Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

A lot-sizing model for a multi-state system with deteriorating items, variable production rate, and imperfect quality

Conventional production systems assume that during the manufacturing processes, machines operate without breakdown over an infinite planning horizon and manufacture only products of good quality. Imperfect production processes as a result of machine degradation are common in manufacturing. This paper deals with a problem that concerns the modelling and evaluation of the performance of a multi-state production system that is subject to degradation and its effect on lot sizing. Here, we consider that the cycle starts with a particular production rate until a point when the inventory reaches a certain level after which the failure mode is activated due to the deterioration of certain components, leading to a reduction in the production rate in order to ensure the continuity of supply until the maximum inventory level is reached. Production then stops to restore the machine and the cycle starts again. We have assumed that the rate at which inventory deteriorates is exponential and that demand is constant. A numerical example is used to illustrate the model application, followed by sensitivity analysis. This paper contributes to lot sizing in the area of machine reliability by considering a production system in a degraded state with a non-increasing production rate for deteriorating items with imperfect quality and partial backlogging.http://www.ijmems.inhj2023Industrial and Systems Engineerin

Responsible Inventory Models for Operation and Logistics Management

The industrialization and the subsequent economic development occurred in the last century have led industrialized societies to pursue increasingly higher economic and financial goals, laying temporarily aside the safeguard of the environment and the defense of human health. However, over the last decade, modern societies have begun to reconsider the importance of social and environmental issues nearby the economic and financial goals. In the real industrial environment as well as in today research activities, new concepts have been introduced, such as sustainable development (SD), green supply chain and ergonomics of the workplace. The notion of “triple bottom line” (3BL) accounting has become increasingly important in industrial management over the last few years (Norman and MacDonald, 2004). The main idea behind the 3BL paradigm is that companies’ ultimate success should not be measured only by the traditional financial results, but also by their ethical and environmental performances. Social and environmental responsibility is essential because a healthy society cannot be achieved and maintained if the population is in poor health. The increasing interest in sustainable development spurs companies and researchers to treat operations management and logistics decisions as a whole by integrating economic, environmental, and social goals (Bouchery et al., 2012). Because of the wideness of the field under consideration, this Ph.D. thesis focuses on a restricted selection of topics, that is Inventory Management and in particular the Lot Sizing problem. The lot sizing problem is undoubtedly one of the most traditional operations management interests, so much so that the first research about lot sizing has been faced more than one century ago (Harris, 1913). The main objectives of this thesis are listed below: 1) The study and the detailed analysis of the existing literature concerning Inventory Management and Lot Sizing, supporting the management of production and logistics activities. In particular, this thesis aims to highlight the different factors and decision-making approaches behind the existing models in the literature. Moreover, it develops a conceptual framework identifying the associated sub-problems, the decision variables and the sources of sustainable achievement in the logistics decisions. The last part of the literature analysis outlines the requirements for future researches. 2) The development of new computational models supporting the Inventory Management and Sustainable Lot Sizing. As a result, an integrated methodological procedure has been developed by making a complete mathematical modeling of the Sustainable Lot Sizing problem. Such a method has been properly validated with data derived from real cases. 3) Understanding and applying the multi-objective optimization techniques, in order to analyze the economic, environmental and social impacts derived from choices concerning the supply, transport and management of incoming materials to a production system. 4) The analysis of the feasibility and convenience of governmental systems of incentives to promote the reduction of emissions owing to the procurement and storage of purchasing materials. A new method based on the multi-objective theory is presented by applying the models developed and by conducting a sensitivity analysis. This method is able to quantify the effectiveness of carbon reduction incentives on varying the input parameters of the problem. 5) Extending the method developed in the first part of the research for the “Single-buyer” case in a "multi-buyer" optics, by introducing the possibility of Horizontal Cooperation. A kind of cooperation among companies in different stages of the purchasing and transportation of raw materials and components on a global scale is the Haulage Sharing approach which is here taken into consideration in depth. This research was supported by a fruitful collaboration with Prof. Robert W. Grubbström (University of Linkoping, Sweden) and its aim has been from the beginning to make a breakthrough both in the theoretical basis concerning sustainable Lot Sizing, and in the subsequent practical application in today industrial contexts

An economic order quantity model for imperfect and deteriorating items with freshness and inventory level-dependent demand

Dissertation (MEng (Industrial Engineering))--University of Pretoria, 2023.Consumer purchasing behaviour is influenced by many factors. Depending on the circumstances, these factors may become relevant drivers of important supply chain decisions. Expiration dates have an influence on the purchasing decision of consumers for perishable goods. Another behavioural influence that stimulates demand is the volume of goods that are available on display as part of the purchase transaction. Furthermore, the fact that certain goods deteriorate over time must also be evaluated within the context of the study of perishable goods. The market is increasingly seeking goods that have no inherent defects or imperfections. This investigation seeks to determine the impact of imperfect quality, deterioration, freshness and inventory level and also, how those issues can be improved upon in workable situations. This paper proposes an inventory model that stipulates the demand as a function of freshness and the inventory level. In addition, the inventory depletes through both deterioration and demand, and the product quality is not always perfect. The objective of the inventory model is to maximise the system’s profit, hence the study has developed a theoretical mathematical model for imperfect and deteriorating items with freshness and inventory level-dependent demand. A numerical example was used to illustrate the practical application of the model in a real life environment. Sensitivity studies were conducted to determine the impact of changes or variations to the inputs that are used in the model. The findings were that the date of expiry, the elasticity of demand and the selling price of the perfect products are the main constituents that affect the profitability.Industrial and Systems EngineeringMEng (Industrial Engineering)Unrestricte

Production and Warranty Optimal Period in Deteriorating Production Systems by Considering Inspection of both Manufacturing Equipment and Products Simultaneously

Traditionally high share of production-distribution costs to inventory and supply policy dedicated. The production model of politics is important for a system of distribution, taking into account the actual conditions of production and optimal production parameters influenced. One of these conditions is that the production equipment during production turned out of control and produce defective products. It is possible to change the mode in real terms, and then significantly increase the amount of defective products. Despite these conditions, one of the parameters affecting the demand for products and sales, and consequently the amount of corporate profits is the product warranty. The after-sales service product parameter influencing the willingness of consumers to buy the product. In this work, it consider the potential failure of production equipment, as well as the product warranty, mathematical models of inventory control policy, based on actual production conditions for the production units. This model is aimed at achieving the optimal length of time in each period and for optimum product warranty with respect to maximizing profits per unit of time. In other words, the goal is create an optimal balance between product sales revenue and costs incurred during the period of warranty for the product. In fact, in this article will discuss this model and its resolution