Investigating the Integration of Industry 4.0 and Lean Principles on Supply Chain: A Multi-Perspective Systematic Literature Review

The development of digital technologies in all aspects of human life leads to increasing the necessity for investigating them in the Supply Chain (SC) as the main channel to provide products. Moreover, Lean principles, with the aim of reducing wastes, could be one of the main research streams in SC in recent years. Therefore, it is valuable to figure out the mutual effects of Lean principles and digital technologies as two growing areas in SC. Previous works did not pay attention to investigating this relationship at the SC level and were more focused on the production level. However, the present work addresses this issue by conducting a multi-perspective Systematic Literature Review (SLR). Additionally, in the present SLR, the impact of individual Industry 4.0 technologies in relation to Lean principles was investigated from various SC perspectives. The results reveal the necessity of studying single SC processes in Lean Digital SC. Moreover, the applicability of each technology should be illustrated to alleviate SC operational and organizational issues. The results provide useful insights about applying single digital technologies as well as a combination of them to each SC process to solve specific issues

Lithium-ion battery procurement strategies: Evidence from the automotive field

Electric and hybrid vehicle diffusion is nowadays promising but still limited, also due to the high costs of key components such as lithium-ion batteries (LIBs). A significant contribution to these relevant economic values is given by not optimized supply chain structures. Therefore, car manufacturers approaching electrification are considering different strategies to either purchase complete LIBs or producing them in-house. However, literature lacks quantitative studies assessing the logistics implications of LIB procurement policies in the automotive sector. The present work proposes a decision-making approach leveraging the main logistics and environmental issues involved in both internally producing and buying complete LIB packs. Such a framework is intended to increase the awareness about the complexity of the supply chain of batteries for electric and hybrid vehicles in order to further stimulate its investigation. Future research will extend the approach to include additional aspects as well as procurement configurations

Assessing warehouse centralization and outsourcing in the healthcare sector: An Italian case study

In Western countries the ratio of the public spending on healthcare (HC) to the Gross Domestic Product is growing. In such a context the centralization of warehouses storing drugs, medical devices, and consumable products as well as the outsourcing of their management to qualified logistics providers are increasingly perceived as key drivers for the efficient provision of HC services. In fact, some projects have been carried out in Europe. However, most of the still few available literature contributions either analyze the supply network structure or preliminary address the associated performance. A limited number of approaches assess the actual implications of HC warehouse centralization and outsourcing after its implementation. Also, there is a need for straightforward evaluation methods that can be easily applied by HC providers. This paper discusses the performance of a centralization and outsourcing initiative carried out by an Italian public hospital. Main logistics, HC, and economic indicators are identified based on a literature review and discussions with the hospital management and the logistics provider. After measuring and comparing the variable values over a twelve-year time span, the associated correlations are studied to provide a systematic interpretation of the outcomes able to uncover the benefits of the new organizational approach. In particular, a centralized material management, together with logistics improvements at the bed level, allowed optimizing the time spent on logistics activities at wards. Additionally, the inventory turnover ratio increased by 23%. Finally, the total logistics costs for the analyzed hospital were reduced by about 30%. By offering a simple assessment approach, this work might constitute a methodological starting point for evaluating the benefits of other similar logistics initiatives. As such, it can foster the development of ex-post assessment methodologies to tackle the advantages and drawbacks of warehouse centralization and outsourcing in HC

Understanding the Diffusion of a Mobile Application for Supply Chain Management: A System Dynamics Approach

An appropriate information and logistics structure is of paramount importance for the local fresh food supply chain, which is characterized by market fragmentation and little coordination among suppliers and customers. Mobile communication technologies can help meet this goal because of their large diffusion and real time information management. In this context, a System Dynamics model is developed to study the diffusion pattern and the impacts of a new application for mobile devices supporting supply chain operations. To this end, a reference supply chain in Northern Italy has been considered. The base application and the integration of three additional features assisting in the management of product traceability, electronic payments, and time-sensitive deliveries are analyzed. Simulation results provide insights into the dynamics of adoption of the mobile service and help derive business policies to disseminate its diffusion

Classifying healthcare warehouses according to their performance. A Cluster Analysis-based approach

