answers to the question of which performance indicators to use in today’s automotive logistics chain and which indicators serve as a base for continuous improvement.

Behavioral factors influencing partner trust in logistics collaboration: a review

Abstract: Logistics collaboration has emerged a prevalent strategy to mitigate challenge individuals and organizations encounter. A successful collaboration, however, depends on certain trustworthy behaviors partner exhibit. To that end, understanding aspects constituting behavioral uncertainty and mechanisms by which such aspects affect partner trust is a necessary. This necessity counts on emergent behavioral trust uncertainties, constituted by partner’s actions and interactions occurring during collaboration. While this is a necessary requirement, most of the studies in the literature lack to take into account the influence of behavioral uncertainty on collaboration and partner trust. To that effect, this paper uncovers outlined limitation by establishing behavioral factors influencing partner trust in operational stage of logistics collaboration. To accomplish this objective, a systematic literature review (SLR) is deployed to consolidate research domains of logistics, supply chain, collaboration, and trust. SLR proceeds by defining a review protocol, followed by a search process conducted in 5 databases using 20 search terms on articles published between 2001 and 2015 inclusively. Among findings this SLR has revealed are four behavioral factors and thirteen criteria proposed to affect partner trust. Additionally, these factors constitute success and measurable criteria needed for empirical investigation which may employ experimental and/or case-study methods. Moreover, synthesized factors extend further an understanding of behavioral trust in ad hoc collaborative networks, a large part of which being supported by networks of humans and computers.

Quantifying the effects of additive manufacturing on supply networks by means of a facility location-allocation model

Abstract: Additive manufacturing (AM), or popular scientific 3D printing, disseminates in more and more production processes. This changes not only production processes themselves, e.g. by replacing subtractive production technologies, but AM will in all likelihood also impact the configuration of supply networks. Due to a more efficient use of raw materials, transportation relations may change and production sites may be relocated. How this change will look like is part of an ongoing discussion in industry and academia. However, quantitative studies on this question are scarce. In order to quantify the potential impact of AM on a two-stage supply network, we use a facility location model. The impact of AM on the production process is integrated into the model by varying resource efficiency ratios. We create a test data set of 700 instances. Features of this data set are, among others, different geographical clusters of source nodes, production nodes, and customer nodes. By means of a computational study, the impact of AM on the supply network structure is measured by four indicators. In the context of our experimental set-up, AM reduces the overall transportation costs of a supply network compared to subtractive production. However, the share of the transportation costs on the second stage of a supply network in the total costs increases significantly. Therefore, supply networks in which production sites and customer sites are closely spaced improve their cost-effectiveness stronger than other regional configurations of supply networks.

Exploring the impact of traffic congestion on CO2 emissions in freight distribution networks

Abstract: This research quantifies the impact that regular road traffic congestion has on the CO2 emissions of a real-world distribution network, and it studies the consequences when the number of distribution centers changes. For this purpose, this study makes use of a network model allowing for a detailed representation of all relevant transport operations, including production flows between factories and distribution centers, line haul shipments between distribution centers and customers, and round/delivery trips between transshipment points and retailer locations for the last mile. The processed trip and traffic information does not rely on standard traffic data collection approaches, such as interviews, in situ technologies, or floating car data, but the road traffic data are retrieved from an online navigation service, such as Bing Maps, Google Maps, Inrix, Here, and TomTom. This study proves that online navigation services may considerably contribute to future research projects analyzing CO2 sensitivities and greenhouse gas cutting opportunities in logistics networks.

A petrol station replenishment problem: new variant and formulation

Abstract: One of the most important problems in the petroleum industry is the well-known petrol station replenishment problem with time windows, which calls for the determination of optimal routes by using a fleet of tank trucks to serve a set of petrol stations over a given planning horizon. In this paper, we introduce a model and solve a specific problem that originates from a real-life application arising in the fuel distribution where specific attention is paid to tank trucks with compartments and customers with different types of products and time windows. Literally, we call the resulting problem the multi-compartment vehicle routing problem with time windows (MCVRPTW). To solve the MCVRPTW, we begin by describing the problem, providing its mathematical formulation and discussing the sense of its constraints. As the problem is NP-hard, we propose an efficient tabu search algorithm for its solution. We introduce the Kolmogorov–Smirnov statistic into the framework of the tabu search to manage the neighbourhood size. We evaluate the performance of the algorithm on a set of vehicle routing problems with time windows instances as well as other realistic instances. Our results are compared to CPLEX, to the heuristics reported in the literature and also to those extracted from the company plans.

