An online algorithm for dynamic NFV placement in cloud-based autonomous response networks

Autonomous response networks are becoming a reality thanks to recent advances in cloud computing, Network Function Virtualization (NFV) and Software-Defined Networking (SDN) technologies. These enhanced networks fully enable autonomous real-time management of virtualized infrastructures. In this context, one of the major challenges is how virtualized network resources can be effectively placed. Although this issue has been addressed before in cloud-based environments, it is not yet completely resolved for the online placement of virtual machines. For such a purpose, this paper proposes an online heuristic algorithm called Topology-Aware Placement of Virtual Network Functions (TAP-VNF) as a low-complexity solution for such dynamic infrastructures. As a complement, we provide a general formulation of the network function placement using the service function chaining concept. Furthermore, two metrics called consolidation and aggregation validate the efficiency of the proposal in the experimental simulations. We have compared our approach with optimal solutions, in terms of consolidation and aggregation ratios, showing a more suitable performance for dynamic cloud-based environments. The obtained results show that TAP-VNF also outperforms existing approaches based on traditional bin packing schemes.Postprint (published version

Dynamics of Inventory Cost Optimization – A Review of Theory and Evidence

The inventory control models as an estimation tool for optimizing inventory cost and management of inventory is discussed in this paper. Various methods of estimating the Economic Order Quantity (EOQ), Safety Stocks under deterministic and stochastic situations are reviewed. Traditional methods of managing inventory such as accounting ratios analysis, two bin systems, perpetual inventory system and some others form part of this paper. Ratings of inventory or its classification in order of priority by unit and consumption value are also reviewed in the paper. Empirical evidence reviewed in this work tends to support the opinion that modern method of inventory control is far more effective and efficient than the traditional methods of control. Keywords: Inventory Control Models, Inventory Ratios, Economic Order Quantity

Online fulfillment: f-warehouse order consolidation and bops store picking problems

Fulfillment of online retail orders is a critical challenge for retailers since the legacy infrastructure and control methods are ill suited for online retail. The primary performance goal of online fulfillment is speed or fast fulfillment, requiring received orders to be shipped or ready for pickup within a few hours. Several novel numerical problems characterize fast fulfillment operations and this research solves two such problems. Order fulfillment warehouses (F-Warehouses) are a critical component of the physical internet behind online retail supply chains. Two key distinguishing features of an F-Warehouse are (i) Explosive Storage Policy – A unique item can be stored simultaneously in multiple bin locations dispersed through the warehouse, and (ii) Commingled Bins – A bin can stock several different items simultaneously. The inventory dispersion profile of an item is therefore temporal and non-repetitive. The order arrival process is continuous, and each order consists of one or more items. From the set of pending orders, efficient picking lists of 10-15 items are generated. A picklist of items is collected in a tote, which is then transported to a packaging station, where items belonging to the same order are consolidated into a shipment package. There are multiple such stations. This research formulates and solves the order consolidation problem. At any time, a batch of totes are to be processed through several available order packaging stations. Tote assignment to a station will determine whether an order will be shipped in a single package or multiple packages. Reduced shipping costs are a key operational goal of an online retailer, and the number of packages is a determining factor. The decision variable is which station a tote should be assigned to, and the performance objective is to minimize the number of packages and balance the packaging station workload. This research first formulates the order consolidation problem as a mixed integer programming model, and then develops two fast heuristics (#1 and #2) plus two clustering algorithm derived solutions. For small problems, the heuristic #2 is on average within 4.1% of the optimal solution. For larger problems heuristic #2 outperforms all other algorithms. Performance behavior of heuristic #2 is further studied as a function of several characteristics. S-Strategy fulfillment is a store-based solution for fulfilling online customer orders. The S-Strategy is driven by two key motivations, first, retailers have a network of stores where the inventory is already dispersed, and second, the expectation is that forward positioned inventory could be faster and more economical than a warehouse based F-Strategy. Orders are picked from store inventory and then the customer picks up from the store (BOPS). A BOPS store has two distinguishing features (i) In addition to shelf stock, the layout includes a space constrained back stock of selected items, and (ii) a set of dedicated pickers who are scheduled to fulfill orders. This research solves two BOFS related problems: (i) Back stock strategy: Assignment of items located in the back stock and (ii) Picker scheduling: Effect of numbers of picker and work hours. A continuous flow of incoming orders is assumed for both problems and the objective is fulfillment time and labor cost minimization. For the back-stock problem an assignment rule based on order frequency, forward location and order basket correlations achieves a 17.6% improvement over a no back-stock store, while a rule based only on order frequency achieves a 12.4 % improvement. Additional experiments across a range of order baskets are reported

Expanding the Horizons of Manufacturing: Towards Wide Integration, Smart Systems and Tools

This research topic aims at enterprise-wide modeling and optimization (EWMO) through the development and application of integrated modeling, simulation and optimization methodologies, and computer-aided tools for reliable and sustainable improvement opportunities within the entire manufacturing network (raw materials, production plants, distribution, retailers, and customers) and its components. This integrated approach incorporates information from the local primary control and supervisory modules into the scheduling/planning formulation. That makes it possible to dynamically react to incidents that occur in the network components at the appropriate decision-making level, requiring fewer resources, emitting less waste, and allowing for better responsiveness in changing market requirements and operational variations, reducing cost, waste, energy consumption and environmental impact, and increasing the benefits. More recently, the exploitation of new technology integration, such as through semantic models in formal knowledge models, allows for the capture and utilization of domain knowledge, human knowledge, and expert knowledge toward comprehensive intelligent management. Otherwise, the development of advanced technologies and tools, such as cyber-physical systems, the Internet of Things, the Industrial Internet of Things, Artificial Intelligence, Big Data, Cloud Computing, Blockchain, etc., have captured the attention of manufacturing enterprises toward intelligent manufacturing systems