Mitigating supply chain disruptions through interconnected logistics services in the Physical Internet

This paper investigates the resilience of inventory models using interconnected logistics services in the Physical Internet (PI). With traditional supply chain network design, companies define and optimise their own logistics networks, resulting in current logistics systems being a set of independent heterogeneous logistics networks. The concept of PI aims to integrate independent logistics networks into a global, open, interconnected system. Prior research has shown that new inventory models enabled by and applied to PI could help reduce inventory levels thanks to its high flexibility. Continuing along these lines, this paper examines how inventory models applying PI deal with disruptions at hubs and plants. To attain this, a single product inventory problem with uncertain demands and stochastic supply disruptions is studied. A simulation-based optimisation model is proposed to determine inventory control decisions. The results suggest that the PI inventory model, with greater agility and flexibility, outperforms the current classic inventory models in terms of resilience. Moreover, the difference in performance increases when the product value, penalty costs and disruption frequency increases. This paper indicates a novel approach to build a resilient supply network.     

Modelling on vendor-managed inventory policies with equal and unequal shipments under GHG emission-trading scheme

This paper studies five different stock control policies in the supply chain management. The lead time can be shortened by extra investment between two entities. The vendor produces a single product and delivers the order quantity in a number of unequal shipments to the buyer. The unit holding cost is divided into financial and storage components. The vendor takes care of financial component until the products are sold to the end customers to encourage them to buy more products. In order to reduce emissions from production and to protect the environment, some legislative actions have been taken such as implementing taxes and penalties. The cost function also includes these taxes and penalties. The optimal solutions of this constrained mixed integer non-linear programming problem are obtained by using the Genetic Algorithm (GA). Numerical examples are employed and comparison works are carried out with other existing literatures. Results show that the performance of the system is better when it is operated under unequal shipment policies and vendor-managed inventory (VMI) agreement.     

Multi-echelon inventory control: an adjusted normal demand model for implementation in practice

This paper presents an approximation model for coordinated control of one-warehouse multiple-retailer inventory systems, where all locations use continuous review (R, nQ) policies. The motivation stems from close collaboration with a supply chain management software company, Syncron International, and one of their customers. A core objective has been to develop an accurate method for determining near-optimal reorder points that can be directly applied to real-life systems. The approach is based on decomposing the complex multi-echelon problem into N?+?1 single-echelon problems, using a near-optimal-induced backorder cost at the central warehouse. Important extensions made compared to earlier work include the addition of procedures to adjust for lead-time variability, and for undershooting the reorder point when customers’ order sizes vary. The result is a flexible model that is computationally and conceptually simple enough to be implemented in practice. A numerical study, including real data from the case company, illustrates that the new model outperforms existing methods in the literature. Compared to the current methods used by the case company, it offers significant improvements in both service-level fulfilment and system-wide inventory holding costs. Implementations of the model into the Syncron software are in progress.     

Physical Internet,conventional and hybrid logistic systems: a routing optimisation-based comparison using the Eastern Canada road network case study

The Physical Internet (PI) logistics system is an innovative logistics concept that has been gathering a lot of attention lately. This system consists of open, modular and shared containers and transit hubs to move goods globally. The purpose of this paper is to compare the performance of PI with regard to the conventional (CO) logistics system in order to quantify the advantages and disadvantages of PI from a truck and driver routing perspective with an explicit constraint on maximum return time for drivers. The comparison presented in this work is carried out through Monte-Carlo simulation within a sequential three-phase optimisation framework. Based on our analysis, PI reduces driving distance (and time), GHG (greenhouse gas) emissions and the social cost of truck driving. On the other hand, it increases the number of container transfers within the PI logistics centres. This insight is a contribution of the paper and reinforces the current literature on PI. The other main contribution of the paper is a validation of the claim that the number of drivers who can go back home at the end of a work day remains consistently high in PI, regardless of the traffic level.     

