Advanced Manufacturing and Sustainable Logistics

Shorter delivery times can be utilized best, if the ordered goods are already in stock. With an increasing product range companies can no longer manage to guarantee the immediate availability of each product variation, which would solve any kind of supply problems. The remaining stocks have to be placed with utmost effectiveness and the available factors of production need to be applied efficiently time and again. This article presents methods of resolution by means of selected practical examples.

This paper presents a mesoscopic simulation approach in addition to the prevailing continuous and discrete event simulation approaches used for logistics systems. In terms of level of detail, the mesoscopic approach falls between these two approaches. Mesoscopic models represent logistics flow processes through piecewise constant flow rates. The resulting linearity of the cumulative flows allows for event scheduling and the use of mathematical formulas for recalculating the system‘s state variables at every simulation time step. The simulation time step is variable and the step size depends on the occurrence of scheduled events. This leads to a high computational performance. The mesoscopic approach distinguishes between different parallel product types. The modeling components are multichannel funnels, delays, assemblies and disassemblies.

Continuous cost pressure causes companies to move production sites to low cost countries. Although production costs decline, logistics costs are negatively affected. Individual companies with limited shipment volumes do not have access to cost efficient and highly productive transport networks.Multimodal, cross-company logistics models are one approach to open up the potentials of transport networks for companies. This paper deals with the conceptual design and evaluation of cross-company logistics models. A new, holistic simulation and evaluation model was designed for development support of multimodal logistics concepts and potentials are validated instancing an example region.

Global trends demand the design of adaptable production systems. The department of Factory Planning and Factory Management at Chemnitz University has proven its extensive competences in this field. On this basis the concept of Building Blocks for Adaptable Production Systems was developed. It is implemented in the existing Experimental and Digital Factory of the department. This includes an integrated design of product and production system. The approach is modular. In result, planning/visualization modules of the Digital Factory as well as modules for machining, material flow, information flow and energy flow are investigated. Fields of application are shown.

During practical simulation projects, the required model data must be imported from existing data bases. The focus is to keep the amount of effort required to a minimum. The main issue is the provision of process data in par ticular concerning work operations that require timing and resources to be accounted for. This task is comparatively easy in the field of parts manufactur ing as the operations are sequential in nature. However, with assembly proc esses requiring interlinked operations, this task turns out to be considerably more complex. A detailed dis cussion of differences between the relevant proc ess data and the relevant time data required for simulation is followed by the illustration of two examples showing how the interface problem can be solved for the export of sequential and interlinked process data to a simulation proce dure. The difficulties which usu ally arise during such a project and future approaches to the problem are also discussed.

The paper presents the application of varies OR techniques to the redesign of the distribution systems. Two real-world case studies are considered. In the first case study the optimization (mathematical programming) approach is discussed. In the second case study heuristic design of different variants of the distribution system supported by object oriented simulation combined with their multiple criteria evaluation is carried out. The following OR techniques and tools are applied: single and bi-criterion mathematical programming, object oriented simulation, multiple criteria ranking methods. The results of computational experiments are presented.

By reason of increasing product complexity and diversity of va riants and increasing system and network complexity as well as increasing demands on quality, flexibility, service time, and costs companies need efficient methods and procedure models for planning, redesigning and improving their pro duc tion and logistics systems. The management of logistics networks like supplier, pro duction, distribution, and transportation networks has become an important strategic task due to ongoing globalization of economy, too. Nowadays, simu lation is a well-established model-based analysis method for a lot of appli ca tions in this domain. This paper discusses the trends and solutions in development and research for simulation technology in production and logistics and high lights some current logistics applications.

In the past decade, logistics in the context of humanitarian operations has more and more moved into the focus of logistics practitioners and academics. While humanitarian organisations have realised that a major part of disaster relief spending can be attributed to logistics and supply chain management activities associated with humanitarian operations, researchers have found that the area of logistics in the context of humanitarian operations gives rise to a number of unique and interesting challenges. This paper is meant as an introduction to the track Humanitarian Logistics at the 8th International Heinz Nixdorf Symposium. A recent natural disaster helps to elaborate the domain humanitarian operations. A number of important definitions are presented. Moreover, some of the specific characteristics and challenges of logistics in the context of humanitarian operations are described.

Sustainability in the context of information and communication systems is often discussed using the technical term “Green IT”. However, Green IT-concepts often just address the infrastructure level of an information and communication system architecture. Acknowledging the potentially huge contribution to sustainability improvements that lies in the adequate design of processes, we discuss concepts to evaluate and compare different process designs with respect to sustainability considerations.

