A collaborative framework in outbound logistics for the us automakers

The competitive landscape of the U.S. automotive market has transformed from the traditional Big Three players to too many viable players. In 2008-2009, the harsh market conditions, excess production capacity, capital asset redundancies, and many inefficient strategies submerged as the roadblocks for the US automakers to stay competitive and profitable in the North American market. In this new competitive era, cross-company collaboration in product development, standardizing and communizing supply base, sharing flexible manufacturing platforms, using common inbound and out bound logistics service providers and warehousing etc. can play vital roles for the US automakers to reduce overall cost and return to profitability. Through the horizontal collaboration in the outbound logistics operations, these companies can create close-knit business partnership and act faster than the foreign rivals in delivering finished vehicles at the optimum cost. The optimization of outbound logistics operations through consolidation and collaboration among OEMs has tremendous potential to contribute to the profitability by lowering the cost of transportation, in-house inventory, transportation time, and facility costs. The collaboration in the intra- and inter-OEM outbound logistics operations is a critical area that the US automakers need to pay attention and prioritize in their cost reduction initiatives. This research presents an integrated collaboration framework for the outbound logistics operations of the US automakers. In our framework, we propose three potential levels for the US automakers to form outbound logistics collaboration: operational, tactical, and strategic. Our research proposition is to improve the performance of outbound logistics systems of automotive OEMs by means of horizontal collaboration between plants and competing OEMs. The proposed research thus relates to the literature on logistics system design and management and horizontal collaboration in supply chain management. The collaboration framework is demonstrated through a real world case study in US automotive industry. The contribution of this research is the introduction of a framework for intra- and inter-OEM collaboration and the development of novel logistics network design and flow models integrated with inventory models, lost sales, and expedited shipment. Besides the contribution to the academic literature, the proposed collaborative distribution system is a new concept in the automotive industry. Hence, this novel research work will also benefit to the practitioners. Keywords: Operational Collaboration, Tactical Collaboration, Strategic Collaboration, Frequency based Inventory, Customer Patience and Lost Sales, Expedited Shipments

Scheduled service network design with synchronization and transshipment constraints for intermodal container transportation networks

In this paper we address the problem of scheduled service network design for container freight distribution along rivers, canals, and coastlines. We propose a new concise continuous- time mixed-integer linear programming model that accurately evaluates the time of occurrence of transportation events and the number of containers transshipped between vehicles. Given the transportation network, the eet of available vehicles, the demand and the supply of containers, the sailing time of vehicles, and the structure of costs, the objective of the model is to build a minimum cost service network design and container distribution plan that denes services, their departure and arrival times, as well as vehicle and container routing. The model is solved with a commercial solver and is tested on data instances inspired from real-world problems encountered by EU carrier companies. The results of the computational study show that in scheduled service networks direct routes happen more often when either the eet capacity is tight or the handling costs and the lead time interval increase. The increase of the same parameters leads to the decrease of the number of containers transshipped between vehicles

DESIGN OF A MULTI-ECHELON GLOBAL SUPPLY CHAIN NETWORK WITH MICROSOFTå¨ EXCEL PREMIUM SOLVER PLATAFORM

I designed a global supply chain distribution model of one single product, with the objective of minimizing the costs of transportation, handling materials, duties and tariffs, production, and fixed infrastructure. The distribution network has a combination of manufacturing facilities (fixed and to-be-determined), warehouses (to-be-determined), distribution centers (to-be-determined), and customer zones at fixed locations. This network design is similar to the mathematical mixed-integer linear model from Tsiakis, Shah and Pantelides (2001). This model has been implemented in Microsoft Excel, using the Standard Simplex method from Frontline, Inc. This model optimizes the number of facilities worldwide (multi-echelon) along with the flow of materials per transportation node to meet demand of several regions of the world. Any combination of nodes is possible, although the production rate at each manufacturing facility must be able to provide all materials required at each region - no extension is allowed. A supplementary mixed-integer model is provided to address country\u27s economic freedom when selecting global manufacturing sites

