Chemical industry supply chain optimisation using agent-based modelling

In this paper we present an application of Supply Chain Spread Sheet Simulator (SCSS) in a task dealing with chemical industry supply chain redesign and optimisation. SCSS uses principles of Agent-Based Modelling combining 4 types of agents with 3 algorithms to control their behaviour. Location Algorithm is used to place the logistics objects satisfying the demand of customers, Clarke&Wright's Savings Algorithm is applied to plan the routes and Past Stock Movement Simulation is used to control the stock levels. SCSS is developed in MS Excel using programming language Visual Basic for Applications. Its basic functionality is discussed simulating a real task dealing with the redesign of the distribution system for goods coming from chemical industry in the Czech Republic. We test 6 different structures of the distribution system differing in number of located logistics objects ranging from 1 to 6. Based on the outputs of SCSS recalculated to distribution costs we suggest decreasing the number of located warehouses from 6 to 1 estimating almost 33 % distribution costs savings per year

Approaching delivery as a service

This paper explores the new logistics business model of Delivery as a Service, a concept aiming at a more efficient, fast and customer-oriented practice, linking IT solution development, urban logistics operations, supply chain efficiency and new business models. Delivery as a Service (DaaS) is defined as a service-oriented delivery and business processes in line with customer expectations and needs in the on-demand economy. The approach of this paper is an industry report based on evidence collected in multiple exploratory European projects integrating ambitious and strategic findings on Internet of Things, urban planning, consolidation centres, transport optimisation, and clean vehicle use. It contributes to a future scenario of urban logistics business models

Multi-objective stochastic simulation-based optimisation applied to supply chain planning

The paper discusses the optimisation of complex management processes, which allows the reduction of investment costs by setting the optimal balance between product demand and supply. The systematisation of existing methods and algorithms that are used to optimise complex processes by linking stochastic discrete-event simulation and multi-objective optimisation is given. The two-phase optimisation method is developed based on hybrid combination of compromise programming, evolutionary computation and response surface-based methods. Approbation of the proposed method is performed on the multi-echelon supply chain planning problem that is widely distributed in industry and its solution plays a vital role in increasing the competitiveness of a company. Three scenarios are implemented to optimise supply chain tactical planning processes at the chemical manufacturing company based on using different optimisation methods and software. The numerical results prove the competitive advantages of the developed two-phase optimisation method

A Modelling Framework for Optimising Investment for the Australian Livestock Industry

Despite the scale and importance of the beef industry in the north of Australia, recent political and environmental disruptions have highlighted the vulnerability of the supply chain. Ensuring that the supply chain remains resilient to climatic events as well as to unexpected decisions by the stakeholders will require careful planning and investment in logistics. In this paper, we outline an integrated methodology based on tactical and operational dynamic models, for assessing the effect of changes in the supply chain. Emphasis is on the development of an optimisation model that covers the ow of cattle from properties to agistment farms and feedlots to abattoirs/ports, and the selection of rest areas (spelling yards) along the path. The model selects the optimal location of spelling yards along the road network, subject to budget, site capacity, and service requirements. We show preliminary results for a case study comprising Western Australia and the Northern Territory.Sociedad Argentina de Informática e Investigación Operativ

A Modelling Framework for Optimising Investment for the Australian Livestock Industry

Despite the scale and importance of the beef industry in the north of Australia, recent political and environmental disruptions have highlighted the vulnerability of the supply chain. Ensuring that the supply chain remains resilient to climatic events as well as to unexpected decisions by the stakeholders will require careful planning and investment in logistics. In this paper, we outline an integrated methodology based on tactical and operational dynamic models, for assessing the effect of changes in the supply chain. Emphasis is on the development of an optimisation model that covers the ow of cattle from properties to agistment farms and feedlots to abattoirs/ports, and the selection of rest areas (spelling yards) along the path. The model selects the optimal location of spelling yards along the road network, subject to budget, site capacity, and service requirements. We show preliminary results for a case study comprising Western Australia and the Northern Territory.Sociedad Argentina de Informática e Investigación Operativ

A Modelling Framework for Optimising Investment for the Australian Livestock Industry

Despite the scale and importance of the beef industry in the north of Australia, recent political and environmental disruptions have highlighted the vulnerability of the supply chain. Ensuring that the supply chain remains resilient to climatic events as well as to unexpected decisions by the stakeholders will require careful planning and investment in logistics. In this paper, we outline an integrated methodology based on tactical and operational dynamic models, for assessing the effect of changes in the supply chain. Emphasis is on the development of an optimisation model that covers the ow of cattle from properties to agistment farms and feedlots to abattoirs/ports, and the selection of rest areas (spelling yards) along the path. The model selects the optimal location of spelling yards along the road network, subject to budget, site capacity, and service requirements. We show preliminary results for a case study comprising Western Australia and the Northern Territory.Sociedad Argentina de Informática e Investigación Operativ

Eco-efficient supply chain networks: Development of a design framework and application to a real case study

