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

Introduction to Supply Chain and Operations Management – A Real World Perspective

This project was funded by KU Libraries’ Parent’s Campaign with support from the David Shulenburger Office of Scholarly Communication & Copyright and the Open Educational Resources Working Group in the University of Kansas Libraries.This textbook looks at operations management and supply chain management from a real world perspective. The foundations of operations and supply chain are presented in a format that builds upon the theories found in most operations management texts but looks at the applications of the principles through the lens of experience and practice using examples from over 40 years as a practitioner, strategic planner and consultant. The goal of the textbook is to supplement lectures and discussions about operations and supply chain management while linking the topics to other disciplines within a business environment. The topics are grouped based on the Supply Chain Council’s Supply Chain Operations Reference Model core functions.University of Kansas Librarie

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications

An Adaptive Simulation-based Decision-Making Framework for Small and Medium sized Enterprises

Abstract The rapid development of key mobile technology supporting the ‘Internet of Things’, such as 3G, Radio Frequency Identification (RFID), and Zigbee etc. and the advanced decision making methods have improved the Decision-Making System (DMS) significantly in the last decade. Advanced wireless technology can provide a real-time data collection to support DMS and the effective decision making techniques based on the real-time data can improve Supply Chain (SC) efficiency. However, it is difficult for Small and Medium sized Enterprises (SMEs) to effectively adopt this technology because of the complexity of technology and methods, and the limited resources of SMEs. Consequently, a suitable DMS which can support effective decision making is required in the operation of SMEs in SCs. This thesis conducts research on developing an adaptive simulation-based DMS for SMEs in the manufacturing sector. This research is to help and support SMEs to improve their competitiveness by reducing costs, and reacting responsively, rapidly and effectively to the demands of customers. An adaptive developed framework is able to answer flexible ‘what-if’ questions by finding, optimising and comparing solutions under the different scenarios for supporting SME-managers to make efficient and effective decisions and more customer-driven enterprises. The proposed framework consists of simulation blocks separated by data filter and convert layers. A simulation block may include cell simulators, optimisation blocks, and databases. A cell simulator is able to provide an initial solution under a special scenario. An optimisation block is able to output a group of optimum solutions based on the initial solution for decision makers. A two-phase optimisation algorithm integrated Conflicted Key Points Optimisation (CKPO) and Dispatching Optimisation Algorithm (DOA) is proposed for the condition of Jm|STsi,b with Lot-Streaming (LS). The feature of the integrated optimisation algorithm is demonstrated using a UK-based manufacture case study. Each simulation block is a relatively independent unit separated by the relevant data layers. Thus SMEs are able to design their simulation blocks according to their requirements and constraints, such as small budgets, limited professional staff, etc. A simulation block can communicate to the relative simulation block by the relevant data filter and convert layers and this constructs a communication and information network to support DMSs of Supply Chains (SCs). Two case studies have been conducted to validate the proposed simulation framework. An SME which produces gifts in a SC is adopted to validate the Make To Stock (MTS) production strategy by a developed stock-driven simulation-based DMS. A schedule-driven simulation-based DMS is implemented for a UK-based manufacturing case study using the Make To Order (MTO) production strategy. The two simulation-based DMSs are able to provide various data to support management decision making depending on different scenarios

Understanding the Value of Travel Time Reliability for Freight Transportation to Support Freight Planning

Today’s logistics practices are moving from inventory-based push supply chains to replenishment-based pull supply chains, leading to a lower and less centralized inventory, smaller shipment sizes, and more just-in-time deliveries. As a result, industries are now demanding greater reliability in freight transportation. Delays and uncertainty in freight transportation translate directly into additional inventory, higher manufacturing costs, less economic competitiveness for businesses, and higher costs of goods that are being passed on to the consumers. Given the growing demand in freight transportation, the emerging needs to better understand freight behavior for better policy and investment decisions, and the increasing role of reliability in freight transportation, this research aims at providing a) better understanding of how the freight system users value travel time reliability in their transportation decisions, and b) advanced methods in quantifying the user’s willingness to pay for the improvement of transportation related attributes, particularly travel time reliability. To understand how the freight industry values travel time reliability in their transportation decisions, and particularly the presence of user heterogeneity, this research designed and conducted a stated preference (SP) survey for freight users in road transportation. Based on the feedback received during the pilot stage, reliability was measured as the standard deviation of travel time and presented as a frequency of on-time and late delivery in the choice scenarios. The survey collected 1,226 responses from 159 firms in Florida between January and May 2016 via online and paper methods. Various modeling approaches were explored to estimate the willingness to pay (WTP) measures among freight users, including multinomial logit (MNL) and mixed logit model. Market segmentation and interaction modeling techniques were employed to investigate preference variations among user groups, commodity groups, product type, and various other shipment characteristics, including shipping distance and weight. In general, across all groups in the sample, values of $37.00 per shipment-hour ($1.53 per ton-hour) for travel time savings and $55.00 per shipment-hour ($3.81 per ton- hour) for improvements of reliability were found in this research. Furthermore, while investigating the effects of shipping characteristics on the user’s preference in WTP, the results suggested that shipping distance and weight were the two most important variables. The results of the study help advance the understanding of the impact of the performance of transportation systems on freight transportation, which will lead to policy and investment decisions that better serve the needs of the freight community

Service Inventory Management : Solution techniques for inventory systems without backorders

Koole, G.M. [Promotor]Vis, I.F.A. [Copromotor