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

The design of cement distribution network in Myanmar : a case study of "X" cement industry

The network design problem is one of the most comprehensive strategic decision issues that need to be optimized for the long-term efficient operation of whole supply chain. The problem treated in this thesis is a capacitated location allocation planning of distribution centers for the distribution network design. The distribution network in this research is considered from plants to distribution centers and distribution centers to demand points. The research will explore the optimal number and locations of cement distribution center of “X” cement industry in Myanmar. The Mixed Integer Linear Programming (MILP) was developed as a tool to solve optimization problem which involves 3 manufacturing plants, 6 distribution centers and 6 market regions. The data collection was done by the company. The (MILP) model provides useful information for the Company about which distribution centers should be opened and what would be the best distribution network in order to maximize profit while still satisfies the customers’ demand. In this study, we proposed three scenarios which are scenario two, six and eight. In all scenarios, the solution was to have only two distribution centers from Mandalay and Meikhtila markets are recommended to open in the distribution network

A Two-Echelon Location-inventory Model for a Multi-product Donation-demand Driven Industry

This study involves a joint bi-echelon location inventory model for a donation-demand driven industry in which Distribution Centers (DC) and retailers (R) exist. In this model, we confine the variables of interest to include; coverage radius, service level, and multiple products. Each retailer has two classes of product flowing to and from its assigned DC i.e. surpluses and deliveries. The proposed model determines the number of DCs, DC locations, and assignments of retailers to those DCs so that the total annual cost including: facility location costs, transportation costs, and inventory costs are minimized. Due to the complexity of problem, the proposed model structure allows for the relaxation of complicating terms in the objective function and the use of robust branch-and-bound heuristics to solve the non-linear, integer problem. We solve several numerical example problems and evaluate solution performance

A memetic algorithm for logistics network design problems

Mestrado em Decisão Económica e EmpresarialNeste trabalho, um algoritmo memético é desenvolvido com o intuito de ser aplicado a uma rede logística, com três níveis, múltiplos períodos, seleção do meio de transporte e com recurso a outsourcing. O algoritmo memético pode ser aplicado a uma rede logística existente, no sentido de otimizar a sua configuração ou, se necessário, pode ser utilizado para criar uma rede logística de raiz. A produção pode ser internalizada e é permitido o envio direto de produtos para os clientes. Neste problema, as capacidades das diferentes infraestruturas podem ser expandidas ao longo do período temporal. Caso se trate uma infraestrutura já existente, após uma expansão, já não pode ser encerrada. Sempre que se abre uma nova infraestrutura, a mesma também não pode ser encerrada. A heurística é capaz de determinar o número e localizações das infraestrutura a operar, as capacidades e o fluxo de mercadoria na rede logística.This thesis describes a memetic algorithm applied to the design of a three-echelon logistics network over multiple periods with transportation mode selection and outsourcing. The memetic algorithm can be applied to an existing supply chain in order to obtain an optimized configuration or, if required, it can be used to define a new logistics network. In addition, production can be outsourced and direct shipments of products to customer zones are possible. In this problem, the capacity of an existing or new facility can be expanded over the time horizon. In this case, the facility cannot be closed. Existing facilities, once closed, cannot be reopened. New facilities cannot be closed, once opened. The heuristic is able to determine the number and locations of facilities (i.e. plants and warehouses), capacity levels as well as the flow of products throughout the supply chain

