Hoạt Động , Hậu Cần Và Quản Lý Chuỗi Cung Ứng

Henk ZijmDepartment of Industrial Engineering and Business Information Systems University of Twente Enschede, Overijssel, The Netherlands Matthias Klumpp FOM University of Applied Scienc

Series Editors: Uwe Clausen · Michael ten Hompel · Robert de Souza

Lecture Notes in Logistics

Series editors

Uwe Clausen, Dortmund, Germany

Michael ten Hompel, Dortmund, GermanyRobert de Souza, Singapore, Singapore

Alberto Regattieri • Sunderesh Heragu Editors

Operations, Logistics and Supply Chain

Management

123

Henk Zijm

Department of Industrial Engineering and

Business Information Systems

University of Twente

Enschede, Overijssel, The Netherlands

Matthias Klumpp

FOM University of Applied Sciences

Essen, Nordrhein-Westfalen, Germany

and

University of Duisburg-Essen

Essen, Nordrhein-Westfalen, Germany

Alberto RegattieriDepartment of Industrial EngineeringUniversity of Bologna

Bologna, Italy

Sunderesh HeraguIndustrial Engineering and ManagementOklahoma State University

Stillwater, OK, USA

Lecture Notes in Logistics

https://doi.org/10.1007/978-3-319-92447-2

Library of Congress Control Number: 2018943727

© Springer International Publishing AG, part of Springer Nature 2019

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Part I Introductory Chapters

1 Objectives, Educational Developments and Structure

of the Book 3Matthias Klumpp, Henk Zijm, Sunderesh Heragu

and Alberto Regattieri

2 Perspectives on Operations Management Developments

and Research 15Henk Zijm, Sunderesh Heragu, Matthias Klumpp

and Alberto Regattieri

3 Operations, Logistics and Supply Chain Management:

Definitions and Objectives 27Henk Zijm, Matthias Klumpp, Sunderesh Heragu

and Alberto Regattieri

Part II Key Domains of Supply Chains

4 Purchasing and Supply Management 45Holger Schiele

5 Manufacturing Systems 75Henk Zijm

6 Marketing Concepts and Instruments in Supply Chain

Management 97Thomas Neukirchen, Oliver Gansser and Matthias Klumpp

7 International Trade, Global Supply Chains and Compliance 131Albert W Veenstra

v

Part III Overarching Topics

12 Manufacturing Planning and Control Systems 251Henk Zijm and Alberto Regattieri

13 Packaging Logistics 273Alberto Regattieri, Giulia Santarelli and Francesco Piana

14 Outbound Logistics and Distribution Management 305Matthias Klumpp and Sunderesh Heragu

15 Warehousing 331Sunderesh Heragu

16 Closed Loop Supply Chain Management 353Erwin A van der Laan

Part V Models for Operations, Logistics and Supply Chain

and Leonardo Marrazzini

19 Advanced Production Planning and Scheduling Systems 417Henk Zijm and Marco Schutten

20 Stochastic Inventory Models 441Henk Zijm

21 Transportation Management 469Wouter van Heeswijk, Martijn Mes and Marco Schutten

22 Maintenance Service Logistics 493Joachim Arts, Rob Basten and Geert-Jan van Houtum

Part VI New Developments and Special Topics

23 Additive Manufacturing and Its Impact

on the Supply Chain 521Henk Zijm, Nils Knofius and Matthieu van der Heijden

24 Future Technologies in Intralogistics and Material Handling 545Kai Furmans, Zäzilia Seibold and Andreas Trenkle

25 Supply Chain Security 575Gerwin Zomer

26 Trends in E-commerce, Logistics and Supply Chain

Management 593Gregor Sandhaus

27 Multi-agent Systems 611Martijn Mes and Berry Gerrits

28 Artificial Intelligence Applications 637Matthias Klumpp

29 Advanced Green Logistics Strategies and Technologies 663Tim Gruchmann

30 Automatic Identification Technology 687Michael ten Hompel, Mojtaba Masoudinejad, Omar Bousbiba

and Moritz Roidl

31 The Physical Internet 719Eric Ballot

About the Editors

Henk Zijm is a full professor in Production and Supply Chain Management at theDepartment of Industrial Engineering and Business Information Systems at theUniversity of Twente since 1990 Previously, he has been project manager atPhilips Electronics in Eindhoven, and professor in Operations Management at theEindhoven University of Technology At the University of Twente, he servedamong others as Director of the Centre for Telematics and Information Technology,Dean of the Faculty of Electrical Engineering, Mathematics and Computer Science,and Rector Magnificus (Vice Chancellor) Professor Zijm is also a past president ofISIR (the International Society for Inventory Research, Budapest) In 2010, he wasappointed as scientific director of the Dutch Institute for Advanced Logistics(DINALOG), a national institute responsible for executing the Dutch governmentimposed innovation program on logistics and supply chain management Between

2014 and 2016 he also served as vice-chair of the European Technology Platformfor Logistics, which helps to design roadmaps that drive the Horizon 2020 researchand innovation program in Transport and Logistics.Professor Zijm has publishedmore than 120 articles in international refereed scientific journals and is the (co-)author of three books He has been a consultant to a wide variety of industrialorganisations in the Netherlands and in Europe

Matthias Klumpp is a full professor in logistics at FOM University of AppliedSciences Essen and research group leader in production and logistics at theUniversity of Duisburg-Essen and the Fraunhofer Institute for Material Flow andLogistics in Dortmund (Germany) His research is addressing primarily topicsregarding artificial intelligence and digital business concepts, sustainability as well

as qualification and training in the supply chain and logistics field He has heldseveral visiting and policy positions e.g at the Dalle Molle Institute for ArtificialIntelligence (University of Lugano, Switzerland), University of Twente(Netherlands), European University Institute (Florence School of Regulation) and

ix

for the ESCO Expert Group on Qualification in Logistics for the EuropeanCommission (Brussels, Belgium).

Alberto Regattieri is a full professor in Logistics and Head of the ManagementEngineering Master Course at the University of Bologna (Italy) His currentresearch interests include the optimal design of manufacturing systems, innovativeapproaches to design and manage Supply Chains, Industrial Logistics, control andmaintenance of industrial plants He is/was responsible of several research projects

in co-operation with - and funded by - the European Commission, private andpublic companies, universities and international research centers regarding supplychain and logisticsfields He published more than 170 scientific papers

Sunderesh Heragu is Regents professor and head of the School of IndustrialEngineering and Management at Oklahoma State University where he holds theDonald and Cathey Humphreys Chair Previously, he was the Duthie Chair inEngineering Logistics and Director of the Logistics and Distribution Institute (LoDI)

at the University of Louisville He has also served as Professor at RensselaerPolytechnic Institute, Assistant Professor in State University of New York,Plattsburgh, and held visiting appointments at: State University of New York, Buffalo;Technical University of Eindhoven, the Netherlands; University of Twente, theNetherlands; and IBM’s Thomas J Watson Research Center in Yorktown Heights,

NY He is the author of Facilities Design (now in its 4th edition) and has authored orco-authored over two hundred andfifty articles He has served as Principal investigator

or co-investigator on research projects totaling over $20 million funded by federalagencies such as the Department of Homeland Security, National Science Foundation,Defense Logistics Agency and private companies such as General Electric Dr Heragu

is a Fellow of the Institute of Industrial and Systems Engineers (IISE) and has receivedIISE’s highest research award, the David F Baker Distinguished Research award, aswell as IISE’s Award for Technical Innovation in Industrial Engineering

Contributors

Joachim Arts is an associate professor at the University of Luxembourg Hisresearch interests are in the application of operations research to problems inmaintenance, inventory, and logistics He often collaborates with industrial partnerssuch as the Netherlands Railways, ASML, and Philips He was a visiting scholar atthe MIT Sloan School of Management and the MIT Operations Research Center

He is a recipient of the EURO doctoral dissertation award and a Prins BernhardCultuurfonds Fellow

Eric Ballot is a full professor in Production and Supply Chain Management atMINES ParisTech—PSL He is also director of the Centre de Gestion Scientifiquesince 2017, visiting professor at the University of Hong Kong since 2015 and holdsmany auxiliary positions, including Scientific President of the French urbanlogistics research program, and vice-chair working group of the European

Technology Platform for Logistics (Brussels) His research interest is about supplychain collaboration and efficiency, and he is one of the three cofounders of thePhysical Internet concept.