Performance measurement in horizontal LSP cooperation as a field of conflict: the preventive role of collaborative processes

Abstract: Engaging in horizontal cooperation is a prevalent strategy of logistics service providers (LSPs) to deal with the challenges they are confronted with by today’s supply chain environment (e.g., complex and global supply chains, increased competition). These horizontal LSP alliances, for example, for providing a national less-than-truck-load network, are complex in nature and characterized by coopetition. This situation provides a fertile soil for conflict. The literature outlines that conflict, the experience that goals or interests are in opposition, emerges in areas of essential activities and that performance measurement is such an area. Yet, when these differences meet, they also become apparent and can potentially be eased. Against this background, we develop a theoretical model and test it with survey data from 193 horizontal LSP alliances. The results show that, in general, applying collaborative processes in the performance measurement reduces overall conflict in horizontal LSP cooperations. Further, based on resource dependency theory and social contract theory, this research identifies the power structure of the alliance as a relevant contingency factor and shows that joint action in PM is effective in reducing conflict in symmetrical power cooperations, while information sharing as less intense form of collaboration is effective in reducing conflict in asymmetrical power cooperations.

Producer–buyer interaction under mass customization: analysis through automotive industry

Abstract: Automotive companies have successfully adopted mass customization. However, this production method has complicated the sales process as the customer has to go through a lot of steps to specify the product. Thus, it is important that the sales process is modified to make the producer–buyer interaction efficient in mass customization. There is no study that examines whether the modifications in the sales processes of the automotive industry are according to the needs of mass customization. In this context, we investigate this relation for two leading automotive companies, for the customers of the USA, from 2008 till 2015. By applying statistical calculations, we observe that the increase in mass customization has actually declined customer satisfaction of the sales process. Hence, there is a further need to modify the sales process according to the needs of mass customization. Otherwise, the long-term success of mass customization of a car manufacturer is at risk.

A mobile application for knowledge-enriched short-term scheduling of complex products

Abstract: The ever-increasing product complexity, especially for the case of engineer-to-order products, highly affects the performance of manufacturing systems. Therefore, a high degree of flexibility is needed during daily decision-making activities, such as production scheduling. For addressing this challenge, this research work proposes a knowledge-enriched short-term job-shop scheduling mechanism, which is implemented into a mobile application. More precisely, it focuses on the short-term scheduling of the resources of the machine shop, through an intelligent algorithm that generates and evaluates alternative assignments of resources to tasks. Based on the requirements of a new order, a similarity mechanism retrieves successfully executed past orders together with a dataset that includes the processing times, the job and task sequence, and the suitable resources. In addition to that, the similarity mechanism is used to calculate the due-date assignments of the orders based on the knowledge stored in past cases. Afterwards, it adapts these parameters to the requirements of the new order so as to evaluate the alternative schedules and identify a good alternative in a timely manner. The deriving schedule can be presented on mobile devices, and it can be manipulated by the planner on-the-fly respecting tasks precedence constraints and machine availability. A case study from the mould-making industry is used for validating the proposed method and application.

Penalty and reward contracts between a manufacturer and its logistics service provider

Abstract: Contracts are used to coordinate disparate but interdependent members of the supply chain. Conflicting objectives of these members and lack of coordination among the members lead to inefficiencies in matching supply with demand. This study reviews different types of contracts and proposes a methodology to be used by companies for analyzing coordinating contracts with their business partners. Efficiency of the contract is determined by comparing the performance of independent companies under the contract to the supply chain performance under the central decision maker assumption. We propose a penalty and reward contract between a manufacturer and its logistics service provider that distributes the manufacturer’s products on its retail network. The proposed contract analysis methodology is empirically tested with transportation data of a consumer durable goods company (CDG) and its logistics service provider (LSP). The results of this case study suggest a penalty and reward contract between the CDG and its LSP that improves not only the individual firm’s objective functions but also the supply chain costs. Compared to the existing situation, the coordination efficiency of the penalty and reward contract is 96.1 %, proving that optimizing contract parameters improves coordination and leads to higher efficiencies.

A memetic algorithm with extended random path encoding for a closed-loop supply chain model with flexible delivery

Abstract: Logistics network design is a major strategic issue in supply chain management of both forward and reverse flow, which industrial players are forced but not equipped to handle. To avoid sub-optimal solution derived by separated design, we consider an integrated forward reverse logistics network design, which is enriched by using a complete delivery graph. We formulate the cyclic seven-stage logistics network problem as a NP hard mixed integer linear programming model. To find the near optimal solution, we apply a memetic algorithm with a neighborhood search mechanism and a novel chromosome representation including two segments. The power of extended random path-based direct encoding method is shown by a comparison to commercial package in terms of both quality of solution and computational time. We show that the proposed algorithm is able to efficiently find a good solution for the flexible integrated logistics network.