Supply Chain Management (SCM) is identified and accepted as a competitive advantage. Nevertheless holistic approaches for value-based SCM to leverage this advantage in a value adding way are missing so far. Efficient approaches to quantify and compare value contributions from Supply Chain (SC) value drivers are needed. This paper contributes to this need by proposing a model to efficiently quantify and compare value contributions from SC cost and working capital, that affect the profitability and asset performance. Properties and characteristics of the model, which is based on the Discounted Cash Flow concept, are illustrated by an industrial example of a single company. In this example, the relevance of timing and continuity of developments of SC cost and working capital for value creation is pointed out.

Complexity management and management of assortment variety in particular is the subject matter of many strategic decisions in consumer goods industries. As the assortment of a company evolves continuously by introducing new or discontinuing existing products, the most important question is

what effects on the configuration of the production and distribution network and related costs can be expected if the assortment is changed in a particular way?

. This work presents the concept for a decision support system (DSS) that evaluates the most relevant assortment dependent cost positions for a production and distribution network, focusing on the areas of inventory management and production execution. An overview of the prototype DSS implementation

Complana

and its sample application to the cloths’ supply chain of an international household product manufacturer is given.

The situation of automotive industries can be characterized by low and fluctuating demands for final products. Components supply and as well production systems and networks are too often optimized for the operation at high degrees of utilization without explicitly supporting flexibility. Increasingly, production strategies like Build-to-Order (BtO) are applied to enhance the flexibility of the production networks in automotive industries. Customize-to-Order (CtO) is a promising approach to avoid the efforts for coordination and control that result out of BtO. Research and development to bring CtO to life by means of its process and technology enablers is done in the EU-funded project ACDC. ACDC develops a highly dynamic and robust supply loop concept, which is superior to the conventional hierarchic system in reactivity, reliability and costs while maintaining the 100 % guarantee of delivery. For the proof-of-concept a characteristic next generation automotive modular system is being developed, which merges different technologies, mechanics and electronics, into high quality modules to reduce part-count and cost, i.e. first cost, cost for stocks and stocks itself, and to achieve a customer-neutral component/supply concept.

The automotive industry and in particular the automotive supplier industry need to master significant challenges in the future. The Original Equipment Manufacturers (OEMs) require products of highest quality at lowest cost from their suppliers. In order to assure quality, all large automotive manufacturers require an independently certified quality management system, in particular ISO/TS 16949, from their suppliers. These quality management systems often involve a substantial efforts both in time, work and documentation and are thus frequently not consequently followed or face little employee acceptance. On the other hand, companies try to reduce production cost by establishing stable and efficient processes with methods and tools of lean management. This paper deals with an approach which integrates these two management systems, i.e. quality management and lean management, to an integrated and comprehensive Lean Quality Management System. Methods and tools of lean management are used to fulfil the requirements of the quality management system. Two pilot projects served to validate the developed integrated management system.

In recent years, the works on supply chain management (SCM) have been broadened from isolated static models of supply chain design (SCD) and planning (SCP) to integrated SCD and SCP models. This paper develops a framework for integrated SCD and SCP on the basis of adaptation principles and regarding SC execution dynamics. To achieve this integration, static models of SCD are brought in correspondence to the dynamic models of SCP and control. The adaptive feedback loops between the planning and execution models are established. It becomes possible if traditional operations research (OR) techniques are extended by optimal control theory. We illustrate the general framework with the help of a modelling complex. We show explicitly how to distribute static and dynamics variables and constraints of SCD and SCP by interconnecting static elements in SCD optimization linear programming model with corresponding SCP dynamic elements in optimal control model. This makes it possible to consider conventionally isolated SCD and SCP problems taking into account non-stationarity of supply chain execution along with the adaptive control within a conceptually and mathematically integrated framework. In doing so, the developed framework contributes to the advancing decision-making support for SCM on the basis of interrelating planning and execution levels instead of generating optimal solutions that fail in a real perturbed execution environment.

Existing Supply Chain Management approaches focus predominantly on harmonization of supply processes with numerous external partners. In order to manage the complexity of this objective they assume standardized processes for different companies. This paper proposes a novel approach, which meets the market demands for a proceeding, which is both, more pragmatic and more flexible than common Supply Chain Management reference models. It explains why this demand exists and shows how an adequately differentiated supply chain profile of a company can be derived by analyzing constitutive strategic aspects with impact on supply processes. Finally, it shows how action recommendations for Supply Chain Management can be derived in a lean manner and exemplifies how those recommendations can look like.