An integrated model for the production-inventory-distribution problem in the Physical Internet

In contrast to traditional supply chain networks, Physical Internet (PI) is an interconnected open global logistics network based on open PI hubs and standard PI-containers that has the potential to achieve ground-breaking improvements in integrated production-inventory-distribution management. In this paper, to quantify the advantages of PI from a cost performance perspective, we propose a mixed-integer linear programming (MILP) formulation for addressing the problem that combines an integrated production-inventory-distribution decision with PI, which has been addressed separately in the existing literature. The results of computational experiments show that while achieving a comparable or better service level, PI can achieve significant cost savings compared to a traditional supply chain network with a dynamic configuration and a hybrid configuration. Moreover, we investigate the impact of several problem parameter changes on the total costs under each network setting, and managerial insights are derived.     

Optimal inventory control with sequential online auction in agriculture supply chain: an agent-based simulation optimisation approach

With the development of e-commerce, in agriculture supply chain, online auction is adopted as an inventory clearing tool. Comparing to mathematical models studying inventory control over online sequential auctions, our agent-based simulation model could systematically describe the complexities of bidders’ information interactions and behaviour preferences caused from financial and production perspectives, and by other supply chain members. In addition, we take into account the complex and dynamic market environment, which will impact the operation effect of auction policies. With identical auction items, the profit-maximising firm must decide auction lot-size, which is the number of units in each auction, minimum initial bid, and the time interval between auctions. To obtain the optimal solution, nested partitions framework and optimal expected opportunity cost algorithm are integrated to improve computation accuracy and efficiency. A case study based on real data is conducted to implement and validate the proposed approach. Furthermore, based on the model, the paper studies the sensitivities of the decision variables under different supply and demand scenarios.     

Containers monitoring through the Physical Internet: a spatial 3D model based on wireless sensor networks

The Physical Internet concept was developed to address the current unsustainability problem of logistic systems. The key elements are the encapsulation and the handling of world-standard smart green modular containers (π-containers) throughout an open global logistic infrastructure. Logistic processes such as partial loading/unloading or splitting/merging of π-containers play an important role for a successful Physical Internet. However, the large variety of transformation processes can introduce desynchronisation between the physical and informational flows, i.e. the real composition of a composite π-container (a set of stacked π-containers) can differ of the information stored in the supply chain management system. To overcome this problem, this paper proposes a system to generate and maintain automatically a virtual three-dimensional layout reflecting the spatial distribution of π-containers. The proposed approach uses smart π-containers equipped with wireless sensor nodes. The relative position of π-containers can be determined by the neighbourhood relationships between the sensor nodes. From this information, a constraint set is formulated in a Constraint Satisfaction Problem where each solution is a potential loading pattern. The methodology is developed and computational experiments are proposed, as a proof-of-concept. The results show that our proposed method yields quick and satisfactory results.     

Optimisation of one-stop delivery scheduling in online shopping based on the physical Internet

The circulation of online shopping commodities generally involves many entities, such as online manufacturers, wholesalers, retailers and customers. Goods from manufacturers to consumers undergo several exchange stages involving different economic entities. The logistics cost increases in certain supply chain nodes and the risk of backlog or running out of stock is high because of the different income and risk expectations of entities, as well as the varying degrees of information sharing between them. Clearly, a one-stop delivery mode crossing numerous transaction links in online shopping can effectively solve these problems and save social resources. However, realising this one-stop mode requires a series of specific premises, appropriate software and hardware technology support. This study introduces the Physical Internet into the one-stop delivery mode as an important logical and technical support, analyses the operating mechanism of the Physical Internet and discusses the operating conditions of one-stop delivery. It analyses the optimisation contents and objectives of one-stop delivery scheduling to construct a multi-objective optimisation mathematical model and propose a solving algorithm. Finally, this study uses an application case to verify the feasibility and effectiveness of the optimisation mechanism and algorithm.     

物联网技术在制冷空调行业中的应用

针对物联网技术在制冷空调行业中三个方面的应用进行分析,介绍了物联网技术在食品冷藏储运及实时监控中、制冷空调系统远程控制中、中央空调系统计费系统等方面的应用情况。