PERFORMANCE ASSESSMENT OF DISTRIBUTED INVENTORY IN PHYSICAL INTERNET

International audienceClassical supply chain design relies on a hierarchical organization to store and distribute products over a given geographical area. Within this framework a shortage in a stock affects the whole downstream of the supply chain regardless of the inventory kept in others locations. Within the Physical Internet approach, inventories are distributed in hubs towards the market and source substitution is allowed. The Physical Internet aims to integrate logistics networks into a universal system of interconnected services through the development of protocols and standards for the routing of smart containers of various sizes. This organization enables a distributed storage of goods in hubs thanks to containerization, thus the feasibility of multi-sourcing to one ordering point. This contribution measures the impact of such an organization on stock levels and inventory costs with service level set as a constraint. The analysis focuses on the resources levels (transportation and inventory) needed by the current supply model and by the Physical Internet in order to serve a market with a (Q,R) stock policy. Starting with two supply models and with the definition of cost models as well as inventory policy, the work is based on computer simulation. The analysis tested 3 different families of criterion in order to select dynamically the source when an order is requested: Source Substitution, Minimum Ratio and Minimum Sum. The source substitution, one of the simplest, was found the more efficient and stable according to different scenarios

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

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?†Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.supply chain;MAS;multi agent systems

A goal programming methodology for multiobjective optimization of distributed energy hubs operation

This paper addresses the problem of optimal energy flow management in multicarrier energy networks in the presence of interconnected energy hubs. The overall problem is here formalized by a nonlinear constrained multiobjective optimization problem and solved by a goal attainment based methodology. The application of this solution approach allows the analyst to identify the optimal operation state of the distributed energy hubs which ensures an effective and reliable operation of the multicarrier energy network in spite of large variations of load demands and energy prices. Simulation results obtained on the 30 bus IEEE test network are presented and discussed in order to demonstrate the significance and the validity of the proposed method

Green Jobs in a Sustainable Food System

The U.S. food sector is among the most productive in the world and is a significant driver of our economy. Yet, it's failing us in major ways -- putting public health, livelihoods and our environment at great risk. Obesity and diabetes rates are rising, communities are plagued by food deserts, and agriculture runoff is the biggest source of pollution in our rivers and lakes.The good news is that communities across the country are addressing this crisis in innovative ways. Through different community-based efforts, local activists and food advocates are finding ways to improve community health and environmental outcomes while creating a more economically equitable food system.It is within this context that this report identifies opportunities to transform jobs in the green economy and enhance environmental and economic equity outcomes in the future. The initial analysis promises opportunities for workers to build long-term skills, and emphasizes the importance of linking local efforts to broader regional and national policy platforms. This multi-level engagement and collaboration will help set in motion the systemic changes needed to create a more sustainable and equitable food system

Integrating bio-hubs in biomass supply chains: Insights from a systematic literature review

Biomass sources are geographically scattered, and seasonal changes influence their availability. Variations in location, type, and feedstock quality impose logistical and storage challenges. Such a dispersion and variety of biomass sources, as well as the dispersion of demand points, may undermine the economies of scale and increase the risk of supply shortage. By consolidating biomass preprocessing and distribution activities in bio-hub facilities, they can contribute to the overall resilience of biomass supply chains (BSCs) and ensure a more sustainable and cost-efficient approach to bioenergy production. As such, investigating the advantages and challenges associated with bio-hub implementation can offer invaluable insights on the efficiency and sustainability of BSCs. Despite its critical role, a major part of the literature on BSCs is confined to the decision-making processes related to biomass suppliers and bioconversion facilities. To bridge this research gap, the current study conducts a systematic literature review on bio-hub implementation within BSCs in the period of the last ten years. Shortlisted papers are classified and analyzed meticulously to extract possible improvements from BSC and modeling perspectives. From the BSC viewpoint, one notable gap is the little attention to mid-term and short-term decisions of bio-hub operations such as inventory control, resource management and production planning. Furthermore, the results revealed that environmental and social aspects of bio-hub implementation require considerable attention. From the modeling perspective, findings illustrate the underutilization of integrated approaches to incorporate micro-level and macro-level information in decision-making. In this regard, a number of areas are suggested for further exploration

The Role of the Food & Beverage Sector in Expanding Economic Opportunity

The food and beverage industry has a unique role in expanding economic opportunity because it is universal to human life and health. The industry operates at multiple levels of society where billions of people grow, transform, and sell food, particularly in developing countries where agriculture dominates all other economic sectors. Yet a vast share of these workers cannot both satisfy their immediate consumption needs and earn sufficient income from food markets to improve their lives. This report applies the results of primary and secondary research to a number of case studies to draw lessons on strategies for expanding economic opportunity in the food & beverage sector. Primary research consisted of telephone interviews and secondary research included a review of reports, studies, and articles from a range of sources for each case study. The result is a paper that provides insight into how pioneering large firms are breaking this dilemma and building economic opportunity around food beverage value chains