© 2015 Taylor & Francis. This paper presents a supply chain network design framework that is based on multi-objective mathematical programming and that can identify 'eco-efficient' configuration alternatives that are both efficient and ecologically sound. This work is original in that it encompasses the environmental impact of both transportation and warehousing activities. We apply the proposed framework to a real-life case study (i.e. Lindt & Sprüngli) for the distribution of chocolate products. The results show that cost-driven network optimisation may lead to beneficial effects for the environment and that a minor increase in distribution costs can be offset by a major improvement in environmental performance. This paper contributes to the body of knowledge on eco-efficient supply chain design and closes the missing link between model-based methods and empirical applied research. It also generates insights into the growing debate on the trade-off between the economic and environmental performance of supply chains, supporting organisations in the eco-efficient configuration of their supply chains

Improved resource efficiency and cascading utilisation of renewable materials

In light of various environmental problems and challenges concerning resource allocation, the utilisation of renewable resources is increasingly important for the efficient use of raw materials. Therefore, cascading utilisation (i.e., the multiple material utilisations of renewable resources prior to their conversion into energy) and approaches that aim to further increase resource efficiency (e.g., the utilisation of by-products) can be considered guiding principles. This paper therefore introduces the Special Volume “Improved Resource Efficiency and Cascading Utilisation of Renewable Materials”. Because both research aspects, resource efficiency and cascading utilisation, belong to several disciplines, the Special Volume adopts an interdisciplinary perspective and presents 16 articles, which can be divided into four subjects: Innovative Materials based on Renewable Resources and their Impact on Sustainability and Resource Efficiency, Quantitative Models for the Integrated Optimisation of Production and Distribution in Networks for Renewable Resources, Information Technology-based Collaboration in Value Generating Networks for Renewable Resources, and Consumer Behaviour towards Eco-friendly Products. The interdisciplinary perspective allows a comprehensive overview of current research on resource efficiency, which is supplemented with 15 book reviews showing the extent to which textbooks of selected disciplines already refer to resource efficiency. This introductory article highlights the relevance of the four subjects, presents summaries of all papers, and discusses future research directions. The overall contribution of the Special Volume is that it bridges the resource efficiency research of selected disciplines and that it presents several approaches for more environmentally sound production and consumption

Modelling an End to End Supply Chain system Using Simulation

Within the current uncertain environment industries are predominantly faced with various challenges resulting in greater need for skilled management and adequate technique as well as tools to manage Supply Chains (SC) efficiently. Derived from this observation is the need to develop a generic/reusable modelling framework that would allow firms to analyse their operational performance over time (Mackulak and Lawrence 1998, Beamon and Chen 2001, Petrovic 2001, Lau et al. 2008, Khilwani et al. 2011, Cigollini et al. 2014). However for this to be effectively managed the simulation modelling efforts should be directed towards identifying the scope of the SC and the key processes performed between players. Purpose: The research attempts to analyse trends in the field of supply chain modelling using simulation and provide directions for future research by reviewing existing Operations Research/Operations Management (OR/OM) literature. Structural and operational complexities as well as different business processes within various industries are often limiting factors during modelling efforts. Successively, this calls for the end to end (E2E) SC modelling framework where the generic processes, related policies and techniques could be captured and supported by the powerful capabilities of simulation. Research Approach: Following Mitroff’s (1974) scientific inquiry model and Sargent (2011) this research will adopt simulation methodology and focus on systematic literature review in order to establish generic OR processes and differentiate them from those which are specific to certain industries. The aim of the research is provide a clear and informed overview of the existing literature in the area of supply chain simulation. Therefore through a profound examination of the selected studies a conceptual model will be design based on the selection of the most commonly used SC Processes and simulation techniques used within those processes. The description of individual elements that make up SC processes (Hermann and Pundoor 2006) will be defined using building blocks, which are also known as Process Categories. Findings and Originality: This paper presents an E2E SC simulation conceptual model realised through means of systematic literature review. Practitioners have adopted the term E2E SC while this is not extensively featured within academic literature. The existing SC studies lack generality in regards to capturing the entire SC within one methodological framework, which this study aims to address. Research Impact: A systematic review of the supply chain and simulation literature takes an integrated and holistic assessment of an E2E SC, from market-demand scenarios through order management and planning processes, and on to manufacturing and physical distribution. Thus by providing significant advances in understanding of the theory, methods used and applicability of supply chain simulation, this paper will further develop a body of knowledge within this subject area. Practical Impact: The paper will empower practitioners’ knowledge and understanding of the supply chain processes characteristics that can be modelled using simulation. Moreover it will facilitate a selection of specific data required for the simulation in accordance to the individual needs of the industry

Trading reliability targets within a supply chain using Shapley's value

The development of complex systems involves a multi-tier supply chain, with each organisation allocated a reliability target for their sub-system or component part apportioned from system requirements. Agreements about targets are made early in the system lifecycle when considerable uncertainty exists about the design detail and potential failure modes. Hence resources required to achieve reliability are unpredictable. Some types of contracts provide incentives for organisations to negotiate targets so that system reliability requirements are met, but at minimum cost to the supply chain. This paper proposes a mechanism for deriving a fair price for trading reliability targets between suppliers using information gained about potential failure modes through development and the costs of activities required to generate such information. The approach is based upon Shapley's value and is illustrated through examples for a particular reliability growth model, and associated empirical cost model, developed for problems motivated by the aerospace industry. The paper aims to demonstrate the feasibility of the method and discuss how it could be extended to other reliability allocation models