Increase Service Level Research Articles

Optimal Merchandise Testing with Limited Inventory

We consider the allocation of inventory to stores in a \merchandise test, whereby a fashion retailer deploys a new product to stores in limited quantities in order to learn about demand prior to the main selling season. Our problem formulation includes practical considerations like fixed costs and multiperiod inventory considerations but is challenging to analyze directly. Instead, we take a bounding approach that isolates the novel aspect of our problem: the impact of test inventory allocation on demand learning. We specifically examine a tradeoff between the quantity of stores tested and the quality of observations, which can be impacted by demand censoring due to inventory stockouts. We find that the visibility into the timing of each sales transaction has a pivotal impact on the allocation decisions that optimize learning. When such timing information is unobservable, the retailer may need to consolidate inventory in few stores to increase service levels during the test and thereby to minimize the negative impacts of demand censoring. When sales timing information is observable, the retailer optimizes learning by maximizing the number of sales during the test period without regard to stockouts in individual stores. In a numerical study, we show that heuristics motivated by our analyses are near-optimal and that inefficient allocations can considerably reduce the learning value of the merchandise test. We also examine the interplay between the retailer's learning incentive and the natural incentives brought by fixed costs and profits earned during the test itself. We find that that it is sufficient for the retailer to consider only the learning incentive when the main selling period is relatively long compared with the testing period.

The Effects of the Correlation of Electric Materials on Forecasting and Stock Control

Forecasting and stock control play an important role in the electric companies because outstanding forecasting and stock control increase service level obviously and decrease stock cost effectively. However, the majority of the electric materials are intermittent demand, resulting in poor forecasting and stock control performance. Therefore, exploring the reasons that affect forecasting performance and stock control is necessary. This paper explores the effects of the correlation of intermittent electric materials on forecasting and stock control. First, we divide the correlation into three categories: autocorrelation in demand sizes, autocorrelation in intervals and cross-correlation between demand size and interval. Forecasting by SBA approach and using periodic dynamic inventory strategy (T, S) to control stock, exploring the effects of these three correlations on forecast accuracy, stock cost and service level. The data shows that correlations of electric materials affect their forecasting and stock control, which will help company find more accurate forecast approach and lower the cost of stock in the future.

Фактори формування та розвитку логістичного транспортно-експедиційного обслуговування

Мета: Транспортно-експедиційне обслуговування є ключовою ланкою системи переміщення вантажів і передбачає розвиток численних сервісних послуг. Надання транспортними підприємствами нових додаткових та нетрадиційних послуг вантажовласникам дозволить розширити коло їхніх клієнтів, збільшити прибуток останніх від реалізації продукції, полегшити і прискорити впровадження нових транспортних технологій, підвищити стабільність та міцність зв’язків на ринку транспортних послуг. Методи: Сформульовані основні вимоги, яким має відповідати сучасне транспортно-експедиційне обслуговування. Управління транспортним обслуговуванням має базуватися на логістичній концепції та її методах, виходити з комплексної оптимізації ресурсів транспортних компаній та вантажовласників, а також інших учасників системи постачання. Оптимізація такого просторово-часового ланцюга, навіть за участю експедиторів-транспортних посередників, являє собою складне науково-практичне завдання. Результати: Запропоновані напрями розвитку додаткових і нетрадиційних послуг у транспортно-експедиційному обслуговуванні вантажопотоків, що надасть можливість забезпечити скорочення часу на транспортування та підвищити рівень сервісу. Обговорення: У загальній схемі постачання продукції до споживачів міститься значна кількість ланок – конкретних суб’єктів господарювання, кожний з яких, вирішуючи загальну транспортно-розподільчу задачу, має власну конкурентну стратегію. Тому важливим є аналіз не тільки становища господарюючих суб’єктів на ринку, й функцій і можливостей їх взаємодії у головних системних задачах транспортно-експедиційного обслуговування, якісного та ефективного просування вантажних потоків.

