Abstract

The just-in-sequence inventory strategy, as an important part of the supply chain solutions in the automotive industry, is based on feedback information from the manufacturer. The performance, reliability, availability and cost efficiency are based on the parameters of the members of the supply chain process. To increase the return on assets (ROA) of the manufacturer, the optimization of the supply process is unavoidable. Within the frame of this paper, the authors describe a flower pollination algorithm-based heuristic optimization model of just-in-sequence supply focusing on sustainability aspects, including fuel consumption and emission. After a systematic literature review, this paper introduces a mathematical model of just-in-sequence supply, including assignment and scheduling problems. The objective of the model is to determine the optimal assignment and schedule for each sequence to minimize the total purchasing cost, which allows improving cost efficiency while sustainability aspects are taken into consideration. Next, a flower pollination algorithm-based heuristic is described, whose performance is validated with different benchmark functions. The scenario analysis validates the model and evaluates its performance to increase cost-efficiency in just-in-sequence solutions.

Highlights

  • The optimal design and control of logistics systems and supply chain solutions is one of the most important tasks of the global economy since production and service companies can reduce their costs substantially by reducing logistics-related expenditures including the costs of transportation, warehousing and materials handling [1]

  • Heuristics are experience-based techniques that help in problem-solving in the case of NP-hard optimization problems

  • This paper focused on the mathematical description of the framework of supply chain process of required sequences of the manufacturer from various suppliers including time- and capacity-related constraints showing their impact on the planned supply chain solution

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Summary

Introduction

The optimal design and control of logistics systems and supply chain solutions is one of the most important tasks of the global economy since production and service companies can reduce their costs substantially by reducing logistics-related expenditures including the costs of transportation, warehousing and materials handling [1]. The main focus of this research is the modelling and optimization just-in-sequence supply in Industry 4.0 environment from a sustainability (energy efficiency) point of view, taking into account costs and logistics performance parameters either as part of the objective function or as constraints. The main contribution of this article includes: (1) the model of just-in-sequence supply in the Industry 4.0 environment that include scheduling and assignment problems; (2) a harmony search-based heuristic algorithm to solve the optimization problem of just-in-sequence supply in the case of interconnected logistics systems; (3) analysis of new operators for standard harmony search optimization to increase the performance of the algorithm from speed of convergence point of view; and (4) computational results of the just-in-sequence supply models with different datasets. The specific purchasing cost includes all cost related to manufacturing and logistics operations

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