Outbound Logistics Research Articles

Performance analysis of inventory models, distribution and transportation networks in forward supply chain: a theoretical approach

In the past decade, multiple researchers have focussed on various techniques and models of finished goods inventory, distribution and transportation. This paper emphasises the role of these processes in forward supply chain, according to their requirements and needs as they may occur, to expedite the process. This research is based on a qualitative approach. The study strives to find out and deduce the different segments of forward supply chain and the inter-relation between them. This paper gives a precise description of the usage of tools and techniques that may be most appropriate for the specific combination of multiple situations of forward supply chain of particular firm. As handling finished goods inventory is the initial step of forward supply chain processes and it is the most significant and extravagant factor in an industry as it amounts to 50% of the total capital investment. Then comes the distribution; another driver, which is the main component of contributing to a company's effectiveness and finally while transportation plays an integral part from the beginning to the end of a supply chain. This research paper is implied to the forward supply chain processes for which finished goods inventory and outbound logistics have been considered. The paper furnishes some realistic suggestions for the inventory, distribution and transportation managers regarding the selection of a feasible model as per their system requirements.

Estimating the impact of size of the firm on net operating cycle and its elements in the context of Indian Manufacturing Industries

Net operating cycle (NOC) is very important in measuring the overall operational efficiency of the firm. The elements of Net operating cycle [i.e. Inventory Conversion Period (ICP), Accounts Receivable Period (ARP) and Accounts Payable Period (APP)] also represent efficiency related to in-house and out-bound activities of the firm. NOC metric is an important measure as it bridges across inbound material activities with suppliers, through manufacturing operations, and the outbound logistics and sales activities with customers. In this study an effort has been made to find the impact of NOC and its components (i.e. ARP, ICP and APP) on size of the firm by investigating a sample of 4322 manufacturing firms over a period of 10 years (i.e. 2002–2003 to 2011–2012).

Influence of Sustainable Logistics on Operational Performance of Timber Processing Firms in Nakuru County

This study was informed by the literature gap on the relationship between sustainable logistics and operational performance, especially among processing firms in Kenya. It aimed at establishing the influence of sustainable logistics on operational performance of timber processing firms in Nakuru County. Data for the study was collected from Comply Company. This was a cross sectional survey where data was collected at single point in time for the purpose of the study. The study involved employees in procurement, finance and marketing departments of Comply Company as respondents. Data for the study were collected by aid of structured questionnaires that were checked for validity and reliability before actual data collection. Collected data were coded, cleared and analysis through statistical packages for social sciences (SPSS). Regression analysis with one tailed t-test ware used to establish the relationship between Sustainable Inbound Logistics, Sustainable Outbound Logistics and Operational Performance. The findings revealed that there is significant positive influence of Sustainable Inbound Logistics and Sustainable Outbound Logistics on Operational Performance. The study recommends that manufacturing and processing organizations should consider sustainable logistics activities in their operations if they are to achieve improved operational performance. The study further suggests that study be conducted to explore on sustainable logistics activities that would be used to achieve operations improvement in service industry.

Realigning Value Chain Concept towards Destination Branding: Zimbabwe Tourism Destination Reality

The study analysed the value chain model that was used to analyse the sustainable competitive advantage of manufacturing businesses by Porter in 1985. The processes of the model which are both primary and secondary variables were matched and compared to the tourism destination processes. This was done in order to design a specific value chain model that can be used by a tourism destination so as to improve brand equity. The study therefore analysed Zimbabwe as a tourism destination which needs to improve its brand equity through an effective tourism value chain. The study used a sequential mixed method in order to establish data from respondents. It started with a qualitative design whereby by Zimbabwe tourism destination processes were established through in-depth interviews from various experts in the industry. The identified variables were local people, natural resources and destination marketers. Also the respondents agreed that the secondary factors for a Zimbabwe tourism destination value chain include finance, skilled human resources, infrastructure, sustainable practices and global partnerships. The relationship of Zimbabwe tourism destination variables to Porter’s primary value chain activities were identified through a quantitative design using survey questionnaires. The results of the study showed that the inbound logistics is related to local people, operations to natural resources and outbound logistics to destination marketers. The study recommended a value chain model specifically for tourism destinations that comprise of local people, natural resources and destination marketers as the primary activities. An effective mix of the tourism primary factors and secondary factors (finance, infrastructure, skilled human resources, sustainable practices and global partners) will lead to improved brand equity for the Zimbabwe tourism destination.

