Multiobjective optimization as a decision aid for managing build-to-order supply chains

This paper provides an overview of multiobjective optimization (MOO) as a decision aid in build-to-order supply chains (BTO-SC). The main features of BTO-SCs are discussed along with capabilities of MOO to enhance decision making at different points along the chain. Key decision points across a typical BTO-SC are identified and potential applications of MOO are discussed. A sample application is presented and future avenues for further research highlighted

Optimization of the Crude Palm Oil Supply Chain Using a Mixed Integer Linear Programming Model

The Crude Palm Oil (CPO) industry is a significant industry with a well-established network system, also known as a supply chain. The CPO industry is involved in the production, processing, and distribution of palm oil, which is derived from the fruit of the oil palm tree. In this paper it is considered that the CPO mill industry does not have its own oil palm plantations, so FFB (fresh fruit bunches) are supplied by nearby smallholder oil palm plantations, both private and government. Because the supply of FFB is limited, management must decide which plantations will meet the demand, therefore the Crude Palm Oil industry operates through a more complex network system. This paper addresses a discrete optimization model that is expected to be a useful planning for the Crude Palm Oil (CPO) industry incorporating selecting the oil palm plantation. An improved feasible neighborhood search approach is proposed to solve problems

Production batch sizing and inventory level control using simulation software

Computer simulation has great application potential in the area of Production Engineering as a tool to support decision making as it allows to simulate the functioning of a real system through logical relationships, in order to observe its behavior under different scenarios. Which could not be practiced in the real system. In line with this aspect, the present work aims to present a report on the application of simulation for the design of production batches and inventory control, highlighting the process necessary for the construction of the generated simulation model, as well as the challenges and opportunities observed. In order to achieve the proposed objective, a literature review was carried out on the topics of interest; the choice and understanding of simulation software and; the survey of data from a large auto parts manufacturer located in the interior of the state of São Paulo. The main results were an increase in production volume from the inclusion and dimensioning of a buffer after the assembly process and a balance between the number of items of each component of the product structure in the supply with the real capacity of manufacturing cell processing. Cabe ressaltar que o modelo de simulação produto da pesquisa deste artigo pode ser aplicado como um sistema de apoio à decisão do gestor para a elaboração do planejamento estratégico e do planejamento operacional com o propósito de melhorar a capacidade de análise e decisão. It is important mentioning that the simulation model in this article can be applied as a support system decision for the preparation of strategic planning and operational planning, with the purpose of improving the analysis capacity for decision-making

Cooperative production networks - multiagent modeling and planning

Consumer goods are mainly produced in multiple steps through a long process. These steps are often done by separate, independent production nodes (enterprises), linked by supply chains. The networks of enterprises — where members have their own objectives and act in an autonomous, rational way to reach their goals — can be naturally modeled by agent-based methodology. The inner structure of each enterprise is similar in the sense that it contains separated planning functions (e.g., production-, inventory-, capacity planning). While the operation inside an enterprise can be controlled centrally, the interaction between the nodes could be synchronized only by negotiation and coordination. Coordination can be based on protocols which regulate information, material and financial flows alike. In this paper we expose an agent-based organizational model of production networks and suggest some planning algorithms which can handle the uncertainty of demand. In addition, we outline the first results of our ongoing research, an analysis of the asymmetric information case and an appropriate coordination mechanism

A Literature Review for Identification of Performance Measures for Establishing a Framework for Performance Measurement in Supply Chains

Supply Chain Management (SCM) has gained significance as one of the 21st century manufacturing paradigms for improving organizational competitiveness. Supply chain ensures improved efficiency and effectiveness of not only product transfer, but also information sharing between the complex hierarchies of all the tiers. The literature on SCM that deals with strategies and technologies for effectively managing a supply chain is quite vast. In recent years, organizational performance measurement (PM) and metrics have received much attention from researchers and practitioners. Performance measurement and metrics have an important role to play in setting objectives, evaluating performance, and determining future courses of actions. Performance measurement and metrics pertaining to SCM have not received adequate attention from researchers or practitioners. There is no systematic grouping of the different performance measures in the existing literature. The development of a framework for PM in supply chains requires generalised performance measures. This paper seeks to provide an extensive literature review for identification of performance measures, which in turn forms a basis for establishing a framework for performance measurements in supply chains

Modelling inventory management: Separate issues for construction and application

[EN] The model of inventory management on the basis of which the calculations of the efficiency of the use of inventories, minimizing the total costs associated with their delivery, storage and fines for lack of stocks in the presence of demand for them have been made and presented in the article. Using it in practice will allow managing the logistics and warehouse costs, the risk of not receiving or reducing the company's profits due to the excess costs and the efficiency of turnover of inventories. The proposed model takes into account the depending on the price of shipment from the supplier to the warehouse, the cost of holding stocks, the cost of holding the stocks, the amount of storage costs and penalties for non-shipped products. It is proved that rationally organized order in stock management allows companies to calculate the order quantity, its optimal size and time interval between orders taking into account the prospect of delay in supply, to plan the amount of profit, to organize the accounting of the profitable level of stocks, to determine the sizes of the highest and guarantee level of the stock. Approbation of the developed model was carried out on the basis of the data of the woodworking enterprise. We used elements of the Data Mining Results technology – the MARSPline module in the application package Statistica to achieve the goals. This made it possible to construct a regression model in multidimensional space and spline surfaces through the main functions.Luchko, M.; Lukanovska, I.; Ratynsky, V. (2019). Modelling inventory management: Separate issues for construction and application. International Journal of Production Management and Engineering. 7(2):117-124. https://doi.org/10.4995/ijpme.2019.11435SWORD1171247

The application of discrete event simulation and system dynamics in the logistics and supply chain context

Discrete event simulation (DES) and system dynamics (SD) are two modelling approaches widely used as decision support tools in logistics and supply chain management (LSCM). A widely held belief exists that SD is mostly used to model problems at a strategic level, whereas DES is used at an operational/tactical level. This paper explores the application of DES and SD as decision support systems (DSS) for LSCM by looking at the nature and level of issues modelled. Peer reviewed journal papers that use these modelling approaches to study supply chains, published between 1996 and 2006 are reviewed. A total of 127 journal articles are analysed to identify the frequency with which the two simulation approaches are used as modelling tools for DSS in LSCM. Our findings suggest that DES has been used more frequently to model supply chains, with the exception of the bullwhip effect, which is mostly modelled using SD. Based on the most commonly used modelling approach, issues in LSCM are categorised into four groups: the DES domain, the SD domain, the common domain and the less common domain. The study furthermore suggests that in terms of the level of decision making involved, strategic or operational/tactical, there is no difference in the use of either DES or SD. The results of this study inform the existing literature about the use of DES and SD as DSS tools in LSCM

Impacts of a High-Capacity Truck Transportation System on the Economy and Traffic Intensity of Pulpwood Supply in Southeast Finland

High-capacity transportation (HCT) of roundwood is a road transport concept that is currently being demonstrated in Finland and Sweden. In Finland, HCT trucks are in most cases unable to access roadside storages, but they are expected to bring cost savings in highway transportation between transshipment terminals and mill yards. Evaluating the optimal solutions is challenging due to the complexity of the transportation systems. This paper presents a dynamic simulation model, SimPulp, which was developed to generate information about the impacts of substituting HCT for a part of the present pulpwood transportation system. A case study in the area of the most intensive pulpwood use in Finland was conducted. The results indicate that HCT has potential for reducing transport costs and especially the traffic intensity of roundwood procurement in the studied area. The economic advantages of pulpwood HCT could be more significant in a larger area or in the use of inter-terminal backhauling