The demand and supply of trans-oceanic sea routes: the case of East Asia-US east coast container trade

The Panama Canal expansion will create a new lane of traffic for larger ships, up to 13,000-14,000 TEUs. While trade between Asia and the USA continues to increase, a number of supply factors may impact the canal's position. First, several US and Canadian west coast ports plan to increase service levels. Second, railroads serving the US west coast are examining the possibility of lowering freight rates. Third, the Nicaragua Grand Canal has been proposed and started construction. Fourth, the Suez Canal is expanding operations and may capture some of the traffic currently transiting the Panama Canal. Fifth, multiple Central American countries are considering constructing 'dry canal' rail links between the Pacific and Caribbean coasts. These together may result in an excess supply of trans-oceanic sea services. This paper examines the possible changes in supply and demand with emphasis on East Asia-US container trade.

The Impact of E-Commerce Development on Urban Logistics Sustainability

The purpose of the present paper is to present some sustainable solutions for urban logistics. The approach is to identify the present challenges for urban logistics caused by the increase of freight volumes due to the development of e-commerce. To meet them, companies’ sustainable practices were analyzed and the utilization of new electric power train technologies seem to offer interesting results for reducing carbon emission impacts. Using methods of literature review and experiences from ongoing electric mobile research projects, this paper argues that electric vehicles in urban distribution are a yet underestimated element towards more efficient transport processes—hence economic advantages for companies, towards the reduction of a company’s footprint and even towards an increased service level for the customers.

ADVANCED PLANNING SYSTEMS (APS) FOR SUPPLY CHAIN PLANNING: A CASE STUDY IN DAIRY INDUSTRY

This paper discusses which benefits the use of APS may bring to the S&OP, and the critical factors for the successful implementation. A case study was conducted in a major dairy company in the Brazilian food industry. Positioned in an environment of high market competition and narrow profit margins, the company strives for operational excellence, aimed at inventory reduction and increased service level. This supply chain includes several plants and has recently been through the deployment of an APS to support its S&OP process. The research has identified the main benefits of the APS: greater confidence and accuracy in planning, and better balancing of inventory throughout the supply chain. The deployment project went through specific difficulties that delayed its schedule. The study reinforces the importance of fully support from senior managers and the commitment of the planning staff to meet the challenges of customization and integration of the new system.

Government and company contracts: The effect on service and prices in international airline markets

This paper provides evidence of the impacts of the level of liberalization signed between governments and the type of codeshare agreement signed between airlines in international aviation markets. Our work distils two basic insights: (i) increasing the level of liberalization has a positive effect on service and overshadows the impact of codeshares; (ii) codeshare agreements are heterogeneous in the sense that pooling and royalty agreements generally result in higher airfares whereas block and free sale codeshares are generally associated with lower airfares, although the latter has the most significant impact. Additionally, none of the codeshare agreements impact market frequency. Our results suggest that reducing regulation in the international aviation markets is likely to increase service levels, and that carve outs on non-stop links is unnecessary, rather restrictions should be imposed on horizontal contracts such as the type of codeshare agreement signed by airlines.

The value of fourth-party logistics services in the humanitarian supply chain

Purpose– The purpose of this paper is to identify the value of fourth-party logistics (4PL) services in a humanitarian supply chain. Furthermore, it shows a framework for a fourth-party humanitarian logistics concept.Design/methodology/approach– The research paper presents a framework of fourth-party humanitarian logistics based on the four core components described by Christopher (2005) which was evaluated with a nonlinear approach called analytical hierarchy process (AHP). The AHP method explores qualitative and quantitative decision-making criteria in case of solving multi-attribute and complex problems. In total, seven experts from academia and practice have contributed to this research, resulting in a better understanding of the decisive needs of humanitarian supply chain actors for implementing and integrating a 4PL concept.Findings– The research shows an increased value for humanitarian supply chain actors of establishing a 4PL concept. The results present a positive influence of 4PL in complex disasters environments and provide key drivers for increasing and simplifying collaboration between the humanitarian supply chain actors.Research limitations/implications– Future research has to consider different disaster types and needs to further emphasize the added value for beneficiaries of implementing a 4PL concept in a humanitarian supply chain environment. Further research should preferably also consider case studies in order to analyse challenges, drawbacks and benefits of this concept (qualitative and quantitative factors) in a real-life humanitarian supply chain setting.Practical implications– The research offers managerial insights into the use of a 4PL concept in the humanitarian supply chain environment to improve efficiency due to an improved collaboration between the humanitarian supply chain actors.Originality/value– The research paper investigates an under-researched topic in the humanitarian supply chain environment. For humanitarian supply chain actors outsourcing their activities to a 4PL service provider could secure collaboration, increase service levels as well as efficiency and therefore create additional value.