This paper presents the mathematical derivation of a new generation of the most largely used periodic review policy in supply chain: the coordinated (S, R) replenishment rule. We first derive the classical order-up-to model and then we modify it to generate the coordinated decision policy equations. We run a numerical simulation on a serial supply chain model to show differences in the two policies. We conclude on the managerial implications related to coordinated replenishment.

OEMs are focusing more on manufacturing critical components whereas non-critical components are outsourced to suppliers. At supplier’s side, production planning process is intervened between sales and production processes. Past experiences can be adapted to support production planning activities. Hence, it is crucial to identify knowledge from previously solved cases on demand and assimilate it. At the Information Systems Institute, various methodologies (e.g., similarity search in product and process data) are developed to support aforesaid knowledge intensive activities in sheet metal forming. However, these methodologies are used as stand-alone applications. Therefore, the current contribution introduces an integrated virtual value creation chain in sheet metal forming which utilizes previously developed methodologies. Also, these methodologies are elaborated as part of the integrated virtual value creation chain. The developed methodologies are heterogeneous and are coupled through a shared knowledge base.

Globalization leads to increasing competition for companies. Next to this, customer seek for individual products, leading to a boost in costs for product development. We try to tackle both aspects in our current research. We are trying to develop a solution for the automatic extraction of routings from a three-dimensional product description. This leads to two advantages. First, costs for product development are decreasing because labour intensive planning will be eliminated. Second, the time between customer inquiry and offer can be reduced, which is an additional advantage to get ahead of competition. To develop such a solution, different aspects have to be considered. This paper deals with the product representation, which should allow us to automatically assign process steps to design-elements.

Feature-based design is a very promising concept for optimizing the entire product development by enhancing the product model with significant information. An approach for its implementation is the ISO-standard 10303 “Standard for the Exchange of Product model data”. ISO-10303 provides a formal reference model for a consistent, standardized and complete product description which is fundamentally required for automated process planning.

This paper summarizes the reasons for choosing the formally specified feature objects of the ISO-10303 application protocol 224 for 3D-visualization and how we implemented the concept “geometry from feature”. Therefore we have developed a modular “viewer-concept” for connecting suitable geometric modeling cores like ACIS with our AP 224 feature library which will be presented in the paper. Additionally, a short overview of automated process planning will be given.

Workforce management is comprised of several phases, such as working time model generation and personnel scheduling. The combination of these phases has significant potential, especially for volatile personnel demand. This article shows that the concepts for the automatic generation of working time models already used in retail can be transferred to personnel scheduling in the logistics industry. Through this, the assignment of personnel can be accurately adapted to personnel demand. The results suggest the use of heuristics, especially meta-heuristics such as the evolution strategy or constructive methods which are adapted to the problem at hand.

Knowledge and information flow within supply chain has gained more and more significance. A timely and accurate information exchange among the actors of the supply chain prevents unnecessary loss due to failed planning and missed forecasting. The method of collaborative supply chain management should reduce uncertainties in supply chain. Nevertheless, because of its complexity, its implementation has not been fully optimized. Knowledge and information flows within the supply chain has been unattended. To achieve transparency and trust among partners in the supply chain, a new approach, which allows the visualization of these knowledge and information flows and their participants, is required. Knowledge Modeling and Description Language (KMDL) offers a means to meet this requirement.

Both the logistics as well as the production management have to face challenging requirements nowadays. Not only evolutions in markets and new organizational structures induce important both systems and methods adaptations, but especially the enhanced application of information and communication technologies along the worldwide distributed value creation chain results in a sustainable paradigmatic change. While in the field of production an already field-tested concept, the production system approach exists to meet the various demands, a similar concept is lacking in the area of IT-based Logistics. The given resemblances between the two disciplines favor a transfer of concept by reference modeling of an IT-based Logistics System depending on the production system framework.

The German Collaborative Research Centre 637 ‘Autonomous Cooperating Logistic Processes’ tries to make a paradigm shift from central planning to autonomous control in the field of logistics. Among other things, autonomous routing algorithms based on internet routing protocols are developed. The Distributed Logistics Routing Protocol (DLRP) was originally designed for transport networks to match goods and vehicles and to continuously make route decisions. Now the protocol was transferred to production logistics as a promising autonomous control method. The DLRP enables the abilities for logistic objects, orders and machines, to make own decisions with the information actually and locally available. In contrast to common scheduling algorithms, the DLRP is not a planning, but a control method with the capability for multiple, user defined optimization goals. The new autonomous control concept for production logistics will be presented in this paper and a first evaluation with common scheduling heuristics will be given.

