Modeling and controlling of an integrated distribution supply chain: simulation based shipment consolidation heuristics [Elektronische Ressource] / von Hatem Soliman M. Aldarrat

Hatem

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• Management

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• Publié par: universitat_duisburg-essen
• Publié le: 01 janvier 2007
• Nombre de lectures: 21
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

Modeling and Controlling of an
Integrated Distribution Supply
Chain: Simulation Based
Shipment Consolidation
Heuristics




Von der Fakultät für Ingenieurwissenschaften, Abteilung Maschinenbau der
Universität Duisburg – Essen
Zur Erlangung des akademischen Grades




DOKTOR-INGENIEUR

genehmigte Dissertation


Von

HATEM SOLIMAN M. ALDARRAT

Aus

Benghazi (Libyen)





Referent : Univ.-Prof. Dr.-Ing. Bernd Noche

Korreferentin : Univ.-Prof. Dr.-Ing. Nina Vojdani

Tage der mündlichen Prüfung: 11.12.2007
Abstract
Increasing competition due to market globalization, product diversity and technological
breakthroughs stimulates independent firms to collaborate in a supply chain that allows
them to gain mutual benefits. This requires collective knowledge of the coordination and
integration mode, including the ability to synchronize interdependent processes, to
integrate information systems and to cope with distributed learning.
The Integrated Supply Chain Problem (ISCP) is concerned with coordinating the supply
chain tires from supplier, production, inventory and distribution delivery operations to
meet customer demand with an objective to minimize the cost and maximize the supply
chain service levels. In order to achieve high performance, supply chain functions must
operate in an integrated and coordinated manner. Several challenging problems
associated with integrated supply chain design are: (1) how to model and coordinate the
supply chain business processes; (2) how to analyze the performance of an integrated
supply chain network; and (3) how to evaluate the dynamic of the supply chain to obtain
a comprehensive understanding of decision-making issues related to supply network
configurations. These problems are most representative in the supply chain theory’s
research and applications.
A particular real life supply chain considered in this study involves multi echelon and
multi level distribution supply chains, each echelon with its own inventory capacities and
multi product types and classes. Optimally solving such an integrated problem is in
general not easy due to its combinatorial nature, especially in a real life situation where a
multitude of aspects and functions should be taken into consideration.
In this dissertation, the simulation based heuristics solution method was implemented to
effectively solve this integrated problem. A complex real life simulation model for
managing the flow of material, transportation, and information considering multi products
multi echelon inventory levels and capacities in upstream and downstream supply chain
locations supported by an efficient Distribution Requirements Planning model (DRP) was
modeled and developed named (LDNST) involving several sequential optimization
phases. In calibration phase (0), the allocation of facilities to customers in the supply
chain utilizing Add / Drop heuristics were implemented, that results in minimizing total
distance traveled and maximizing the covering percentage. Several essential distribution
strategies such as order fulfillment policy and order picking principle were defined in this
2phase. The results obtained in this phase were considered in further optimization
solutions.
The transportation function was modelled on pair to pair shipments in which no vehicle
routing decision was considered, such an assumption generates two types of
transportation trips, the first being Full Truck Load trips (FTL) and the second type being
Less Truck Load trips (LTL). Three integrated shipment consolidation heuristics were
developed and integrated into the developed simulation model to handle the potential
inefficiency of low utilization and high transportation cost incurred by the LTL.
The first consolidation heuristic considers a pure pull replenishment algorithm, the
second is based on product clustering replenishments with a vendor managed inventory
concept, and the last heuristic integrates the vendor managed inventory with advanced
demand information to generate a new hybrid replenishment strategy. The main
advantage of the latter strategy, over other approaches, is its ability to simultaneously
optimize a lot of integrated and interrelated decisions for example, on the inventory and
transportation operations without considering additional safety stock to improve the
supply chain service levels.
Eight product inventory allocation and distribution strategies considering different safety
stock levels were designed and established to be considered as main benchmark
experiments examined against the above developed replenishment strategies;
appropriate selected supply chain performance measures were collected from the
simulation results to distinguish any trading off between the proposed distribution
strategies.
Three supply chain network configurations were proposed: the first was a multi-echelon
distribution system with an installation stock reorder policy; the second proposed
configuration was Transshipment Point (TP) with a modified (s,S) inventory; and the last
considered configuration was a Sub-TP, a special case from the second configuration.
The results show that, depending on the structure of multi-echelon distribution systems
and the service levels targets, both the echelon location with installation stock policy and
advanced demand information replenishment strategy may be advantageous, and the
impressive results and service level improvements bear this out.
Considering the complexity of modeling the real life supply chain, the results obtained in
this thesis reveal that there are significant differences in performance measures, such as
3activity based costs and network service levels. A supply chain network example is
employed to substantiate the effectiveness of the proposed methodologies and
algorithms.

Keywords: Integrated Supply Chain Network Design Configuration, Simulation,
Shipment Consolidation, Vendor Managed Inventory, Safety Stock.





























4




This Thesis is dedicated to


My Mother


My Wife


My Daughter

and to

My late Father










5Acknowledgements
First and foremost, I would like to thank God for all that he has given to me. Without his
grace, mercy and blessing I would not have been able to start and complete this thesis.
I would like to thank Prof.Dr.-Ing. Bernd Noche for his guidance and tremendous
support, which has led to the successful completion of this thesis. I am also grateful to
Tarak Housein, Thomas Roll and Kamel Klibi, for their help and suggestions.
I learned a tremendous amount in the areas of practical and theoretical logistics and
would like to thank the faculty members of Product Engineering, Transport System and
Logistics and members of SDZ GmbH. I am very grateful to researchers, who have
written their amazing work in papers from which I learned a tremendous amount in the
field of integrated supply chain management.
I would like to thank my mother and my wife for their love and affection and will never
forget the values they have instilled in me and I will always strive to make them proud.
6Table of Contents
1. Introduction .......................................................................................................................... 19
1.1 Background ............................................................................................................. 19
1.2 Introduction to the Supply Chain ............................................................................ 20
1.2.1 Definition of Supply Chain Management (SCM) ............................................. 20
1.2.1.1 Materials Managements (Inbound Logistics) ........................................... 22
1.2.1.2 Physical Distribution (Outbound Logistics) .............................................. 22
1.3 Overview of the Research Problem ....................................................................... 23
1.4 Research Motivation and Objectives ...................................................................... 23
1.4.1 Thesis Motivation ............................................................................................. 24
1.4.2is Objectives ............................................................................................ 25
1.5 Organization of the Thesis...................................................................................... 25
2.0 Literature Review of Related Research Work ................................................................... 28
2.1 Introduction ............................................................................................................. 28
2.2 Supply Chain Integration and Coordination Classification Framework ................. 29
2.2.1 Multi-Plant Coordination Problem (MPCP) ..................................................... 2