Rob Basten is an associate professor at the Eindhoven University of Technology.His research focuses on after sales services for capital goods, e.g., maintenanceoptimization and spare parts inventory control He is especially interested in usingnew technologies such as 3D printing for such services He is further active inbehavioral operations management, trying to understand how people and decisionsupport systems can co-create value Research is often performed in cooperationwith industry Rob has been a visiting scholar at the University of Texas at Austinand Rensselaer Polytechnic Institute

Sascha Bioly works at the Forschungszentrum Jülich and is in charge of projectsponsoring for the project executing organization ETN (translated: energy tech-nology sustainability) on behalf of the state of North Rhine-Westphalia He isresponsible for funding numerous research and development projects in thefield ofmobility and logistics in the OP ERDF and coordinates the subsidies made available

by the EU and various ministries of North Rhine-Westphalia

Omar Bousbiba holds a PhD degree in computer science from the UniversityDuisburg-Essen and works at Kostal Dortmund as a software developer on complexelectronic control devices

Marcello Braglia graduated (with distinction) in 1988 in Electronic Engineering atPolitecnico di Milano Since 1995, he has been a Researcher in MechanicalTechnology and Production Systems at the Università degli Studi di Brescia Since

1998, he has been employed as a researcher and since 2002, as a Full Professor, inIndustrial Plants at the Università di Pisa His research activities mainly concernmaintenance, reliability, production planning, lean production, logistics and sta-tistical quality control He is the author of about 180 technical papers published innational and international journals and conference proceedings

Mark S Daskin is the department chair in the Industrial and OperationsEngineering Department at the University of Michigan.He is the author of twobooks and over 80 refereed papers He is a fellow of INFORMS and IISE and hasserved as the editor-in-chief of Transportation Science and IIE Transactions Hewas elected to the US National Academy of Engineering in 2017

J Rod Franklin is the Managing and Academic Director of Executive Educationand Adjunct Professor of Logistics at the Kuehne Logistics University In his rolesProf Franklin oversees the development of academic programs for the University’sExecutive Education organization, teaches classes in innovation, operations, deci-sion and data analysis, game theory, mathematical modeling and critical thinking tograduate students and logistics professionals His research focuses on supply chain

efficiency, sustainable operations, data analytics, the Physical Internet and cation of digital technologies to supply chain management Prof Franklin’s

appli-research has received funding from the European Union, industry, other universitiesand international logistics organizations.

Marco Frosolini graduated in in Mechanical Engineering at the Università di Pisaand obtained a PhD in Mechanical Engineering in 2005 He is currently a researcher

in Industrial Plants within the same University His research activities mainlyconcern equipment maintenance and reliability, production planning, logistics andproject management He is also interested in industrial information systems He isauthor of more than 30 technical papers, published in national and internationaljournals and conference proceedings He is a member of AIDI (NationalAssociation of Academicians on Industrial Plants)

Kai Furmans is the head of the Institute for Material Handling and LogisticSystems (IFL) and full professor at the Karlsruhe Institute of Technology (KIT) Healso served as vice-dean of the department of mechanical engineering from 2006–

2015 Among other functions, he currently is chairman of the scientific advisoryboard of the BVL (the German Logistics Association)

Roberto Gabbrielli graduated with honours in Mechanical Engineering, izing in Energy, at the University of Pisa (Italy) He has a PhD in Energy PowerSystems and is Associate Professor in Industrial Systems Engineering at theDepartment of Civil and Industrial Engineering of the University of Pisa (Italy) Hiscurrent research concerns production planning and control, development of decisionsupport systems for industrial investments, occupational safety, energy saving,energy storage and the reduction of the environmental impact in industrial systems

special-He authored more than 25 papers published in international scientific journals.Oliver Gansser is deputy director of the Institute for Empirical and StatisticalStudies (IFES) at the FOM University of Applied Sciences, Study ProgramEconomics and Management, in Munich He is also a full professor in marketing atthe same university and a member of the board of Access Marketing Management(AMM) e.V His research focuses on behavioral typologies, preference research,communication research, and consumer behavior as well as customer relationshipmanagement

Berry Gerrits is a PhD candidate within the department of Industrial Engineeringand Business Information Systems at the University of Twente, The Netherlands

He holds an MSc in Industrial Engineering (2016) His research interests aretransportation, multi-agent systems, agent-based simulation and supply chainmanagement He is also the founder of Distribute and co-founder of DistributIT.Tim Gruchmann is a PhD candidate at the University of Kassel and holds anacademic position at FOM University of Applied Sciences His research focuses onsustainability and dynamics in supply chains, in particular in the food and auto-motive sector Earlier, he has gained relevant professional experience within theautomotive industry while being responsible for numerous intra- and outbound

logistics projects in Germany and abroad (Hungary, Turkey) for variousjust-in-time supplier modules.

Árni Halldórsson is professor of Supply Chain Management at the Division ofService Management and Logistics, Chalmers University of Technology, Sweden.Árni also holds a position as Professor of Supply Chain Management and SocialResponsibility, Hanken School of Economics, Finland Prior to this, he was atCopenhagen Business School, Denmark, where he completed his PhD, and at theUniversity of Southampton, UK His current research and teaching evolves aroundsustainable supply, energy efficiency in the supply chain, sustainable development

of logistics services, service management, and theorizing and methodology in thesefields

Sunderesh Heragu is Regents professor and head of the School of IndustrialEngineering and Management at Oklahoma State University where he holds theDonald and Cathey Humphreys Chair Previously, he was the Duthie Chair inEngineering Logistics and Director of the Logistics and Distribution Institute (LoDI)

at the University of Louisville He has also served as Professor at RensselaerPolytechnic Institute, Assistant Professor in State University of New York,Plattsburgh, and held visiting appointments at: State University of New York, Buffalo;Technical University of Eindhoven, the Netherlands; University of Twente, theNetherlands; and IBM’s Thomas J Watson Research Center in Yorktown Heights,

NY He is the author of Facilities Design (now in its 4th edition) and has authored orco-authored over two hundred andfifty articles He has served as Principal investigator

or co-investigator on research projects totaling over $20 million funded by federalagencies such as the Department of Homeland Security, National Science Foundation,Defense Logistics Agency and private companies such as General Electric Dr Heragu

is a Fellow of the Institute of Industrial and Systems Engineers (IISE) and has receivedIISE’s highest research award, the David F Baker Distinguished Research award, aswell as IISE’s Award for Technical Innovation in Industrial Engineering

Matthias Klumpp is a full professor in logistics at FOM University of AppliedSciences Essen and research group leader in production and logistics at theUniversity of Duisburg-Essen and the Fraunhofer Institute for Material Flow andLogistics in Dortmund (Germany) His research is addressing primarily topicsregarding artificial intelligence and digital business concepts, sustainability as well

as qualification and training in the supply chain and logistics field He has heldseveral visiting and policy positions e.g at the Dalle Molle Institute for ArtificialIntelligence (University of Lugano, Switzerland), University of Twente(Netherlands), European University Institute (Florence School of Regulation) andfor the ESCO Expert Group on Qualification in Logistics for the EuropeanCommission (Brussels, Belgium)

Nils Knofius is a doctoral student in the Department of Industrial Engineering andBusiness Information Systems at the University of Twente He also received hisMaster’s degree in industrial engineering and management from the University of

Twente, while holding a Bachelor’s degree from the Nordakademie His researchinterest lies in after-sales service supply chains and new technologies such asadditive manufacturing and artificial intelligence His PhD research focuses onadditive manufacturing (3D printing), in which he developed and evaluated variousbusiness concepts for its implementation in industry.