Physical internet-enabled hyperconnected distribution assessment

L'Internet Physique (IP) est une initiative qui identifie plusieurs symptômes d'inefficacité et non-durabilité des systèmes logistiques et les traite en proposant un nouveau paradigme appelé logistique hyperconnectée. Semblable à l'Internet Digital, qui relie des milliers de réseaux d'ordinateurs personnels et locaux, IP permettra de relier les systèmes logistiques fragmentés actuels. Le but principal étant d'améliorer la performance des systèmes logistiques des points de vue économique, environnemental et social. Se concentrant spécifiquement sur les systèmes de distribution, cette thèse remet en question l'ordre de magnitude du gain de performances en exploitant la distribution hyperconnectée habilitée par IP. Elle concerne également la caractérisation de la planification de la distribution hyperconnectée. Pour répondre à la première question, une approche de la recherche exploratoire basée sur la modélisation de l'optimisation est appliquée, où les systèmes de distribution actuels et potentiels sont modélisés. Ensuite, un ensemble d'échantillons d'affaires réalistes sont créé, et leurs performances économique et environnementale sont évaluées en ciblant de multiples performances sociales. Un cadre conceptuel de planification, incluant la modélisation mathématique est proposé pour l’aide à la prise de décision dans des systèmes de distribution hyperconnectée. Partant des résultats obtenus par notre étude, nous avons démontré qu’un gain substantiel peut être obtenu en migrant vers la distribution hyperconnectée. Nous avons également démontré que l'ampleur du gain varie en fonction des caractéristiques des activités et des performances sociales ciblées. Puisque l'Internet physique est un sujet nouveau, le Chapitre 1 présente brièvement l’IP et hyper connectivité. Le Chapitre 2 discute les fondements, l'objectif et la méthodologie de la recherche. Les défis relevés au cours de cette recherche sont décrits et le type de contributions visés est mis en évidence. Le Chapitre 3 présente les modèles d'optimisation. Influencés par les caractéristiques des systèmes de distribution actuels et potentiels, trois modèles fondés sur le système de distribution sont développés. Chapitre 4 traite la caractérisation des échantillons d’affaires ainsi que la modélisation et le calibrage des paramètres employés dans les modèles. Les résultats de la recherche exploratoire sont présentés au Chapitre 5. Le Chapitre 6 décrit le cadre conceptuel de planification de la distribution hyperconnectée. Le chapitre 7 résume le contenu de la thèse et met en évidence les contributions principales. En outre, il identifie les limites de la recherche et les avenues potentielles de recherches futures.The Physical Internet (PI) is an initiative that identifies several symptoms of logistics systems unsustainability and inefficiency and tackles them by proposing a novel paradigm called Hyperconnected Logistics. Similar to the Digital Internet, which connects thousands of personal and local computer networks, PI will connect the fragmented logistics systems of today. The main purpose is to enhance the performance of logistics systems from economic, environmental and social perspectives. Focusing specifically on the distribution system, this thesis questions the order of magnitude of the performance gain by exploiting the PI-enabled hyperconnected distribution. It is also concerned by the characterization of the hyperconnected distribution planning. To address the first question, an exploratory research approach based on optimization modeling is applied; first, the current and prospective distribution systems are modeled. Then, a set of realistic business samples are created, and their economic and environmental performance by targeting multiple social performances are assessed. A conceptual planning framework is proposed to support the decision making in the hyperconnected distribution system. Based on the results obtained by our investigation, it can be argued that a substantial gain can be achieved by shifting toward Hyperconnected Distribution. It is also revealed that the magnitude of the gain varies by business characteristics and the targeted social performance. Since the Physical Internet is a novel topic, chapter 1 briefly introduces PI and Hyperconnected Logistics. Chapter 2 discusses the research foundations, goal and methodology. It also describes the challenges of conducting this research and highlights the type of contributions aimed for. Chapter 3 presents the optimization models including a core distribution network design modeling approach. Influenced by the characteristics of the current and prospective distribution systems, three distribution system-driven models are developed. Chapter 4 engages with the characterization of the business samples, the modeling and calibration of the parameter that are employed in the models. The exploratory investigation results are presented in Chapter 5. Chapter 6 describes the hyperconnected distribution planning framework. Chapter 7 summarizes the content of the thesis and highlights the main contributions. Moreover, it identifies the research limitations and potential future research avenues