Factory Gate Pricing: An Analysis of the Dutch Retail Distribution

Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.supply chain management;factory gate pricing;retail distribution

Two-echelon freight transport optimisation: unifying concepts via a systematic review

Multi-echelon distribution schemes are one of the most common strategies adopted by the transport companies in an aim of cost reduction, but their identification in scientific literature is not always easy due to a lack of unification. This paper presents the main concepts of two-echelon distribution via a systematic review, in the specific a meta-narrative analysis, in order to identify and unify the main concepts, issues and methods that can be helpful for scientists and transport practitioners. The problem of system cost optimisation in two-echelon freight transport systems is defined. Moreover, the main variants are synthetically presented and discussed. Finally, future research directions are proposed.location-routing problems, multi-echelon distribution, cross-docking, combinatorial optimisation, systematic review.

4th Party Logistics Problem Optimizer

This thesis considers a pickup and delivery problem with multiple time windows, a complex cost structure and factory constraints. We formulated the problem as a mathematical model and created an instance generator based on real data. We also implemented a heuristic solution method for the problem and ran extensive statistical tests. The mathematical model shows the complexity of the problem and is implemented in AMPL to give a benchmark for the proposed solution method. The instance generator was created based on real anonymized data from a 4th party logistics (4PL) company. The proposed solution method, called the 4th Party Logis- tics Optimizer, is a meta-heuristic approach with industry specific implementations. The solution method is refined through extensive statistical experiments. The ex- periments determine which parts of the solution method have a significant positive impact on the objective value. This leads to a final composition of our solution method. The final solution method is robustly giving near optimal solutions to re- alistic sized instances in seconds, and is a powerful tool for companies facing the proposed adaptation of the pickup and delivery problem.Masteroppgave i informatikkINF399MAMN-PROGMAMN-IN

Downstream logistics optimization at EWOS Norway

The Norwegian company EWOS AS produces fish feed for the salmon farming industry, supplying approximately 300 customers spread along the coast of Norway. The feed is produced at three factory locations and distributed by a fleet of 10 dedicated vessels. The high seasonality of the demand and the large number of customers make the distribution planning a substantial challenge. EWOS handles it by operating a system of mostly fixed routes with decentralized planning at each factory. The distribution can be described as a multi-depot vehicle routing problem with time windows, multiple vehicle usage, inter-depot routes, heterogeneous fleet and a rolling horizon. The paper presents a mathematical model for this problem, which is solved by heuristics and meta heuristics. Based on detailed historical data collected by EWOS during the autumn of 2010, the model has proposed a dynamic set of routes with a significant reduction of travelled distance - close to 30% - and an increase of average vessel fill-rate - from 60% up to 95%. This implies a substantial fuel saving, with a positive environmental impact, and also a potential for downscaling the fleet, with additional considerable cost savings for the company.publishedVersio

CAPACITATED VEHICLE ROUTING PROBLEM WITH TIME WINDOWS FOR MILK COLLECTION AT KPBS PANGALENGAN

This research aims to solve a real-life problem faced by KPBS, a regional dairy company in Pangalengan Village of West Java that collects raw milk from farmers to the location of Milk Treatment. In the considered problem, a daily plan is needed to determine a heterogeneous fleet of vehicles that depart from a depot (the factory) and must visit a set of farmers for collection operations within given time window. This problem is known as the Capacitated Vehicle Routing Problem with Time Windows (CVRPTW) which is one of the classical areas of study in Operations Research. In this study the problem will be solved using heuristic method. Key words: Milk collection, CVRPTW, Operations Research, Heuristi

Centralized versus market-based approaches to mobile task allocation problem: State-of-the-art

Centralized approach has been adopted for finding solutions to resource allocation problems (RAPs) in many real-life applications. On the other hand, market-based approach has been proposed as an alternative to solve the problem due to recent advancement in ICT technologies. In spite of the existence of some efforts to review the pros and cons of each approach in RAPs, the studies cannot be directly applied to specific problem domains like mobile task allocation problem which is characterised with high level of uncertainty on the availability of resources (workers). This paper aims to review existing studies on task allocation problems(TAPs) focusing on those two approaches and their comparison and identify major issues that need to be resolved for comparing the two approaches in mobile task allocation problems. Mobile Task Allocation Problem (MTAP) is defined and its problematic structures are explained in relation with task allocation to mobile workers. Solutions produced by each approach to some applications and variations of MTAP are also discussed and compared. Finally, some future research directions are identified in order to compare both approaches in function of uncertainty emerging from the mobile nature of the MTAP

An integrated model for cash transfer system design problem

This paper presents an integrated model that incorporates strategic, tactical, and operational decisions for a cash transfer management system of a bank. The aim of the model is to decide on the location of cash management centers, number and routes of vehicles, and the cash inventory management policies to minimize the cost of owning and operating a cash transfer system while maintaining a pre-defined service level. Owing to the difficulty of finding optimal decisions in such integrated models, an iterative solution approach is proposed in which strategic, tactical, and operational problems are solved separately via a feedback mechanism. Numerical results show that such an approach is quite effective in reaching greatly improved solutions with just a few iterations, making it a promising approach for similar integrated models

Factory Gate Pricing: An Analysis of the Dutch Retail Distribution

Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation

Dynamic Distributor Routing in Supply Chain Networks with Stochastic Travel Time

Minimizing the distribution time in supply chain networks is critical. By minimizing the total time of distribution in the network we can reduce the cost as well as decrease the product wastage for goods with fast approaching expiration date such as dairy products. In real-world the traveling time in supply chain network is not deterministic most of the time and uncertainties in the form of randomness are not avoidable. For this reason, for finding the optimal path of distributor vehicles in the distribution network that has the lowest travel time, a probabilistic dynamic optimization model has been used in this study and the results of a numerical example are discussed

Two-echelon freight transport optimisation: unifying concepts via a systematic review

Multi-echelon distribution schemes are one of the most common strategies adopted by the transport companies in an aim of cost reduction, but their identification in scientific literature is not always easy due to a lack of unification. This paper presents the main concepts of two-echelon distribution via a systematic review, in the specific a meta-narrative analysis, in order to identify and unify the main concepts, issues and methods that can be helpful for scientists and transport practitioners. The problem of system cost optimisation in two-echelon freight transport systems is defined. Moreover, the main variants are synthetically presented and discussed. Finally, future research directions are proposed