Kayse Lee Maass is an assistant professor in the Mechanical and IndustrialEngineering Department at Northeastern University She holds a PhD from theUniversity of Michigan, where she was a recipient of the NSF Graduate ResearchFellowship Program Award Her primary research interests lie in the application ofoperations research methods to location analysis, social justice, and healthcare.Leonardo Marrazzini graduated in 2016 in Mechanical Engineering at theUniversity of Pisa In the same year, he began his PhD studies in Industrial Plantswithin the same university His research activities mainly concern the adaptation ofLean Manufacturing principles to engineering-to-order (ETO) production envi-ronments His research focuses on models and techniques to support variouscompany operations

Mojtaba Masoudinejad received a BSc degree in control engineering from K.N.Toosi University of Technology, Tehran, Iran, in 2007 and an MSc degree inautomation and robotics from the TU Dortmund, Germany, in 2011, where he iscurrently working on a PhD study in the Chair of Materials Handling andWarehousing Since 2012, he has also been a Research Assistant with the TUDortmund His research mainly focuses on the development of sustainableembedded and Internet of Things (IoT) devices in thefield of materials handling incooperation with the Fraunhofer Institute for Material Flow and Logistics.Martijn Mes is Associate Professor within the department of IndustrialEngineering and Business Information Systems at the University of Twente, TheNetherlands He holds an MSc in Applied Mathematics (2002) and a PhD inIndustrial Engineering and Management at the University of Twente (2008) Hisresearch interests are transportation, multi-agent systems, stochastic optimization,discrete event simulation, and simulation optimization

Stefan Minner is a full professor in Logistics and Supply Chain Management atthe School of Management, Technische Universität München He is theEditor-in-Chief of the International Journal of Production Economics His researchwas published in many journals, including Manufacturing & Service OperationsManagement, Operations Research, Production and Operations Management, andthe European Journal of Operational Research He is a fellow of the InternationalSociety for Inventory Research (ISIR) and is currently vice-chairman of the sci-entific advisory board of the German Logistics Association (BVL), a member of theResearch Committee of the European Logistics Association (ELA), and the speaker

of the research training group Advanced Optimization in a Networked Economy(AdONE) at TUM

Thomas Neukirchen is a researcher in Logistics and Service Management atFOM University of Applied Sciences, currently associated with the projectMARTINA, which is aimed at research and software development for mobilelogistics education and training He studied Economics (University of Cologne,

WU Vienna) with a focus on quantitative analysis and game theory Professionalexperience includes event management for international conferences and qualitymanagement for an automotive supplier

Francesco Piana is an industrial engineer and PhD graduate at the Department ofIndustrial Engineering of Alma Mater Studiorum – University of Bologna Hisfavorite theme of research during the doctorate was humanitarian logistics; hestudied the introduction of innovative mechanical plants in developing regions and

in humanitarian camps, including waste management plants, water desalinationplants and renewable energy plants Since five years he is working at theDepartment of Industrial Engineering in both research and education, and isinvolved in European projects and collaboration with private companies In 2018 healso started a private company based consulting activity

Alberto Regattieri is a full professor in Logistics and Head of the ManagementEngineering Master Course at the University of Bologna (Italy) His currentresearch interests include the optimal design of manufacturing systems, innovativeapproaches to design and manage Supply Chains, Industrial Logistics, control andmaintenance of industrial plants He is/was responsible of several research projects

in co-operation with - and funded by - the European Commission, private andpublic companies, universities and international research centers regarding supplychain and logisticsfields He published more than 170 scientific papers

Moritz Roidl works as the Chief Engineer of the Chair of Materials Handling andWarehousing at the TU Dortmund He holds a degree in computer science (Dipl.-Inform.) from the same university His research topics include cyber-physical sys-tems in logistics, Industry 4.0, and decentralized control of materialflow systems.Gregor Sandhaus is a full professor for information systems at the FHDWUniversity of Applied Sciences in Mettmann, Germany His research areas inlogistics are information systems for SCM and data analytics with neural networks.Prior to his professorship Gregor Sandhaus has held different management posi-tions, e.g as global alliance manager at Sybase or as managing director at EntercomConsulting GmbH

Giulia Santarelli is a logistic manager in a multinational corporation She worked

in the Department of Industrial Engineering at the University of Padua for a fewyears, where she obtained her PhD in 2013, with a study on innovative solutions forpackaging At the University she became an expert in innovative packaging solu-tions for humanitarian organizations Her networks have enabled her to build up astrong partnership between the University of Bologna and the UNHRD-WFP, one

of the most important humanitarian agencies in the world

Holger Schiele is a full professor of Innovation of Purchasing, Production andLogistics at the University of Twente in Enschede (the Netherlands) He receivedboth his PhD and habilitation from the Leibniz University of Hanover (Germany).Previous to fully joining academia he has worked for ten years in industry and as aconsultant Twente is one of the few public universities in Europe to host a mastertrack in purchasing and supply management, which is co-ordinated by Holger Interms of research, Holger is one of the most prolific writers in his field His researchinterests focus on innovation from and with suppliers, supplier satisfaction, supplyrisk management and Industry 4.0 applications in purchasing.

Marco Schutten is an associate professor in the Department of IndustrialEngineering and Business Information Systems at the University of Twente, theNetherlands He holds an MSc in Applied Mathematics (1992) and a PhD inIndustrial Engineering from the University of Twente (1996) His research interestsinclude planning and scheduling in transportation, project, and productionenvironments

Zäzilia Seibold received a PhD in Mechanical engineering in 2016 from theKarlsruhe Institute of Technology (KIT) For her thesis, she was awarded the prizefor the best thesis in logistics by BVL, also in 2016 She now works at Bosch inLogistics Innovations

Michael ten Hompel is a full professor and holds the Chair of Materials Handlingand Warehousing at the TU Dortmund At the same time, he is Managing Director

of the Fraunhofer Institute for Material Flow and Logistics and Director of theFraunhofer Institute for Software and Systems Engineering, both in Dortmund He

is also board member of BITKOM, member of Acatech (National Academy ofScience and Engineering), BVL and the Logistics Hall of Fame, and foundingmember of WGTL (Scientific Association of Technical Logistics) He publishedmore than 400 papers and more than a dozen books

Andreas Trenkle is the head of the group Robotics and Interactive Systems inLogistics at the IFL of the Karlsruhe Institute of Technology (KIT) For his work inAGV-Systems and Interactive Systems he has won several awards

Matthieu van der Heijden is associate professor at the University of Twente,Enschede, the Netherlands His expertise is operations research models for decisionsupport in maintenance, inventories and transportation Especially he focuses onafter-sales service supply chains for advanced capital goods He participated in andmanaged 12 research projects in close collaboration with academic and industrialpartners in the area of transportation and after-sales service supply chains He haspublished over 50 papers in ISI journals

Erwin A van der Laan is an Associate Professor at RSM, Erasmus University,where he teaches operations management and logistics and heads the Center forClosed Loop Supply Chains His research interests include closed loop supply chainmanagement, operations of sustainable supply chains and humanitarian logistics.His work has been published in Management Science, Operations Research,

Production and Operations Management, and European Journal of OperationalResearch, among others.