Lean production system design for fishing net manufacturing using lean principles and simulation optimization

Value stream mapping (VSM) is a useful tool for describing the manufacturing state, especially for distinguishing between those activities that add value and those that do not. It can help in eliminating non-value activities and reducing the work in process (WIP) and thereby increase the service level. This research follows the guidelines for designing future state VSM. These guidelines consist of five factors which can be changed simply, without any investment. These five factors are (1) production unit; (2) pacemaker process; (3) number of batches; (4) production sequence; and (5) supermarket size. The five factors are applied to a fishing net manufacturing system. Using experimental design and a simulation optimizing tool, the five factors are optimized. The results show that the future state maps can increase service level and reduce WIP by at least 29.41% and 33.92% respectively. For the present study, the lean principles are innovatively adopted in solving a fishing net manufacturing system which is not a well-addressed problem in literature. In light of the promising empirical results, the proposed methodologies are also readily applicable to similar industries.

The optimization of total laboratory automation by simulation of a pull-strategy.

Laboratory results are essential for physicians to diagnose medical conditions. Because of the critical role of medical laboratories, an increasing number of hospitals use total laboratory automation (TLA) to improve laboratory performance. Although the benefits of TLA are well documented, systems occasionally become congested, particularly when hospitals face peak demand. This study optimizes TLA operations. Firstly, value stream mapping (VSM) is used to identify the non-value-added time. Subsequently, batch processing control and parallel scheduling rules are devised and a pull mechanism that comprises a constant work-in-process (CONWIP) is proposed. Simulation optimization is then used to optimize the design parameters and to ensure a small inventory and a shorter average cycle time (CT). For empirical illustration, this approach is applied to a real case. The proposed methodology significantly improves the efficiency of laboratory work and leads to a reduction in patient waiting times and increased service level.

An Evaluation of the impacts of rural Guide plans on rural development from the villagers' viewpoints (Case study: Mylas and Sardasht Districts, Lordegan County)

One of the guidelines of development that in first decode after Islamic Iran revolution, to accessing to development is rural area, prepared and implemented, is physical planning projects that as the most important official document and legal of the development of one village in our country is considered and has a place like place of urban collector and physical planning projects for village. But in addition of doing a large amount of investments, evaluation about this project (rural physical planning project) was limited and low. Today physical planning projects being considered as an important tool for managing of rural development. In other hand this projects have been prepared for the development of rural areas and villages in the country.Obviously, assessing the effectiveness of implementation in physical planning projects will be effective in creating a context for logical and practical decision making. The goal of this present study is evaluating the effects of physical planning projects in Milas and Sardasht Rural districts, Lordegan Township. The study sample composed of households living in Milas and Sardasht Rural districts that physical planning projects has been implemented in their villages (N=3197). To determine the number of samples, using Cochran formula, and 190 households were randomly selected for sampling. Research instrument is the questionnaire. Face validity was confirmed by experts and its reliability by performing pre-test and analysis of the questionnaire data and the calculation of Cranach's alpha coefficient (0.857) were approved. Research instrument is questionnaire. The result shows that, in general, households of villages have little knowledge of the nature and design of the project, but they have been effective of Proper implementation for improving the lives of its proper implementation, increasing service levels, increasing interest and attract of people to live in their village.

농촌테마공원 이용객의 선택속성에 대한 중요도와 만족도 분석 - 안성팜랜드를 중심으로 -

This study is intended to examine the perception of importance-satisfaction in selective properties of rural theme park with the users and to suggest operation method and implications for rural theme parks which are being built on a nation-wide basis. The study results are as follows: First, the results from the analysis on importance-satisfaction in the selective properties showed that both attractiveness of natural landscape and excellence of surrounding environment are high. Second, the t-test with matched samples for importance-satisfaction showed that there were significant statistical differences in all items, and the users rated satisfaction lower than the importance. Third, IPA results showed that the items such as diversity of festival event, accessibility and convenience of public transportation, appropriateness of expense and kindness in service appeared in the 2nd quadrant 'direction of concentrated efforts'Therefore, this study was able to identify the perception of importance-satisfaction among the users of rural theme parks. The study findings suggest that it is necessary to preserve surrounding natural environment, ensure appropriate pricing, introduce events and increase service level in constructing and operating rural theme parks.