Purpose: The objective of this paper is to propose an approach to comparatively analyze the performance of drugs and consumable products warehouses belonging to different healthcare institutions. Design/methodology/approach: A Cluster Analysis is completed in order to classify warehouses and identify common patterns based on similar organizational characteristics. The variables taken into account are associated with inventory levels, the number of SKUs, and incoming and outgoing flows. Findings: The outcomes of the empirical analysis are confirmed by additional indicators reflecting the demand level and the associated logistics flows faced by the warehouses at issue. Also, the warehouses belonging to the same cluster show similar behaviors for all the indicators considered, meaning that the performed Cluster Analysis can be considered as coherent. Research limitations/implications: The study proposes an approach aimed at grouping healthcare warehouses based on relevant logistics aspects. Thus, it can foster the application of statistical analysis in the healthcare Supply Chain Management. The present work is associated with only one regional healthcare system. Practical implications: The approach might support healthcare agencies in comparing the performance of their warehouses more accurately. Consequently, it could facilitate comprehensive investigations of the managerial similarities and differences that could be a first step toward warehouse aggregation in homogeneous logistics units. Originality/value: This analysis puts forward an approach based on a consolidated statistical tool, to assess the logistics performances in a set of warehouses and, in turn to deepen the related understanding as well as the factors determining them

A Roadmap towards an Automated Warehouse Digital Twin: current implementations and future developments

Automation and digitization increase the effectiveness and efficiency of logistics processes. In warehousing, Automated Storage and Retrieval Systems (AS/RS) are largely adopted due to their considerable advantages over traditional warehousing, namely high space utilization, shorter cycle times and improved inventory control. To further enhance such advantages, warehouse operations can be digitized via a Digital Twin (DT) which retrieves data from the real-world industrial process, mimics its behaviour and feeds specific inputs back to the real-world process, after elaboration from a simulation-based digital model. This work presents a DT proposal for a real-world AS/RS system, highlighting its current implementations together with its future developments

Integrating risk in project cost forecasting

Estimating duration and cost at completion based on Earned Value Management (EVM) data and managing risk contingency accounts in ongoing projects are typically treated by both scholars and practitioners as separate processes of project monitoring. However, project risk is claimed to significantly impact on project schedule and cost performance. As an attempt to combine these two management areas, the paper illustrates a methodology for improved schedule-based cost estimates at completion with the added nonlinear profile of risk contingency cost consumption. In particular, the model builds upon a Gompertz S-curve shaped cost profile equation. The model is applied to a sample of real project datasets. Its estimate accuracy and stability are tested at various early, middle, and late stages of project development. The proposed schedule-cost-risk estimate methodology proves to be a viable and effective tool to compute refined estimates at completion of complex projects involving formal management of contingency escrow accounts. The theoretical contribution is about creating a stronger connection between EVM and risk contingency management theories. Practical implications are inherent with the ability of the methodology to integrate cost contingency (CC) management into cost and schedule monitoring processe

Analysing the Diffusion of a Mobile Service Supporting the E-grocery Supply Chain

Purpose – The purpose of this paper is to propose a systemic methodology to assess the potential of and facilitate policies for the diffusion of a smartphone based service enabling supply chain (SC) operations in the e-grocery sector. Design/methodology/approach – A System Dynamics (SD) model combining the Bass paradigm for innovation diffusion and an inventory management framework is developed. Semi-structured interviews are conducted to understand the industry business processes; a simple SD model is designed to capture the most important variables together with the relationships among them; a detailed SD model is calibrated and simulation outcomes are analysed. Findings – The efficiency and reliability of the service drive its diffusion among producers and consumers, who in turn persuade retailers to adopt. The assessment methodology can be part of feasibility studies and marketing investigations in order to understand the impact of e-commerce tools on SC processes. Research limitations/implications – This contribution stresses the need to analyse how mobile information technologies may benefit all the business processes of the e-grocery SC, and not just one single process or stakeholder. Practical implications – The approach offers a roadmap to identify the factors influencing the diffusion of mobile e-grocery services as well as the associated impacts on SC processes. Originality/value – The work contributes to overcoming the lack of approaches studying the diffusion of e-grocery by taking into account all the relevant aspects and stakeholders involved and not only the consumer perspective

SIMULTANEOUS ROUTING AND LOADING METHOD FOR MILK-RUN USING HYBRID GENETIC SEARCH ALGORITHM

Milk-run methodology is proposed to manage the procurement of orders from suppliers. The heuristic solution methods in the literature generally apply stepwise approach to route and load the vehicles. In this study we propose a hybrid genetic local search algorithm which simultaneous solves vehicle routing and order loading problems. This is the main contribution of the study. We consider volume and weight capacities (multi capacitated) of different types of transportation vehicles (heterogeneous fleet). Because of high adaptability and easy utilization, genetic algorithms are the most preferred approach of meta-heuristics. The chromosome structure of the proposed genetic algorithm is constituted by random numbers to eliminate infeasibility. The best chromosome of each generation is improved using local search method during the algorithm runs. We applied the algorithm to a real manufacturing company that produces welding robots and other process automation equipment. The results showed the effectiveness of the algorithm