Though agility is a core demand for firms, software based process modeling and execution approaches realize strict and inflexible formalization. We propose an extension of process modeling and execution based on the integration of real world information as trigger for process variance. As decisions are knowledge-intensive they are propagated to knowledge workers to support the decision process. These activities are again tracked, to identify demand for process redesign. Thus, processes become basis for proactive support and a representation of reality, even in change-ridden domains.

This paper outlines general methods, calculation models and some available software for the calculation of carbon dioxide (CO

2

) emissions in logistics activities. General calculation formulas are presented mostly for transportation by truck, but by train as well. Listed are CO

2

emission factors (EFs) for the different types of fuels and partially average numbers for the various transport carriers. The relevance of the calculation of CO

2

emissions in the logistics sector is described to show the growing importance of sustainability in the world of logistics.

This paper studies a strategic supply chain management problem of designing robust networks which perform well under both normal condition and disruptions. A mix-integer programming model which incorporates

p

-robust measure is presented. The objective is to minimize the total nominal cost, while setting upperbounds on relative regrets in disruption scenarios. A GA-based hybrid metaheuristic algorithm is proposed and tested. Computational results demonstrate that system robustness can be substantially improved with little increase in cost. Our solution is also less conservative compared with common robustness measures.

The paper considers the operational planning task in the supply network of an Original Equipment Manufacturer (OEM), including the logistics from first tier suppliers to the assembly areas of the OEM. We propose an integrated planning approach both for the external and internal part of the network. The approach is based on a mixed-integer optimization model with a multi-commodity network design formulation. We present a generic modelling construct, which is capable of representing various tariff structures and discount schemes. These tariffs and discounts are parameters to the model and can be configured without altering the model formulation. Finally, we present a case study including numerical results for instances of practically relevant magnitude using a standard solver as well as a specially tailored heuristic algorithm.

Job shop scheduling is among the most well studied problems in production planning. Yet, there is still a lack of comprehensive treatment of intermediate buffers. This paper deals with limited intermediate buffers with the important extension that not all jobs need to be handled in the same way regarding buffer space consumption. A heuristic to find feasible solutions is described and computational results are presented. While a reference procedure from literature devoted to case of unit buffer space consumption does not guarantee feasibility in all cases, the approach developed in this paper does. Moreover, it allows for variable space consumption, a feature which is new to literature paying better attention to more practical requirements than other models.

The three dimensions of sustainability have predominantly been addressed in a standalone fashion by academic researchers. Businesses and their supply chains often follow this trend, as environmental and social initiatives tend to be disconnected from overall strategies. Most sustainability frameworks are not directly applicable to the inherent complexity of supply chains. Supply chains need to address the sustainability dimensions in a strategic way that encompasses all stakeholders and aligns supply chain goals with the aims of individual members. Supply chains have to adjust their transformation strategy depending on the level of maturity. Our research proposes a model that integrates sustainability in supply chains with maturity considerations. Furthermore a sustainability modeling and reporting system is developed that facilitates a progression towards higher maturity levels. The proposed artifacts leverage the features from established frameworks and may be used in a prescriptive manner for design and implementation.

Scenario technique is a tool to reveal the knowledge of an expert group about possible and consistent scenarios of the future. The current use of this technique suffers from an inflexibility of the available software. To overcome this shortage, the core part of this solver, i.e. the scenario generation phase, has to be re-implemented. It is demonstrated that this problem can be formulated as an integer linear programming problem. To find all feasible solutions the solver SCIP was adapted. The solutions are then clustered and these clusters are verbally described. The approach is demonstrated by using data from the research project remanufacturing oriented production equipment development, in which scenarios for sustainable value creation were identified and described.

Groupage transports are frequently calculated based on freight rates assuming a declining rate with respect to volume and to transportation distance. This paper investigates the case of feeding many small shipments to customers via a freight forwarder network. It is argued that costs for post-carriage transport dominate other costs. Based on a theoretical estimate, simulation experiments for the case of a uniform distribution of customer locations around the subsidiary with a fixed shipment size per drop suggest that the aggregate costs grow progressively with increasing customer drop distances from the subsidiary. The resulting implications for transport modelling are discussed.