Wouter van Heeswijk is a researcher at the Center for Mathematics and ComputerScience (CWI) in Amsterdam He obtained a master’s in Financial Engineering &Management and a PhD in Operations Research at the University of Twente Forhis PhD thesis, he studied both planning techniques and transportation management

in the context of urban freight logistics

Geert-Jan van Houtum is a professor of Maintenance and Reliability at theDepartment of Industrial Engineering & Innovation Sciences at the EindhovenUniversity of Technology He also serves as vice-dean in this department Hisresearch is focused on spare parts management, maintenance optimization,exploiting real-time degradation data for maintenance, and the effect of designdecisions on the total cost of ownership of capital goods Together with BramKranenburg, he wrote a book entitled Spare Parts Inventory Control under SystemAvailability Constraints

Albert W Veenstra is a full professor of International Trade Facilitation andLogistics at the Technical University Eindhoven He is also the scientific director ofTKI Dinalog Albert Veenstra is involved in the agenda setting for research andinnovation for the logistics industry in the Netherlands, as part of the Dutch gov-ernment initiative to promote the Topsector Logistics He has published on topics ininternational trade, global logistics, ocean shipping, and customs and supply chaincompliance

Henk Zijm is a full professor in Production and Supply Chain Management at theDepartment of Industrial Engineering and Business Information Systems at theUniversity of Twente since 1990 Previously, he has been project manager atPhilips Electronics in Eindhoven, and professor in Operations Management at theEindhoven University of Technology At the University of Twente, he servedamong others as Director of the Centre for Telematics and Information Technology,Dean of the Faculty of Electrical Engineering, Mathematics and Computer Science,and Rector Magnificus (Vice Chancellor) Professor Zijm is also a past president ofISIR (the International Society for Inventory Research, Budapest) In 2010, he wasappointed as scientific director of the Dutch Institute for Advanced Logistics(DINALOG), a national institute responsible for executing the Dutch governmentimposed innovation program on logistics and supply chain management Between

2014 and 2016 he also served as vice-chair of the European Technology Platformfor Logistics, which helps to design roadmaps that drive the Horizon 2020 researchand innovation program in Transport and Logistics Professor Zijm has publishedmore than 120 articles in international refereed scientific journals and is the (co-)author of three books He has been a consultant to a wide variety of industrialorganisations in the Netherlands and in Europe

Gerwin Zomer is a senior researcher in Logistics and Supply Chain Security atThe Dutch Institute for Applied Scientific Research (TNO) In TNO, he isresponsible for the portfolio of innovation projects in Data Driven Logistics Hecoordinated some international research projects in the field of supply chainsecurity, such as CASSANDRA and CORE Gerwin held several related auxiliarypositions, including Advisory Board member of the Dutch Trade ComplianceCommunity, Program Developer of the Dutch Institute for Advanced Logistics(DINALOG), and working group member of the European Technology Platformfor Logistics (Brussels) He published several papers and is a sought-after speaker

on supply chain innovation events and conferences

Part I Introductory Chapters

Objectives, Educational Developments

and Structure of the Book

Matthias Klumpp, Henk Zijm, Sunderesh Heragu and Alberto Regattieri

Abstract Operations, logistics, and supply chains are essential enablers in a

mod-ern economy At the same time, operational, logistics, and supply chain systemsare changing fundamentally as a result of technological and societal developments,requiring both researchers as well as skilled professionals to rethink them and toincorporate new functionalities This in turn poses new demands on the way voca-tional and academic learning, as well as on-the-job training programs for operations,logistics, and supply chain management are designed This book is an attempt toserve students, researchers, and business practitioners by providing information andbackground material at various levels In this introductory chapter, we discuss thescope and structure of the book Reading this chapter is recommended to determinehow to use the book in classroom lectures and seminars, gather background informa-tion or for studying specific topics In each chapter, suggestions for further readingand resources for the growth of lateral and critical thinking are provided in order tospread the learning curve—sometimes even slightly beyond the operations, logistics,and supply chain management domain Readers are encouraged to explore the addi-tional material for their own development and to build general learning and researchcapacities

Industrial Engineering and Management, Oklahoma State University,

Stillwater, OK, USA

e-mail: sunderesh.heragu@okstate.edu

A Regattieri

Department of Industrial Engineering, University of Bologna, Bologna, Italy

e-mail: alberto.regattieri@unibo.it

© Springer International Publishing AG, part of Springer Nature 2019

H Zijm et al (eds.), Operations, Logistics and Supply Chain Management,

Lecture Notes in Logistics, https://doi.org/10.1007/978-3-319-92447-2_1

3

1.1 Preliminaries

This is a comprehensive textbook on operations, logistics, and supply chain ment It reflects the many technological and societal advances that have shaped thefield, will shape future developments, and is based on the knowledge and experience

manage-of a carefully selected group manage-of experts It attempts to be complete in addressing a

broad range of topics Each chapter is discussed at a basic, advanced and stateof

-the-art level, to support the learning of topics and information about them.

The book is intended for a readership that on the one hand includes students within

the general study subject areas of economics and management, engineering as well

as geography and political studies with a focus on transportation and logistics Theaddressed subject fields are operations management, logistics management, supplychain management as well as subdomains such as transportation, warehousing, in-house logistics or the impact of new technologies, to name a few The study levelsencompass the full range of bachelor, master and Ph.D study programs; in particular,

we expect also researchers to find material that may serve as a starting point for furtherstudies

On the other hand, the book is also designed to provide a “look-up”

functional-ity for business professionals Operations, logistics, and supply chain management

concepts as well as state of the art information regarding the latest developments inresearch are included, especially in the last two sections of the book

Furthermore, many other potential readers including researchers in related neering or management domains and administration employees are encouraged touse this book as a first glance into the world of operations, logistics, and supply chainmanagement—a professional field that literally makes an interconnected world moveand function every hour of every day in our lives While logistics makes availableproducts and services in our economies, it faces a Herculean task which not only has

engi-to be performed cost-effectively but also within stringent environmental and socialconstraints

Therefore, an interested reader may find the concepts and discussions behind theprocesses, people, and businesses living up to this task fascinating—or even inspiring.For many, the comfort of being able to buy a product or service at a moment’s notice

is an astonishing feature of the modern world that cannot be sufficiently appreciated

In this, the authors also want to share and communicate the inspiration and motivation

of dealing with professional operations, logistics, and supply chain management withstudents, researchers, and practitioners around the world

1.2 Developments in Education and Teaching

The academic and education landscape has changed fundamentally in the last twodecades Today, universities compete in an international, global environment—notonly on the basis of research and reputation (global university rankings) but also

in terms of students, business cooperation, and knowledge transfer (including

spin-offs) Additionally, the traditional learning management via curriculum development

and definition of learning content has evolved to learning outcome orientation and

competence testing, as reflected by the PISA and AHELO test series from the OECD.1For Europe, the major development was the so-called “Bologna process” with thestandardization of three study cycles within all European countries—and in manynon-EU countries Following suit, the European Qualifications Framework (EQF) hasalso changed the way vocational, academic, and continuing/on-the-job education isshaped and evaluated, i.e., the transfer of qualifications and competences is easier

In this capacity, this development is seen as a blueprint for other countries andregions It also implies that many education and learning processes are targetedmore towards outcomes and personal competence acquisition, starting with school,vocational and academic education and reaching far through life-long-learning (LLL)into all continuing education aspects

Because of these trends in Europe, the so-called “Dublin descriptors” have beendeveloped to describe expected learning outcomes for different study levels—ab-stracted from the disciplinary context Figure1.1provides an overview of the variousdescriptors, which suggest a translation towards the operations, logistics, and supplychain management domain

Another learning taxonomy is provided by Bloom (Fig.1.2), outlining in quent levels the expected competences of graduates In this case it is expected thatbachelor students gain competences from the third (“apply”) towards the fourth (“an-alyze”) level during their studies; master students mature from the “analyze” towardsthe “evaluate” level during their studies, and PhD students arrive at the “create” level

subse-As with the Dublin descriptors, the overall objective of the taxonomy is to guide thedidactics and expectations of lecturers as well as the self-orientation and expectation

of students

1.3 Objectives of This Textbook

Operations and logistics are cornerstones of modern supply chains, which in turnare essential in global business and economics The composition, character, andimportance of supply chains and networks are rapidly changing, due to technologicalinnovations such as Information and Communication Technologies, Sensors andRobotics, Internet of Things, Additive Manufacturing, and Cyber Physical Systems(often referred to as Industry 4.0) Societal developments such as environmentalconsciousness, urbanization, and optimal use of scarce resources also affect the waysupply chain networks are configured and operated As a result, future supply chainswill not just be assessed in terms of cost-effectiveness and speed, but also the need

to satisfy agility, resilience, and sustainability requirements

To face these challenges, an understanding of the basic as well as more advanced

concepts and recent innovations are essential in building competitive and

sustain-1 Cp http://www.oecd.org/edu/skills-beyond-school/ahelo-main-study.htm

Cycle Knowledge and understanding:

1 (Bachelor) [is] supported by advanced text books [with] some aspects informed by

knowledge at the forefront of their field of study

2 (Master) provides a basis or opportunity for originality in developing or applying

ideas often in a research* context

3 (Doctorate) [includes] a systematic understanding of their field of study and mastery

of the methods of research* associated with that field

Applying knowledge and understanding:

1 (Bachelor) [through] devising and sustaining arguments

2 (Master) [through] problem solving abilities [applied] in new or unfamiliar

environments within broader (or multidisciplinary) contexts

3 (Doctorate) [is demonstrated by the] ability to conceive, design, implement and

adapt a substantial process of research* with scholarly integrity

Making judgements:

1 (Bachelor) [involves] gathering and interpreting relevant data

2 (Master) [demonstrates] the ability to integrate knowledge and handle complexity,

and formulate judgements with incomplete data

3 (Doctorate) [requires being] capable of critical analysis, evaluation and synthesis of

new and complex ideas

Communication:

1 (Bachelor) [of] information, ideas, problems and solutions

2 (Master) [of] their conclusions and the underpinning knowledge and rationale

(restricted scope) to specialist and non-specialist audiences (monologue)

3 (Doctorate) with their peers, the larger scholarly community and with society in

general (dialogue) about their areas of expertise (broad scope)

Learning skills:

1 (Bachelor) have developed those skills needed to study further with a high level of

autonomy

2 (Master) study in a manner that may be largely self-directed or autonomous

3 (Doctorate) expected to be able to promote, within academic and professional

contexts, technological, social or cultural advancement

Fig 1.1 Dublin descriptors

Fig 1.2 Bloom’s taxonomy

able supply chains and, as part of that, logistics and operations This book aims toprovide an overview of important trends and developments in logistics and supplychain research, to make them available to practitioners, while also serving as a point

of reference for academicians Operations, logistics, and supply chain managementspan multiple disciplines and geographies, making them interdisciplinary and inter-national Therefore, this book contains contributions and views from a variety ofexperts from multiple countries, and combines management, engineering as well asbasic information technology and social concepts In particular, it aims to:

• Provide a comprehensive guide for many relevant and major logistics, operations,and supply chain management topics in teaching and business practice

• Address three levels of expertise, i.e., concepts and principles at a basic graduate, B.Sc.) level, more advanced topics at a graduate level (M.Sc.), and finally recent (state-of -the-art) developments at a research level In particular the latter

(under-serve to present a window on current and future (potential) logistics innovations

in multiple thematic fields for both researchers and top business practitioners

• Integrate a textbook approach with matching case studies for effective teachingand learning

• Discuss multiple international perspectives in order to adequately represent thetrue global nature of logistics and supply chain management

1.4 Structure and “How to Use”

This textbook is divided into five sections for a total of 31 chapters All chapters are

further structured in three levels (basic, advanced, state-of-the-art) in order to allowfor an easy understanding and clear information structure for readers and learnersusing this book These levels are aligned with the bachelor, master, and Ph.D levels

in academic studies but are not limited to that

Professionals may also use this structure for guidance regarding their interest by

looking up basic information in the basic sections or—say—learning about the latest developments in state-of -the-art logistics research At the end of this chapter, there

is also a comprehensive “graphical structure” included to highlight and visualize thetopical structure and sequence of the book

Part I—Introductory Chapters

The first three chapters of this book serve to “set the stage” So far, we have lined the mission and output orientation of the book, as well as some insights in theway learning and teaching has changed under the influence of learning taxonomies

out-In the remainder of this chapter, we present a storyline that explains the structure

of the book in more detail From Chap.2onwards, we focus on the content First,

we briefly review major technological and societal developments that have mentally changed the way logistics and supply chains are designed and managed.Disrupting business models are discussed after which we focus on the effects of thedigital revolution and its impact on manufacturing and logistics To understand whythese changes are indeed revolutionary, we go back to the early roots of manufactur-ing, logistics, and trade (Chap.3), present an extensive case study on the logisticsoperation of the Dutch East Indies Company in the 17th century, and provide def-initions and concepts used throughout the book Relations with other managementdisciplines and scientific domains are also reviewed

funda-Part II—Key Domains of Supply Chains

Chapters4 7treat the basic elements of supply chains, i.e., sourcing, making andselling, followed by a study on the role of global supply chains in international trade,with a focus on compliance The importance of sourcing and purchasing is reflected

by the fact that many companies spend more than half of their turnover on supplies

In Chap.4, purchasing and supply management is therefore extensively discussed atmultiple levels, from strategic sourcing to operational procurement, with a focus thevarious contexts and roles that can be observed in practice Chapter5focuses on thedevelopment of manufacturing, beginning with some history that goes back more than2,000 years, but quickly moving to the first industrial revolution and the rise of mass

production Next, a process typology and a framework of the various manufacturingfunctions is discussed in detail, while providing a glimpse on future systems con-stantly being transformed by both technological (digitalization, robotics) and societaldevelopments (e.g., the circular economy) Marketing concepts and instruments arediscussed in detail in Chap.6 Although the close interaction between marketing andlogistics is obvious, there are not that many textbooks on logistics and supply chainthat include an in-depth treatment In this chapter, various methods to define anddistinguish markets, to set up distribution channels, to select partners and to monitorand manage the key concept of time-to-market are discussed Chapter7focuses oninternational trade and the conditions that determine to a large extent the operation

of global supply chains, emphasizing national and international regulations, and theneed for shippers, logistics service providers, and transport companies to complywith the rules imposed by customs and tax authorities Special attention is given totrusted trade lanes as a next step in international supply chain compliance

Part III—Overarching Topics

Chapters 8 10 discuss three topics that are fundamental for the management oflogistics and supply chain operations, although their impact goes far beyond thesedisciplines and in fact touch almost all aspects of society That certainly holds forinformation and communication technology, which is discussed in Chap.8in terms

of its impact on modern business development The recent emphasis on data ment and data analytics and the development of new technologies such as the Internet

manage-of Things only further underlines the key role manage-of digitization In Chap.9, we turn tothe concept of sustainability, defined in a broad sense, i.e., social, environmental andeconomic sustainability (people, planet, profit) In view of the constantly occurringdepletion of natural resources, but also the emission of hazardous materials, the movetowards more ecological friendly logistics and supply chains is now broadly recog-nized However, the key challenge will be to develop business models that reconcileeconomic, social, and environmental goals Chapter10focuses on another funda-mental condition: the need for skilled and knowledgeable workers at multiple levels.The rapid advance of new technologies, in the future more and more equipped withartificial intelligence applications, will definitely lead to an upward shift in terms

of required qualifications and competences How to prepare future workers for theworld in which they have to perform is a challenging task for educational institutesand Human Resource departments

Part IV—Functions in Production and Logistics

The next set of chapters discusses the sequence of steps encountered in a supplychain in more detail Chapter11is devoted to inbound logistics, i.e., all activities that

secure the supply of materials, components or products for manufacturing, assembly,and retail operations The associated information and materials flow involve differ-ent strategic and operational decisions that influence transportation, handling, andinventories In Chap.12, we turn to manufacturing planning and control systemsand discuss a number of production philosophies and associated control systems

in more detail Starting with the well-known Economic Production Quantity, wesketch the essentials of Manufacturing Resources Planning and Hierarchical Pro-duction Planning systems after which we turn to Just-in-Time and Lean Productionconcepts This chapter is concluded with a brief discussion of digital and cloud man-ufacturing A topic not often found in textbooks on supply chain management ispackaging logistics, although packaging may severely influence materials handlingand transport costs, as well as safety conditions Last but not least, smart packag-ing may substantially reduce the environmental footprint of supply chains Theseaspects are discussed in detail in Chap.13 Outbound logistics and distribution man-agement, the core subjects of Chap.14, again concerns a subject of high strategicimportance, especially in the trade and retail sector, and certainly in the light of e-commerce or multi-channel distribution Basic operational concepts are introduced,after which we describe differentiations in terms of multi-echelon inventory modelsand multi-objective concepts, e.g., service levels, cost optimization, batch and emer-gency deliveries, but also a more recent phenomenon involving customer integration