A New Approach for License Plate Detection and Localization: Between Reality and Applicability

<p>License Plate Detection and Localization (LPDL) is known to have become one of the most progressive and growing areas of study in the field of Intelligent Traffic Management System (ITMS). LPDL provides assistance by being able to specifically locate a vehicle’s number plate which is an essential part of ITMS, that is used for automatic road tax collection, traffic signals defilement implementation, borders and payments barriers and to monitor unlike activities. Organizations can deploy the number plate detection and recognition system to track their vehicles and to monitor each of them in their vital business activities like inbound and outbound logistics, find the exact location of their vehicles and organize entrance management. A competent algorithm is proposed in this paper for number plate detection and localization based on segmentation and morphological operators. Thus, the proposed algorithm it works on enhancing the quality of the image by applying morphological operators afterwards to segment out license plate from the captured image. No assumptions about the license plate color, style of font, size of text and type of material the plate is made of. The results reveal that the proposed algorithm works perfectly on all kinds of license plates with 93.43% efficiency rate. </p>

NEW TRENDS AND CHELLENGES IN AUTOMOTIVE INDUSTRY LO GISTICS OPERATIONS

This paper lays out the main features of the global automotive industry and identifies several important trends. Logistics operations (inbound and outbound) in the automotive supply chain are complex and account for large expenses and therefore are segments in the value chainwhere improvements can be made. Better coordination between inbound and outbound logistics contributes to optimising the supply chains, to reducing inventories and to responding to consumer requests. As economies grow, the competition shifts towards brand image and customisation and here the speed and reliability of logistics operations becomes a critical elements.

Finished-vehicle transporter routing problem solved by loading pattern discovery

This work addresses a new transportation problem in outbound logistics in the automobile industry: the finished-vehicle transporter routing problem (FVTRP). The FVTRP is a practical routing problem with loading constraints, and it assumes that dealers have deterministic demands for finished vehicles that have three-dimensional irregular shapes. The problem solution will identify optimal routes while satisfying demands. In terms of complex packing, finished vehicles are not directly loaded into the spaces of transporters; instead, loading patterns matching finished vehicles with transporters are identified first by mining successful loading records through virtual and manual loading test procedures, such that the packing problem is practically solved with the help of a procedure to discover loading patterns. This work proposes a mixed-integer linear programming (MILP) model for the FVTRP considering loading patterns. As a special class of routing models, the FVTRP is typically difficult to solve within a manageable computing time. Thus, an evolutionary algorithm is designed to solve the FVTRP. Comparisons of the proposed algorithm and a commercial MILP solver demonstrate that the proposed algorithm is more effective in solving medium- and large-scale problems. The proposed scheme for addressing the FVTRP is illustrated with an example and tested with benchmark instances that are derived from well-studied vehicle routing datasets.

Business Process Modeling for Domain Outbound Logistics System: Analytic Perspective with BPMN 2.0

Among different Business Process Management strategies and methodologies, one common feature is to captureexisting processes and representing the new processes adequately. Business Process Modellin ...

Switching Transport Modes to Meet Voluntary Carbon Emission Targets

The transport sector is the second-largest carbon emissions contributor in Europe, and its emissions continue to increase. Many producers are committing themselves to reducing transport emissions voluntarily, possibly in anticipation of increasing transport prices. In this paper we study a producer that has outsourced transport and has decided to cap its carbon emissions from outbound logistics for a group of customers. Setting an emission constraint for a group of customers allows for taking advantage of the portfolio effect. We focus on reducing emissions by switching transport modes within an existing network, because this has a large impact on emissions. In addition, the company sets the sales prices, which influence demand. The problem is solved by decomposing the multiproduct problem into several single-product problems, which we then analyze separately. Using the single-product solutions, we create an efficient frontier that reflects the trade-off between total carbon emissions and the total profit. It is observed that a diminishing rate of return applies in reducing emissions by switching transport modes. In a case study, we apply our method to a producer of bulk liquids and find that emissions can be reduced by 10% at only a 0.7% increase in total logistics cost.