Constraints on the lifetime of items force organizations to carefully plan their production in cooperation with their supply chain partners up- and downstream along the chain. This is important because waiting times due to suboptimal planning give rise to increasing lead times and, consequently, to deterioration and thus decreasing quality of items so that, in the worst case, they cannot be used. Increased costs, delivery delays, quality decreases and unsatisfied customers are negative effects that can be avoided by accounting for product depreciation in the production process. We highlight the importance of including deterioration and perishability in planning decisions and present well-known discrete lot-sizing and scheduling models extended in this regard. The effects on plans derived by these models including depreciation is shown using a numerical example.

Although there is a rich steam of literature championing the importance of trust in long-term business relationships, there has been relatively little interest in the area of the development and maintenance of trust in hastily formed networks that are formed at short notice and that operate for a limited period of time. Such networks can be found in the aftermath of a rapid onset disaster where individuals from a broad variety of organisations and geographic locations come together in order to bring relief to a disaster-stricken area. The aim of this paper is, therefore, to further the understanding of trust in hastily formed networks through the presentation of a theoretical model, a discussion of its practical application in a post-disaster scenario, and proposals for testing the approach in a live setting.

The concept of a fourth-party logistics provider is increasingly explored in the literature and has come to focus on firms that are able to organize and run significant parts of a supply chain. These firms are assigned increasing responsibility for design, recruitment of other firms and maintenance of supply chains due to very specific skills. Within the humanitarian sector there is considerable reorganization of the necessarily agile supply chains necessary to deliver relief during disasters. This reorganization has included the designation of clusters for different types of activity, and significantly leadership of the cluster to specific organizations. This article applies the concept of a fourth-party logistics provider on the cluster concept to help develop a concept for how the cluster leads themselves should operate.

This paper presents a new heuristic algorithm based on combining branch and bound algorithm and a dynamic simulation model for the traveling salesman problem. The approach uses the simulation results for creating the best tours within the branch and bound tree. The most advantage of this approach lies in the learning profcedure both in simulation process and B&B algorithm. In order to test the efficiency of the proposed algorithm, several computational experiments were conducted over middle-scale and large-scale problems. As the computational results show the algorithm can be used easily in practice with reasonable accuracy and speed.

Disassembly and recycling activities are becoming ever more important as a result of legislative changes. The disassembly of end of life products will come to have an increasingly industrial character focusing on the planning and control of economical disassembly processes. As a consequence, the pre-dominant form of work organisation will be based on the division of labour as this system allows for the efficient usage of various disassembly tools and methods in contrast to the complete-disassembly workstations mainly in use today. But the control strategies derived from assembly are only partially suitable for these disassembly systems as they do not sufficiently consider the specific characteristics of disassembly. Any control method suitable for this field of application needs to incorporate new approaches to the flexibilisation of workflows in disassembly systems.

The personnel flexibility of car manufacturers is used mostly as reactive means, in order to be able to realize the planned production program. The approach of trying to combine production planning with human resource planning is pursued within the scope of the Eurostars research project "Advanced Production Program and Personnel Assignment Planning" (A ProPer Plan). This approach combines the advantages of car sequencing with the advantages of the mixed modeling approach by coupling optimization with simulation. The solution constitutes an iterative planning process, where an optimized sequence is examined by simulation for feasibility regarding personnel flexibilities. The contribution points out, how such an integrated solution was realized and which results could be obtained with real time data of manufacturers of vehicles.

Lack of integration, holism, and customizability are perennial problems that have beset research and practice in port simulations. This study investigates the container movements at a metropolitan sea terminal. The operations are mapped out and a logical model of the transportation flows is constructed. A simulation is developed in Arena that describes the transportation flows in an accurate but parsimonious manner. The study addresses several research gaps by providing a highly integrated, customisable and upgradeable simulation model which describes port operations in a more holistic fashion. Several experiments focussing on different modal splits for inter-terminal transport are carried out. The model provides a practical background to study the influence of operational changes, e.g. the influence of larger sea vessels on handling operations; effects of a larger share of rail transport; effects of increasing container throughput on throughput time and storage capacity; and the evaluation of sustainability measures.

As IT Service Management becomes more and more common in actual IT organizations, the need of trained personnel raises sharply. To cover theses needs, companies can either train their employees or they hire new employees, who possess these skills already. But what competence is required and how should it be trained? Employees will need some knowledge of the IT Service Management systems, they are going to work with, but even more they have to study and understand the fundamental processes of IT Service Management. Today several simulations respectively simulation games are used to give participants a general comprehension of IT Services and a slight insight into some processes. Nevertheless, this experience is quite far from the real processes and without further training a lot of time and effort is needed to completely transform the IT organization. The closing of this gap is addressed in this paper. It proposes training with realistic and more detailed simulations based on an IT Service Management process model as a valuable solution.