SIMULATION, ANALYSIS AND OPTIMIZATION OF CONTAINER TERMINALS PROCESSES

The freight logistics includes all the processes needed to supply industry, retailers and wholesalers and final customers with goods. Such processes generate a flow of goods that, in the global supply chain, mainly relies on the activities carried out within worldwide container terminals. In this paper, the authors present a simulation model of a real container terminal. After some preliminary analyses, the simulation model is first used with Design of Experiments and Analysis of Variance to investigate the effects of different resources allocations (i.e., number of forklifts and tractors) and some parameters (i.e., inter-arrival times, container unloading time) on the container terminal performances in terms of total number of handled containers per day. Then, based on the results achieved through the Design of Experiments and Analysis of Variance, the simulation model is used with genetic algorithms to carry out a range allocation optimization on berth assignment to incoming ships and number of tractors serving each quay crane. The aim of the optimization is the minimization of the average time spent by each ship in the port area (decreasing, as consequence, costs and increasing service level provided to final customers).

Integration of Just In Time (JIT) Inventory in Outpatient Pharmacy Information Systems

With the implementation of the recent Healthcare Reform Act and the increased scrutiny on the soaring costs of healthcare, medical plans are looking for ways to optimize workflows and reduce costs. Titan Healthcare is a large non-profit integrated healthcare company located in Arizona, New Mexico, Nevada, Colorado, and Texas. They provide health insurance coverage, and a broad range of comprehensive health care services. Titan Healthcare is engrossed to employ the best strategies to close performance gaps and efficiently manage their operations. To help improve their pharmacy operations, they are seeking to design and implement a new Outpatient Pharmacy Information System which will handle both dispensing and inventory functionality. From a pharmacy inventory perspective, expectations for the system are to significantly reduce inventory costs and increase service levels to their members. Titan Healthcare is currently exploring options for designing the right Outpatient Pharmacy Inventory Management System for its operations.

Modelo tecnológico para el desarrollo de proyectos logísticos usando Lean Six Sigma

This article describes an approach proposed by the authors for the purpose of providing guid-ance to companies with regards to improvements of their logistic performance viewed from the perspective of increasing service levels and reducing costs. To this end, the following concepts were used: supply chain, logistics, lean manufacturing, six sigma, and lean six sigma. The proposed methodology for developing the model is the dmaic (i.e. Define, Measure, Analyze, Improve, and Control) methodology which is assisted by various tools selected for each individual phase. These tools are used for eliminating waste from flows and operations, lowering delivery times, reducing process variance, and increasing value.

Incentive issues in performance-based outsourcing contracts in the UK defence industry: a simulation study

Traditional outsourcing literature has claimed gains for the customer in terms of quality and costs. However, such gains are illusory in outsourcing of high-risk, complex tasks. The use of contracts and governance mechanisms for handling complex procurements is essential in obtaining rewards from outsourcing. Powerful incentives and risks are normally used in industrial service contracts to transfer risks to measure compliance with performance measures. The availability contracts for complex engineering services provision are forms of outsourcing contracts that transfer resources from government to external service providers on a substantial scale. The change moves the contractor role from creating resources to managing resources. Such role change mandates collaboration with customers and suppliers in supply/value chains. The management task is then perceived in terms of linking and optimising alignments rather than increasing service levels. Incentive design is one mechanism for linking the coordination of resources required in availability contracting to the business model. This article studies the impacts of agreed contract type and incentive mechanism on the customer and service provider profits using agent-based discrete event simulation model under multiple risk sharing scenarios.

Towards product-service systems modelling: a quest for dynamic behaviour and model parameters

The product-service system (PSS) is an emerging manufacturing paradigm embracing the increased value of offering through the integration of products and services as a basis of competitive strategy. The PSS has various characteristics beyond the traditional product-selling businesses as a result of intense customer interactions and increased service levels. These interactions can further trigger the dynamic behaviour of the system and consequently can cause uncertainties across the whole network of manufacturers and customers. The work described in this paper is part of a research project whose overall goal is to provide the manufacturing system designers with better decision making capabilities to effectively shift their manufacturing businesses from product selling to PSS offering. In particular, this paper aims to capture typical characteristics exhibited by manufacturers who have adopted PSS, to better understand their dynamic behaviour, to have appreciation of the existing techniques and tools for modelling PSS, and ultimately to search for PSS model parameters. The main contribution of this paper is the collation of key model parameters that should be considered for an effective PSS modelling. The paper also identifies strengths and weaknesses within the existing PSS modelling work, and highlights the opportunities for future research agenda.