An Integrated Load-Planning Algorithm for Outbound Logistics at Webb Wheel

We present an integrated model for simultaneous optimization of the loading and routing decisions associated with an automotive supplier’s outbound supply chain. The supplier, Webb Wheel (WW), is a manufacturer of brake drums, rotors, hubs, and spoke wheels. WW accepts new orders from customers each day. Given sufficient inventory, it combines these orders into loads, releases them based on various dispatch criteria (e.g., truck-utilization, route-utilization, or penalty-based dispatch policies) and due-date considerations, and ships them in truckloads, less-than-truckloads, and containers. Dynamically changing demand information, inventory rationing, inventory interactions among orders, and lead-time considerations are some of the challenging aspects of the problem. Our optimization model is based on the decomposition of the problem into assignment and routing subproblems. The assignment subproblem determines the transportation mode and carrier choices, while considering total transportation costs. These costs depend on a variety of factors, including destination, number of drop locations on the route, and needs of customers on the route. Given the customer clusters and transportation modes from the assignment subproblem, the routing subproblem determines the sequence of drops and the true cost of the shipment using a modified traveling salesman problem. A scalable database with a graphical user interface supports the optimization model. We test our algorithm using four months of WW data and compare these data to the company’s practice. Our results demonstrate the impact of transportation mode-specific capacities, customer locations, inventory availabilities, and due-date restrictions on outbound logistics costs. Since implementing our load-planning algorithm, WW has achieved cost savings of 4.4 percent over its previous load-planning process.

Using CNOs in international marketing and outbound logistics

AbstractThe paper analyses if the collaborative networked organisations (CNO) concept can bring advantages in organising the international outbound logistics for SMEs. In the manufacturing domain, the European CNO research has identified benefits from using the concept in traditional supply chains, collaboration in various inbound networks and business ecosystems. Less focus has been on outbound logistics for delivering products and related service to customers at remote locations. The analysis is based on conducted company interviews. The interviewed companies have a good record of successful international operations. The used international delivery models are mapped into taxonomy of well-known outbound logistics models. The paper proposes a customer interface network model, based on the CNO concept to tackle problems encountered.

Contribution of supply chain to corporate strategy: a case study in agriculture machinery industry

The strategy-developing unit of analysis has shifted from industry (industry structure view) to firm’s unique characteristics (resource-based view) to dyad routine and processes (relational view) to the current network relationships (strategic network) view. As a result, the supply chains, due to their cross-functional and cross-organisational nature, are getting promoted from being merely operational and tactical concerns to more strategic ones and therefore becoming a major stakeholder in corporate strategy. This change is significant particularly in industries that are classified as low clock-speed and complex product industries. In this article, a conceptual framework for investigating the contribution of supply chain management to corporate strategy is developed and applied in agriculture machinery industry. The results indicate that supply chain contribution to the corporate strategy is significant in multi-business firms that are characterised by low clock-speed industry, high reciprocal interdependence between OEM and immediate suppliers, related diversification strategy, focus on economy of scale advantage, and that are looking for synergies such as vertical integration, centralised procurement, asset improvement and centralised inbound and outbound logistics.