A key element in any distribution concept are the warehouse and the logistics ations in warehouses, which is the subject of Chap.15 The success of e-commerce,for example, and the ability to deliver many products within 24 hours, criticallydepends on, again, digital communication but above all on a superb logistics opera-tion, beginning in the warehouse Design concepts, as well as storage, order-pickingand routing policies are discussed in depth, followed by a vision on the impact ofnew technologies but also mass customization and environmental concerns The lat-ter also provide the driving force behind the emergence of closed loop supply chains(Chap 16) which are an operationalization of the idea of a circular economy, inwhich discarded products, parts or materials are reused instead of being sent to thelandfill A framework of various closed loop supply chain configurations is intro-duced and a number of business values are discussed More advanced topics includethe forecasting of the flow of reusable products and the integration of forward andreverse networks

oper-Part V—Models for Operations, Logistics and Supply Chain Management

Although some of the preceding chapters already include basic models to studythe trade-off between various alternatives, the six chapters in Part V are primarilymodel-oriented and discuss optimization aspects of various functions in logistics,manufacturing, and supply chain management in detail The sequence begins inChap.17, followed by a new set-covering formulation of a facility location problem

in the United States Multi-objective problems and models that integrate inventory

planning into facility location modeling are briefly outlined Chapter18, on processengineering and optimization, again discusses a subject not often found in opera-tional analysis textbooks on manufacturing and supply chains Process engineeringconcerns the selection of manufacturing processes and parameters and thereforelargely determines the input for the subsequent manufacturing scheduling problem

as encountered especially in job shops Production planning and scheduling is alsothe topic of Chap.20in which a number of advanced models are discussed In par-ticular, the relationship between capacity planning and lead-time management ispresented in detail, including the integration of workload control concepts Last butnot least, the shifting bottleneck heuristic for job shop scheduling is discussed.The various phases in the supply chain, but also within a manufacturing and assem-bly plant, are generally separated by inventory buffers Stochastic inventory models,discussed in Chap.20, are a rich topic in the Operations Management literature; theypertain to the analysis of anticipation stock in view of independent, and thereforeuncertain, demand Both single and multi-echelon models are discussed in a uniformanalytical framework Chapter21discusses transportation models in depth, with afocus on multi-modal transport and the need to coordinate and consolidate the var-ious flows, to reconcile economic and environmental goals This chapter includes

a discussion of urban freight transport in city distribution, and the ways in whichcity distribution centers may help to mitigate negative effects such as hazardous par-ticle emission and emission Chapter22is primarily devoted to after-sales servicelogistics, specifically the logistics of spare parts and other resources in view of themaintenance of capital assets The shift from corrective via preventive to predictivemaintenance (e.g., based on condition monitoring) has a large impact on the wayactivities are prepared logistically, and will lead to the development of new businessmodels, especially when responsibilities are transferred from the asset operator orowner to external service providers

Part VI—New Developments and Special Topics

The last set of chapters is devoted to new and recent developments and topics thatdeserve special attention Chapter23discusses the impact of additive manufactur-ing, also known as 3D-printing, on supply chain operations It is well known that thedesign freedom that comes with 3D-printing marks an important step towards masscustomization Special attention is given to additive manufacturing of spare parts, inview of its perceived potential to reduce the need for spare parts inventories substan-tially In Chap.24, we return to materials handling in warehousing and intralogistics

A fundamental categorization is presented, followed by an outline of recent and futurematerial handling concepts and functional challenges posed upon them The topic

of supply chain security, discussed in Chap.25, is linked to the discussion on pliance to regulations that is also addressed in Chap.7, but includes a discussion onsecurity aspects and a treatment of business perspectives Although already touched

com-in several precedcom-ing chapters, e-commerce has had such a far-reachcom-ing impact on the

consumer market that it deserves a separate treatment Hence, this is done in Chap.

26 Both the information flows associated with on-line shopping and electronic ment) and the interdependencies between e-commerce, logistics, and supply chainsare discussed, including an overview of advanced technologies

pay-Most supply chains are heterogeneous in the sense that different parts are trolled by independent entities while business contracts govern the overall supplychain Such agreements can be modeled by so-called multi-agent systems, which arethe topic of Chap.27 Often, such systems are also proposed for controlling manu-facturing and internal logistics operations, but in particular the negotiation processleading to contractual agreements between various supply chain stakeholders Thelatter is naturally modeled by multi-agent systems Artificial Intelligence applica-tions in logistics are the topic of Chap.28 Relatively well-known examples includesmart navigation systems and applications in autonomous vehicles but in particularthe use of more advanced topics such as machine learning, data analytics, and cogni-tive computing may severely impact future applications Special attention is given toman-machine interactions and the adoption rate of AI applications Chapter29dis-cusses the design of green logistics strategies and coordination in view of corporatesocial responsibility and the need to develop more sustainable supply chains

As mentioned previously the development of sustainable business models stitutes a major challenge to industries, governments as well as the consumer Atthe same time, we have witnessed the introduction of a number of new technologies

con-in manufacturcon-ing and logistics that help to make processes more efficient and lessenvironmentally damaging Chapter30focusses in particular on Remote FrequencyIdentification (RFID), which is ubiquitous in many logistics operations

Chapter31discusses a new paradigm in logistics and supply chain management,i.e., the Physical Internet The Physical Internet mimics the digital internet but isdevoted to the transport of physical products and materials It assumes a basic infras-tructure consisting of interconnected networks, and is based on building blocks such

as modular packages (small containers), information protocols, open hubs and ketplaces as well as myopic (multi-modal) routing strategies Ultimately, it aims atreplacing the current, highly fragmented, logistics infrastructure with a system that ismore efficient and at the same time more resilient However, it represents a long-termvision; more research and experimentation are required before being realized.Figure1.3provides an overview of the structure of the book

In the field of educational objectives and the Bloom taxonomy further details can

be found in Anderson et al (2001) as well as Bloom and Krathwohl (1956)

References

European Commission (2015) Explaining the European Qualifications Framework, European mission

Com-Anderson LW, Krathwohl DR, Bloom BS (2001) A taxonomy for learning, teaching, and assessing:

a revision of Bloom’s taxonomy of educational objectives Allyn & Bacon

Bloom BS, Krathwohl DR (1956) Taxonomy of educational objectives book 1: cognitive domain Longman

Perspectives on Operations Management

Developments and Research

Henk Zijm, Sunderesh Heragu, Matthias Klumpp and Alberto Regattieri

Abstract In this chapter, we discuss major technological and societal developments

that determine our lives to a large extent, not in the least the way we organizeour resource needs and hence logistics and supply chains After outlining thesedevelopments globally, we give some examples of truly disrupting business modelsthat are fundamentally changing our logistics and supply chain operations Next, welook in more depth at the manifestation of the digital revolution in manufacturingand supply chains, as well as the many opportunities that these technologies offer inaddressing a number of major societal challenges

2.1 Developments in Society and the Business World

In general, five main trends are driving our societies and the business world in the21st century:

• Technological developments are a major driving force as for example the

introduc-tion of the smartphone in 2007 has shown Within the industry, such trends

Industrial Engineering and Management, Oklahoma State University,

Stillwater, OK, USA

© Springer International Publishing AG, part of Springer Nature 2019

H Zijm et al (eds.), Operations, Logistics and Supply Chain Management,

Lecture Notes in Logistics, https://doi.org/10.1007/978-3-319-92447-2_2

15

pass additive manufacturing, RFID and Internet of Things based logistics, smartrobotics in warehousing and manufacturing/assembly, and cloud-based planningand control systems.