Towards dynamic contract extension in supplier development

Abstract: We consider supplier development within a supply chain consisting of a single manufacturer and a single supplier. Because investments in supplier development are usually relationship-specific, safeguard mechanisms against the hazards of partner opportunism have to be installed. Here, formal contracts are considered as the primary measure to safeguard investments. However, formal contracts entail certain risks, e.g., a lack of flexibility, particular in an ambiguous environment. We propose a receding horizon control scheme to mitigate possible contractual drawbacks while significantly enhancing the supplier development process and, thus, to increase the overall supply chain profit. Our findings are validated by a numerical case study.

M2M Potentials in logistics and transportation industry

Abstract: All over the world, road congestion is among the most prevalent transport challenges usually in urban environments which not only increases fuel consumption and emission of harmful gases, but also causes stress for the drivers. Intelligent Transportation System (ITS) enables a better use of the infrastructure by connecting vehicles to other vehicles as well as infrastructure and thus delivers a faster communication opportunity to ensure safe and secure driving. Machine-to-machine (M2M) communication is one of the latest information and communication technologies which offers ubiquitous connectivity among several smart devices. The use of mobile (cellular) M2M communications has emerged due to the wide range, high reliability, increased data rates, decreased costs as well as easy and short-term deployment opportunities. Since the radio spectrum is a scarce resource, M2M traffic can potentially degrade the performance of mobile networks due to the large number of devices sending small-sized data. This paper presents an efficient data multiplexing scheme by using Long-Term Evolution Advanced (LTE-Advanced) Relay Nodes, which aggregates M2M traffic to maximize radio resource utilization. Extensive system-level simulations are performed using an LTE-Advanced-based model developed in the RIVERBED modeler to evaluate the performance of the proposed data multiplexing scheme. Simulation results show that approximately 40 % more smart M2M devices used in ITS and logistics are served per LTE-Advanced cell under the present system settings.

Doctoral dissertations in logistics and supply chain management: a review of Nordic contributions from 2009 to 2014

Abstract: The purpose of this paper is to identify and analyze Nordic doctoral dissertations in logistics and supply chain management (SCM) published from the years 2009–2014. The paper is based on a detailed review of 150 doctoral dissertations. Compared with previous studies, this paper identifies a trend toward: more dissertations based on a collection of articles than monographs; more dissertations focusing on inter-organizational SCM issues; a shift from a focal company perspective to functional aspects and supply chain-related research; and finally, a continued decreased focus on the philosophy of science. A score for measuring the significance of article-based dissertations is also proposed.

Mechanical feasibility and decentralized control algorithms of small-scale, multi-directional transport modules

Abstract: In this paper, we describe a conveyor matrix consisting of small-scale, multi-directional transport modules that are considerably smaller than the transported packets. If a large number of these modules are combined into a matrix, the emerging network solves transport tasks through cooperation of the modules. The control of the system is decentralized: Each module has its own control and derives its actions only from its own sensor and received messages from neighboring modules. Both the mechanical feasibility of the modules and the control algorithms are presented. We show that collision-free routes can be planned by the decentralized controlled system. Lastly, we present the necessary algorithms to detect and prevent deadlocks.

A coordinated scheduling of delivery and inventory in a multi-location hospital supplied with a central pharmacy

Abstract: In today’s manufacturing outlook, coordinated scheduling of delivery and inventory represents a leading leverage to enhance the competitiveness of firms which aims to address the new challenge coming from scheduling problems. Though in the last decades this kind of issue has been extensively approached in the literature, a set of constraints and compulsory dispositions strongly increases the complexity of the considered problem. Actors of the pharmaceutical supply chain have to meet various global regulatory requirements while handling, storing and distributing environmentally sensitive products. The studied problem in this paper focuses on a real-case scheduling problem in a multi-location hospital supplied with a central pharmacy. The objective of this work is to find a coordinated production and delivery schedule such that the sum of delivery and inventory costs is minimized. A mixed-integer programming formulation is first detailed to consider the problem under study. Then, a branch-and-bound algorithm is proposed as an exact method and a dedicated heuristic algorithm is highlighted to solve the problem. At last, the experimental results show the efficiency of the proposed solving methods, based on the two following criteria: solution quality and processing time.

Development and implementation of a green logistics-oriented framework for batch process industries: two case studies

Abstract: In recent years, green logistics has received increasing interest due to the rise in greenhouse gases emission from transport operations. It is a promising approach to managing supply chain decisions to reduce environmental damages. Many models have been developed in the literature to study the environmental aspects of routing problems. However, these models have not been implemented in practice, particularly in batch processing industries. In this paper, we developed a two-stage stochastic model which integrates the tactical and operational decision levels to reduce the economic and environmental impacts of transport activities. This model generates optimum vehicle routes and their delivery velocities with the objective of minimizing the total distribution cost and the related emissions. We implemented the proposed model in two case studies drawn from the fast-moving consumer goods industry. This resulted in a cost reduction of up to 13 % of the total related economic and environmental costs compared to the actual situation at the test sites. These results also show the potential of green logistics-based models to improve the current modelling capabilities for batch distribution planning.