Measuring Environmental Performance across a Green Supply Chain: A Managerial Overview of Environmental Indicators

The concept of green supply chains is now accepted in many corporate organizations in Asia. Since the early nineties, when industry became aware of the increasing relevance of sustainable development, many business enterprises in Asia have adopted environmental initiatives as an integral part of their business practices. In time these organizations came to realize that the environmental initiatives needed to encompass not only the organization's own business practices but also the entire stretch of operations across the supply chain. In other words, they felt the need to include the employees, suppliers, customers, waste handlers, and other business partners in the greening process (Bacallan, 2000). Thus, an integrated supply chain approach was called for. Such an approach should be able to identify the environmental aspects at every stage, assess the environmental impacts associated with these aspects, prioritize them, and design action plans to mitigate their adverse effects on the environment if any. An integrated green supply chain approach would take into consideration the inbound logistics phase of the supply chain, the production or internal supply chain, the outbound logistics phase, and the reverse logistics phase (Rao & Holt, 2005; Sarkis, 1999; Seuring & Muller, 2007). For many organizations in Asia, the green supply chain approach has also emerged as a way to demonstrate their commitment to sustainability (Seuring et al., 2008). However, there is a continuous need to measure and monitor the extent to which environmental performance is actually achieved. To assess this performance, a system of indicators across the supply chain is proposed, which is computationally easy to implement at the industry level. To demonstrate that the system of environmental indicators does measure performance, an empirical approach is adopted to test whether the system correlates with the four constructs of environmental sustainability: resource conservation, energy efficiency, reduction of hazardous waste, and reduction of greenhouse gas emissions (Vachon & Mao, 2008). In order to check these linkages of environmental indicators to the constituents of environmental performance, four multiple regression models were run. In the first model, the dependent variable was resource conservation, the independent predictor variables being the 20 environmental indicators grouped under the four constructs: Inbound logistics, production or internal logistics, outbound logistics, and reverse logistics. In the second, third, and fourth models, the dependent variables were energy efficiency, reduction of hazardous waste, and minimization of emission of greenhouse gases, respectively. Upon running the regression models, the models for resource conservation, reduction of hazardous waste, and reduction of emission of greenhouse gases were found to be significant at 5 percent significance level while the model for energy efficiency was significant at 10 percent level.

The structurational model of technology: The case of dow chemical's RFID tracking system for hazardous materials

In seeking the environmental sustainability in its outbound logistics operations, Dow Chemicals Company deployed an radio frequency identification (RFID) system to track shipments of its hazardous chemical products. This qualitative case study uses content analysis and the application of Orlikowski's theoretical framework called structurational model of technology based on Giddens' theory of structuration. Applying this theoretical framework results in a better understanding of how information technology (IT) interacts with organizational forces and vice versa.

Decision Support System for Real Time Vehicle Routing in Indian Dairy Industry: A Case Study

In today’s highly competitive and demanding environment, the pressure on both public and private organizations is to achieve a better way to deliver values to end customers. There has been a growing recognition that the two goals, cost reduction and customer service are achieved through Logistics and Supply Chain Management (SCM). Transportation of goods continues an important part of in-bound as well as outbound logistics of Supply Chain Management (SCM). Efficient distribution of goods and services is of great importance in today’s competitive market, because transportation constitutes a considerable portion of the purchase price of most products or services. Vehicle routing is considered as an important resource in a distribution logistics management system. Effective plan and control of vehicle operation can significantly reduce the cost of physical distribution system. To overcome the challenges of changing environment, the scheme of vehicle control of a physical distribution system should be dynamic. Thus India has become the top milk producing country in the world. This study addresses the vehicle routing aspect of distribution logistics in Sangam dairy supply chain of Guntur district in Andhra Pradesh. The problem is viewed as Vehicle Routing Problem with Backhauls (VRPB) and a mathematical model is developed with the consideration of various practical constraints. Moreover, a decision support system is developed for dynamic VRPB, which would help the manager in making operational and tactical decisions.

Vehicle Routing in Multi-Echelon Distribution Systems with Cross-Docking: A Systematic Lexical-Metanarrative Analysis

Multi-echelon distribution systems and more precisely, optimization of LTL routes related to them is one of the most popular subjects in the last 5 years of vehicle routing research. Although a plethora of models, methods and visions is found, it is still difficult to compare them because they use different terminologies and some authors insist on the fact there are a multitude of close but different problems. This paper presents the main concepts of multi-echelon distribution with cross-docks and the notation standards for cost optimization in this field on an attempt of unification, in order to provide a guide to researchers and practitioners. A literature review is first presented, in order to list the main problems and methods that are found in the literature. Then, by a hybrid systematic analysis method combining a lexical and a meta-narrative analysis, the main concepts and standards of multi-echelon based vehicle routing optimization problems are presented. A theoretical model as well as a classification of solving methods, both exact and heuristic, is presented. Finally, research paths are proposed to support both scientists and outbound logistics practitioners.