• Societal trends as for example the increasing individualization and

customiza-tion are a major force in market development, as customers increasingly demandtailored products and services Next to product price and quality, speed of deliv-ery is a major distinguishing business characteristic; indeed smart logistics is anindispensable competitive field of the rapidly growing e-commerce sector

• Globalization is continuing further, integrating an ever larger part of the world

into more complex relations (social, financial, political), including global supplychains This increases the task of operations, logistics and supply chain manage-ment in the design, control and resilience management of supply chains Further-more, claims of justice and environmental awareness (“one planet”) are voicedincreasingly in the wake of globalization; fascinatingly, this concern recentlyinduced steps towards a “local for local” economy again

• Volatility and fragility is increasing: as the global recession of 2008 has shown

and as is obvious from the different environmental and climate risks, humanityfaces increasing crisis and risk situations In terms of agility and robustness, alsobusiness models and supply chains have to live up to these challenges

• Sustainability is a pervasive concept that is introducing significant modifications

in products and industrial processes Modern supply chains must pay attention

to footprint and to the end or life of mass consumer products More and more,authorities are putting restrictions on the movement of goods due to environmentallimits

2.2 Disruptors and Their Impact on Supply Chains

Beginning with the proliferation of the internet, the economy as a whole and ations management in particular, have seen a variety of dramatic changes The rate

oper-of change as well its pace appears to be only be accelerating In his book titled

“The World is Flat: A Brief History of the Twenty-First Century”, Friedman (2005)discusses how ten flatteners have leveled the playing field from companies and com-petitors across the globe Services can be performed seamlessly at distant locations indifferent time zones in such a way that it can be rendered to a customer located thou-sands of miles without any delay Technology has revolutionized how retail giantssuch as WalMart streamline procurement, shipping, distribution, and sales It hasallowed companies to provide value-added services beyond their core competency.For example, in its Louisville facilities, UPS was able to perform repair of Toshibanotebooks in addition to shipping and distribution

In the past ten years, the pace of change has only accelerated Companies that arehousehold names and with market capitalization of a billion or more US dollars didnot exist until just a few years ago For example Facebook, with a market capital-ization of $523 billion, was founded only in 2004 Uber, valued at more than $65

billion was founded in 2009 Netflix, founded in 1997 as a DVD sales and rentalcompany, has now an entirely different business model It recently has transformedinto a different company that offers movies on-demand and is valued at $121 billion.Tesla, a $56 billion maker of electric vehicles was founded in 2003 Airbnb, valued

at $31 billion was founded in 2008 The list goes on and on What do the marketvaluations and company-founding dates tell us? With a new business model, compa-nies can become dominant players in their industry segments in no time Considerthe following:

• Uber is the world’s largest taxi company, but owns no cars

• Netflix is the world’s largest movie house, but owns no theaters

• Apple and Google are the largest software vendors, yet they do not develop theirown applications (apps)

• Alibaba is the world’s largest retailer, but carries no inventory

• Skype is one of the largest phone companies, but has no physical infrastructure

• Facebook is the world’s largest content provider, but develops no content on itsown

Yet, the impact of such companies on the economy, society (e.g., Arab Spring),and governments (role of Russian bots in the 2016 US elections), are of a scale andscope that it may take many years to understand their true effect

2.3 Digitization in Logistics and Supply Chain Operations

The digital transformation has revolutionized both businesses and personal life inrecent decades Along with that, we witness an unprecedented growth in the pro-duction and usage of data, largely generated automatically, through smart sensorand monitoring systems and less by human activities, although the underlying algo-rithms are still human designed The success of companies like Amazon, Google andAlibaba is in the first place due to their ability to process and analyze large amounts

of data and to use the results of such analyses for the development of personalizedservices But many, if not all, operational processes are heavily touched by digital-ization Below, we discuss a number of direct consequences of digitalization on theway we organize our logistics and supply chain processes

Increased data transparency may help to improve safety and security in supply chains,

particularly to diminish the risks of fraud Electronic document handling is alreadyfully engrained in commerce The goal for each stakeholder in a complex, heteroge-neous supply chain is to be able to verify all the required information, to access andmodify the data to the extent authorized, and to ensure a secure and uninterrupted

logistics process such that the goods are delivered from the producer to the receiverwithout any delay or loss in any link in a complex chain A promising development

may be the use of blockchain technology A blockchain basically is a growing list

of records (blocks) such that each block contains an encrypted hash of a previousblock which makes it inherently resistant against modification of data by design As

an open, distributed ledger it enables easy verification and possibly certification oftransactions by relevant partners and therefore offers prevention against any act oftheft or fraud The study of blockchains is still in its infancy (and is unfortunatelytoo much dominated by the bitcoin debate)

The growing interest in supply chain control towers is a direct consequence of the

enhanced transparency caused by increased data visibility However, the translation

of data into meaningful information is not self-evident Classical data analytics

techniques such as statistical analysis and pattern recognition are now enriched withtools arising in the field of artificial intelligence (see Sect 2.4.3) Control towersmay help individual companies to improve logistics and supply chain control atboth a tactical and an operational level, but also serve to synchronize operations

of various companies with the aim to both reduce costs and negative environmentaleffects, e.g., by pooling resources in freight logistics across supply chains (horizontalcollaboration) or by integrating sales, manufacturing and distribution schedules alongsupply chains (vertical collaboration)

The Physical Internet presents a vision of a common infrastructure used by

logis-tics service providers which entirely takes over responsibility from shippers andcustomers for a smooth and seamlessly integrated handling of transport orders It

is similar to the file-handling system of the digital internet, and is based on dardization of modular packets, electronic documents, routing protocols and pay-ment procedures The Physical Internet is an attempt to overcome the current highlyfragmented world of shippers, forwarders, logistics service providers, supply chainfinance agents and other stakeholders that lacks pooling and synchronization

The unprecedented growth and success of e-commerce transactions is largely due to a

superb information infrastructure and to excellent logistics networks in which everystep in the order and shipping workflow is recorded, allowing the customer to trace theorder at any time and if needed to influence the shipping schedule Next day or evensame day delivery is only possible with a highly advanced logistics order handlingsystem Yet, the challenge will be to keep the system sustainable, in particular due tothe return shipments that come along with the growth of e-commerce Urban and last-

mile transport are known to be the most expensive part of a logistic distribution chainwhich again requires well-thought control towers focusing on horizontal and verticalcollaboration Companies can efficiently transport products (large and small) acrossthousands of miles on container ships, trains, and trucks, but getting it to the endcustomer (last-mile delivery) is costly and time consuming There are several factorsthat affect the last-mile delivery, including traffic congestion, lack of infrastructure,and uncertainty in exact delivery time Amazon offers its Prime customers two-hourdelivery of groceries and many household items in thirty metropolitan cities in the

US With their recent acquisition of Whole Foods and vertical integration into thelogistics business, they are able to minimize the negative experiences relative to thelast-mile delivery for their customers by shipping goods to customers at a time andlocation specified by the customer Driverless vehicles also offers the potential toimpact the last-mile transportation Many customers in Europe who have access tocomfortable and relatively punctual high-speed train travel still prefer to use theirpersonal vehicles for travel, in part, because of the need to get their exact locations

at their destination from the train station Imagine a future state where there is asufficient number of driverless cars that can traverse all the areas within five miles

of a train station Drivers who today prefer to drive their own cars because of thedifficulty in reaching their final destination, may now be willing to utilize driverlessvehicles at the train station provided the wait times for these vehicles is minimal Infact, this is even more attractive than driving one’s own vehicle because the customerdoes not have to worry about parking anymore Today, this is already possible withUber pools

2.4 Industry 4.0/Smart Industry

The term Industry 4.0 or Smart Industry indicates the revolutionary change that italization and in particular the introduction of cyber-physical systems has broughtabout in almost all aspects of the industrial manufacturing and services industry.Without attempting to be complete, we discuss a few of the most prominent mani-festations of Industry 4.0