An advanced tabu search approach to the dynamic airlift loading problem

Abstract: This research effort presents a tabu search algorithm to solve the dynamic airlift loading problem. Given a set of palletized cargo items which require transportation from an aerial port of embarkation to an aerial port of debarkation within a pre-specified time frame, the dynamic airlift loading problem seeks to partition the pallets into aircraft loads, select an efficient and effective subset of aircraft from available aircraft, and assign the pallets to allowable positions on those aircraft. The dynamic airlift loading problem differs from many partitioning and packing problems described in the literature because, in addition to spatial constraints, factors such as allowable cabin load, balance restrictions, and temporal restrictions on cargo and aircraft are included. The algorithm developed in this research, the dynamic airlift loading problem-tabu search, was tested on a variety of problem instances. Since real-world solutions are hand generated by subject matter experts and no previous research effort has solved this specific problem, the algorithmic results are compared to compute lower bounds on the number of aircraft trips required.

A framework and risk analysis for supply chain emission trading

Abstract: Reports show that it is necessary to control greenhouse gas emissions from the supply chain perspective. Numerous authors have already started quantifying the impacts of emission trading on supply chain performance in terms of cost and emissions. However, rare effort is made to conceptualize this implementation. This paper generates firstly one conceptual framework for supply chain emission trading through a review of previous work and then asserts how practically it could work out. In addition, the risks confronted by firms and supply chains under emission trading are identified considering each step involved in the framework. These risks are further classified based on the concept of supply chain risks. Results show that the implementation of emission trading on supply chain would raise additional risks into existing supply chain risk portfolio. At last, this paper provides some risk mitigation measures for those identified risks.

Probabilistic model of divided conveyer belt to increase input performance of sorter feed systems

Abstract: Maximization of input performance and throughput in sorting systems is a crucial interest of the industry. Due to self-impediment and mutual impediment at the input stage, a considerable reduction of throughput may occur. In this paper, a new design of a feeding system is discussed that addresses this deficiency, the divided conveyer belt (proposed by the author in 2003, patent DE 100 51 932 A). The new design is based on belt segments working at different, sequentially increasing speeds and takes into account ergonomic aspects to avoid worker fatigue. Based on a probabilistic model, that is the topic of this article, it will be argued that combined with sufficient spatial input variability the divided conveyer belt design substantially reduces the deficiency caused by mutual impediment and, consequently, increases input performance.

Modeling of decentralized processes in dynamic logistic networks by means of graph-transformational swarms

Abstract: In this paper, we propose to employ the framework of graph-transformational swarms for the modeling of dynamic logistic networks with decentralized processing and control. The members of a graph-transformational swarm act and interact in a common environment graph with massive parallelism of rule-based activities according to local control conditions and a global cooperation condition. This corresponds directly to the logistic hubs and their processes in a logistic network where the processes run simultaneously and autonomously with a proper way of coordination. This covers also dynamic changes on the network structures as the members of a swarm can change the environment anyhow. The approach is illustrated by the modeling of automated guided vehicles.

Extension of multi-commodity closed-loop supply chain network design by aggregate production planning

Abstract: In this work the influence of production and capacity planning on decisions regarding facility location, distribution quantities and component remanufacturing (and vice versa) in a closed-loop supply chain network (CLSCN) with multiple make-to-order products is studied. A mathematical model, the facility location, capacity and aggregate production planning with remanufacturing (FLCAPPR) model, for designing the CLSCN, for planning capacities at the facilities and for structuring the production and distribution system of the network cost-optimally, is formulated. It consists of a facility location model with component remanufacturing over multiple time periods, which is extended by capacity and production planning on an aggregate level. The problem is solved for an example set of data which is based on previous CLSC research in the copier industry. In a numerical study the effect of the extended planning approach on the decision to process returned products is determined. Furthermore, the FLCAPPR model is solved for different returned product quantities and numbers of periods in the planning horizon to study the influence on the network design and on the procuring, production and distribution quantities. It turns out that decisions regarding the locations of and the capacity equipment at facilities and decisions regarding the production and distribution system are interdependent; therefore, they have to be managed jointly. Furthermore, it is shown that the decision to process returned products and use remanufactured components in the production does depend not only on the costs, but also on the quantity of returned products and the length of the planning horizon.