Identifying business value using the RFID e-Valuation Framework

In this paper, we develop the RFID e-Valuation Framework to help managers identify the value proposition from using RFID. The framework is based on three concepts. First, firms can apply RFID along five dimension of commerce. Specifically, by using various modes of interaction, firms compete over both time and distance in order to provide some product or service through a chain of relationships eventually ending with the end customer. Second, new investments in RFID are typically justified by generating efficiency, effectiveness, and/or strategic benefits. Third, RFID can be applied to four different structural settings across the value chain including inbound logistics, internal operations, outbound logistics, and marketing and sales. By mapping the five dimensions of commerce and the three types of justification, we have developed the RFID e-Valuation Grid which can then be applied to the four structural settings to see where RFID can generate business value. We illustrate usage of the framework by applying it to two examples of asset management in a hospital setting and tracking food produce through the cold chain.

Mobile learning usability comparison between the US and Chinese online education

The objective of this paper was to compare usability features that were crucial in mobile learning between US and Chinese online education. Specifically, a mobile learning value increasing model with five modules was developed. Then, a mobile learning questionnaire was mapped from this model focusing on the usability features. Data were collected from 266 subjects in the USA and China. Results showed that both groups agree that six M-learning modules are all important to assist M-learning. Mobile learning service is the most important while M-learning outbound logistics the least for both groups. Further, mobile learning operation only indirectly affects M-learning service, and mobile learning service is directly affected by M-learning marketing in both groups. The results will assist mobile learning system (re)design to improve M-learning performance.

An integrated supply chain model for new products with imprecise production and supply under scenario dependent fuzzy random demand

In the present day business scenario, instant changes in market demand, different source of materials and manufacturing technologies force many companies to change their supply chain planning in order to tackle the real-world uncertainty. The purpose of this paper is to develop a multi-objective two-stage stochastic programming supply chain model that incorporates imprecise production rate and supplier capacity under scenario dependent fuzzy random demand associated with new product supply chains. The objectives are to maximise the supply chain profit, achieve desired service level and minimise financial risk. The proposed model allows simultaneous determination of optimum supply chain design, procurement and production quantities across the different plants, and trade-offs between inventory and transportation modes for both inbound and outbound logistics. Analogous to chance constraints, we have used the possibility measure to quantify the demand uncertainties and the model is solved using fuzzy linear programming approach. An illustration is presented to demonstrate the effectiveness of the proposed model. Sensitivity analysis is performed for maximisation of the supply chain profit with respect to different confidence level of service, risk and possibility measure. It is found that when one considers the service level and risk as robustness measure the variability in profit reduces.

Multi objective outbound logistics network design for a manufacturing supply chain

Outbound logistics network (OLN) in the downstream supply chain of a firm plays a dominant role in the success or failure of that firm. This paper proposes the design of a hybrid and flexible OLN in multi objective context. The proposed distribution network for a manufacturing supply chain consists of a set of customer zones (CZs) at known locations with known demands being served by a set of potential manufacturing plants, a set of potential central distribution centers (CDCs), and a set of potential regional distribution centers (RDCs). Three variants of a single product classified based on nature of demand are supplied to CZs through three different distribution channels. The decision variables include number of plants, CDCs, RDCs, and quantities of each variant of product delivered to CZs through a designated distribution channel. The goal is to design the network with multiple objectives so as to minimize the total cost, maximize the unit fill rates, and maximize the resource utilization of the facilities in the network. The problem is formulated as a mixed integer linear programming problem and a multiobjective genetic algorithm (MOGA) called non-dominated sorting genetic algorithm--II (NSGA-II) is employed to solve the resulting NP-hard combinatorial optimization problem. Computational experiments conducted on randomly generated data sets are presented and analyzed showing the effectiveness of the solution algorithm for the proposed network.