A promising new production technology is additive manufacturing, often referred

to as 3D printing Its name stems from the fact that it is based on adding material

in thin layers, one layer at a time, to build a product A variety of materials, ing composite materials that can be engineered to have the desired mechanical andstructural properties, can be used The product’s shapes and characteristics are com-pletely digitalized and stored in a CAD file which subsequently is translated into adigital process plan The advantages of 3D printing are twofold First, because the

includ-3D-printers are small enough to be put on a desk, individual customers can print(manufacture) small, spare parts to replace those that are damaged or dysfunctional.For example, a key component of an equipment on a navy ship that is currently

in the middle of the Pacific Ocean that has failed can be replaced quickly withoutthe need for the spare part to be shipped Second, 3D printing is based on the largedegree of freedom a designer has in developing new products, as opposed to classicalmachining operations based on the removal of materials As a result, 3D printing is

an important step in offering highly customized, if not unique, products to customers.However, through its integration of functions, 3D printing negates the advantages ofmodularization, which is why some scholars are skeptical on its use This is a topicfor further study

Sensor-technology has developed rapidly from classical condition monitoring niques (for instance used in maintenance and service operations, and quality assur-ance) to Remote Frequency Identification (RFID) that allows for the identification ofobjects without the need of visual access to the identifier The next step is to connect

tech-automatic signaling to subsequent actions The term Internet of Things is used to

denote devices that communicate with each other without necessary human ference and subsequently activate automatic devices to perform follow-up actions(e.g robots in a warehouse to pick replenishment items for transport to the desiredlocation Another interesting field is maintenance and service management where bymeans of remote monitoring the need for preventive maintenance actions is detectedand subsequently both logistics and repair actions are automatically planned

The use of Artificial Intelligence techniques is expected to play a dominant role

in many societal domains, including logistics and supply chains While cognitive

computing is often used for the processing of highly unstructured data sets (e.g., by

Natural Language Processing), machine learning is a promising technique to enhance

automatic decision making in more structured environments, without defining andcoding all applicable rules beforehand Machine learning may be based on a variety

of techniques (e.g., neural networks, logistic regression) and can play an importantrole in predictive analytics As an example, we mention the shift from preventive

to predictive maintenance, based on smart condition monitoring of assets and, ifneeded, the automatic determination of actions to restore a desired functionality.Both cognitive computing and machine learning techniques have proven their value

in the development of personalized marketing instruments but are also expected toplay a key role in future operations design

2.4.4 Robotics and Driverless Vehicles

Automation in manufacturing and logistics has already an impressive track record(computer integrated manufacturing, robotic assembly, automatic guided vehicles,automated storage and retrieval systems) but so far concerned primarily indoor oper-

ations The increased pace of the development of autonomous vehicles will not only

impact passenger but also freight transport, both in last-mile distribution and in haul transport, where we now see experiments with platooning of freight trucks

long-Similarly, unmanned cargo aircrafts (not to be mistaken with drones) are receiving

considerable attention, in particular for the transport of goods in less developed ordensely populated regions Clearly, such developments pose important new researchquestions in terms of the infrastructure needed to allow such autonomous devices tooperate, including the use of Internet of Things technology to move safely aroundobstacles and to prevent collisions Robotics, autonomous vehicles and unmannedaircraft (including drones) and ships are not just examples of high-level technicalautomation but in addition use artificial intelligence techniques to make short-termdecisions autonomously

Cloud Computing indicates the use of a common space and infrastructure to perform

a large variety of digital operations and thereby to diminish the need of local puting capacity and exploiting shared resources and communication infrastructures

com-It also offers the possibility to share work around the globe, as already happens in

product design for many years by means of Electronic Data Interchange (EDI) Cloud

Manufacturing is actually the manufacturing equivalent of cloud computing and is

a direct consequence of the possibility to define all aspects of a product or part tally, including the ways it should be processed The emergence of 3D-print servicecompanies is just one manifestation, but also the use of a common infrastructurefor manufacturing planning and control (cloud-based Enterprise Resource Planningsystems) is usually viewed as an example of cloud manufacturing

digi-Technologies such as 3D printing, possibly executed as a cloud manufacturingsolution, enhance our possibilities to present customized solutions to an increasinglydiverse client base In some fields, a further paradigm shift is observed in that cus-tomers are primarily interested in platform-based services (music streaming, cloudcomputing or manufacturing, car sharing), without necessarily owning the platformitself (shared economy)

2.4.6 Virtual Reality

As the virtual reality technology continues to improve, many services in business can

be severely impacted In systems design, virtual reality offers the option to explorealternative designs, e.g in future building constructions by enabling the potential user

to “walk through” a particular variant with the aim to provide useful feedback to thedesigner In manufacturing and transport, virtual reality enables engineers to becomefamiliar with new techniques or with the control of complex machinery without beingphysically confronted with it (as a flight simulator used for training car drivers oraircraft pilots) Serious games have proven to be an excellent tool in familiarizingmanagement with the effects of their decisions made in complex circumstances Inmaintenance we find applications in which an engineer on the spot receives instruc-tions from a digital device that contains and displays a full model of the object under

inspection This is a field in which also augmented reality has proven to be helpful.

As the term suggests, augmented reality adds computer-generated (often, graphical)information to elements observed in the real world The information may be based ondata from sensors that is not directly observable (a simple example is an electronicparking assistant in a car) but may also use background database information (aneye-glass that projects information on a person you observe in reality) Augmentedimages may also be entirely fictitious in which case they are often projected on realworld images and observed via special equipment such as a head-mounted display.Both virtual and augmented reality have raised high expectations in training peoplefor a variety of tasks in manufacturing and logistics, but also in helping to securesafety in logistics and supply chain operations

2.5 Societal Developments

The growing world population and the depletion of natural resources has an takable impact on our living circumstances, including the supply of products andservices Urbanization is placing a heavy burden on our economic, ecological andsocial environment Many people recognize the need to become more efficient in theuse of resources and to diminish their ecological footprint There are basically twoways of answering the challenge: do more with less (shared economy) and avoid anyunnecessary waste Below, we elaborate on both ways

We briefly touched upon the need for a shared economy Many resources today

are underutilized Consider the cars parked by customers who are taking a shorttrip from their local or regional airport Until the customer returns, the vehicle is

not used In addition, valuable space is occupied Of course, the parking companyreceives revenue for parking and the customer is willing to pay for the convenience

of parking and having access to their car immediately upon their return However,when looking at this situation from a shared economy perspective, one might think

of a business model in which the parking lot owner does not charge the car owner forparking In return, the parking lot owner rents this car to other customers who need

a vehicle during the time period that the car owner is away This generates revenuesfor the parking company and some customers may be motivated to rent their car ifoffered free parking and potentially additional financial incentives Another well-known example of shared economy is how companies utilize truck capacities sothat a trailer is completely filled with goods (coming from multiple customers) in theoutbound and inbound trips There are some industries where the return trip is almostempty For example, the Scania truck plant in the Netherlands receives pallet loads ofsubassemblies via trucks each morning from Sweden, but these trucks take back onlythe empty pallets on their return trip Warehouses can be filled to capacity if goodsfrom multiple customers are pooled Of course, there are some drawbacks in doing

so because if a primary customer’s storage space is allocated to another customerand there is a sudden change in demand for the primary customer’s goods, theremay not be sufficient space to accommodate the inventory of all the customers andthe warehouse manager will have to secure additional space at a much higher cost.Third-party logistics providers use sophisticated mathematical models to managetheir resources effectively With the growth of the shared economy, there will becontinued interest in this area

Economy

Sustainable and resilient/robust global supply chains are a key condition to maintainand distribute welfare and prosperity to both developed and developing countries andhence we have to find ways to cope with these challenges Some key figures mayserve to illustrate the need to find solutions to these challenges While the EuropeanCommittee has set clear targets to reduce Greenhouse Gas Emissions (GGE) in 2015

to 60% as compared to 1990, we observe that the percentage of transport relatedGGE has increased from 25% in 1990 to 36% currently Intensified global logisticshas also increased security vulnerability, while both volume and speed increase haveintroduced additional safety risks

There are both technological and organizational ways to turn the tide The opment of cleaner and more efficient engines, the electrification of transport and theuse of hydrogen power instead of fossil fuels are just one way, but the efficient use

devel-of resource capacity by pooling resources is an important additional step Sharing

of resources however often requires the collaboration of competitors who thereforehave to share information The hesitation to share competition-sensitive and hence