Supply Chains Competition under Uncertainty Concerning Player’s Strategies and Customer Choice Behavior: A Generalized Nash Game Approach

Decision makers in a supply chain confront two main sources of uncertainty in market environment including uncertainty about customers purchasing behaviors and rival chains strategies. Focusing on competition between two supply chains, it is considered that each customer as an independent player selects products of these chains based on random utility model. Similar to quantal response equilibrium approach, we take account of customer rationality as an exogenous parameter. Moreover, it is assumed that decision makers in a supply chain can perceive an estimation of rival strategies about price and service level formulated in the model by fuzzy strategies. In the competition model, chain’s decision makers consider a subjective probability for wining each customer which is formulated by coupled constraints. These constraints connect chains strategies regarding to each customer and yield a generalized Nash equilibrium problem. Since price cutting and increasing service level are main responses to rival supply chain, after calculating optimal strategies, we show that more efficient responses depend on customer preferences.

PTH-077 Screening colonoscopy in patients with a family history of colorectal cancer: time to tighten our practice?: Abstract PTH-077

<h3>Introduction</h3> With 18 weeks pathways as the maximum for NHS treatment, pressures on initial diagnostic intervention has increased enormously. Endoscopy is a key part of the gastroenterology service and is the main diagnostic tool for gastrointestinal cancers. At the same time busy units have now embraced the National Bowel cancer Screening programme, providing additional services and high quality through the Global Rating Scale. Increased service levels, and high demand for rapid investigation are focusing minds on efficient effective practice. In our departments we evaluate our practice and screening colonoscopy has been a recent area of analysis. <h3>Methods</h3> We retrospectively interrogated endoscopy databases in two typical district general hospitals. We selected out colonoscopic investigations with a “family history of colorectal cancer” as the only indication. Data on age, polyp detection, cancer detection, and site were recorded. A sampling of approximately 10% of the notes was undertaken to understand the indication, and reason for colonoscopy. These data were scrutinised against the gold standard British Society of Gastroenterology guidelines, and publications leading to this. Our population findings were compared using a χ² statistic. <h3>Results</h3> We analysed 298 colonoscopies, 49 patients (16%) had polyps detected, and 1 patient had a rectal cancer. Age ranged from 15 to 83 years old. 55 polyps were detected, 16 rectal, 23 sigmoid, 2 descending, 3 transverse, 6 ascending, and 5 caecal polyps. Modelling population finding from the BSG guidelines, we would expect a polyp detection rate of 24%. Our findings demonstrate a significantly different outcome, and confirms our practice or population is significantly different from the populations informing the guidelines. (χ² statistic 7.73, 1 degree of freedom, two tailed p=0.005). Twenty-four referral letters were assessed as an indicative sample of criteria leading to colonoscopy. Only 11 (46%) documented family history consistent with strict adherence to BSG guidelines, suggesting at least our practices contribute to the differing outcomes (Abstract 077). <h3>Conclusion</h3> Screening for a family history of bowel cancer detects significant numbers of adenomatous polyps and cancer at an earlier stage than symptomatic referral. In our population pathology was found in 17%, significantly lower than the populations informing current BSG guidelines. Strict adherence to BSG guidelines may reduce the colonoscopy workload by 33%, and free up 25 colonoscopy lists. These finding across 2 separate hospitals may indicate a wider application in other regions.

A Multi-Agent Platform Design for Adaptive Networks of Intelligent Production Schedulers

The paper describes an approach of creating innovative knowledge-based multi-agent platform for the developing next-generation of intelligent schedulers for the top Internet services and sensor networks for manufacturing enterprises. As an example the implementation of this approach is described at small machinery manufacturing enterprise. These developments allow to increase service level for clients, reduce costs and delivery time, and improve scalability, performance and reliability of new generation of automated scheduling services.