Introduction to Logistics Systems Management

Gianpaolo Ghiani, Università del Salento, Italy

Gilbert Laporte, Canada Research Chair in Distribution Management, Canada

Roberto Musmanno, Università della Calabria, Italy

Foreword

Preface

About the Authors

Exercises and Website

Acknowledgments

1 Introducing Logistics

1.1 Definition of Logistics

1.2 Logistics Systems

1.2.1 Logistics activities

1.2.2 Information flows and logistics network

1.2.3 Case of more products

1.3 Reverse Logistics

1.4 Integrated Logistics

1.5 Objectives of Logistics

1.5.1 Measures of the service level

1.6 Management of the Logistics System

1.6.1 Planning phase

1.6.2 Organisational phase

1.6.3 Control phase

1.7 Case Study: the Pfizer Logistics System

1.8 Questions and Problems

2 Forecasting Logistics Requirements

2.1 Introduction

2.2 Qualitative Methods

2.3 Quantitative Methods

2.3.1 Graphical representation of time series

2.3.2 Classification of time series

2.4 Data Preprocessing

2.4.1 Insertion of missing data

2.4.2 Detection of outliers

2.4.3 Data aggregation

2.4.4 Removing the calendar variations

2.4.5 Deflating monetary time series

2.4.6 Adjusting for population variations

2.4.7 Normalising the data

2.5 Choice of the Forecasting Method

2.5.1 Notation

2.5.2 Casual versus extrapolation methods

2.5.3 Decomposition method

2.5.4 Further time series extrapolation methods: the constant trend case

2.5.5 Further time series extrapolation methods: the linear trend case

2.5.6 Further time series extrapolation methods: the seasonal effect case

2.5.7 Further time series extrapolation methods: the irregular series case

2.5.8 Sporadic time series

2.6 Advanced Forecasting Method

2.7 Accuracy Measure and Forecasting Monitoring

2.7.1 Accuracy measures

2.7.2 Tuning of the forecasting methods

2.7.3 Forecast control

2.8 Interval Forecasts

2.9 Case Study: Forecasting Methods at Adriatica Accumulatori

2.10 Case Study: Sales Forecasting at Orlea

2.11 Questions and Problems

3 Designing the Logistics Network

3.1 Introduction

3.2 Qualitative Methods

3.3 Quantitative Methods

3.3.1 Single-commodity single-echelon continuous location problems

3.3.2 Single-commodity single-echelon discrete location problems

3.3.3 Single-commodity two-echelon discrete location problems

3.3.4 The multi-commodity case

3.3.5 Location-covering problems

3.3.6 p-centre problems

3.4 Hybrid Methods

3.5 Stochastic Location Models

3.6 Case Study: Container Warehouse Location at Hardcastle

3.7 Case Study: the Organ Transplantation Location-Allocation Policy of the Italian National Transplant Centre

3.8 Questions and Problems

4 Selecting the Suppliers

4.1 Introduction

4.2 Definition of the Set of Potential Suppliers

4.3 Definition of the Selection Criteria

4.4 Supplier Selection

4.5 Case Study: the System for the Selection of Suppliers at Baxter

4.6 Questions and Problems

5 Managing a Warehouse

5.1 Introduction

5.1.1 Performance parameters

5.1.2 Decision-making problems

5.2 Warehouse Design

5.2.1 Choice of warehouse systems

5.2.2 Choice of warehouse layout

5.2.3 Sizing of the storage zone

5.2.4 Sizing of the receiving zone

5.2.5 Sizing of the shipping zone

5.3 Tactical Decisions for Warehouse Logistics Planning

5.3.1 Product allocation to the storage points

5.3.2 Inventory management

5.4 Operational Decisions for Warehouse Logistics Management

5.4.1 Package picking from the storage zone

5.4.2 Package consolidation in load units

5.5 Case Study: Performance Evaluation of an AS/RS System conducted by Wert Consulting

5.6 Case Study: Inventory Management at Wolferine

5.7 Case Study: Airplane Loading at FedEx

5.8 Questions and Problems

6 Managing Freight Transport

6.1 Introduction

6.1.1 Modes of transport

6.1.2 Classification of transport problems

6.2 Freight Traffic Assignment Problems

6.2.1 Minimum cost flow formulation

6.2.2 Linear single commodity minimum cost flow problems

6.2.3 Linear multicommodity minimum cost flow problems

6.3 Service Network Design Problems

6.3.1 The linear fixed charge network design model

6.4 Vehicle Allocation Problems

6.5 A Dynamic Driver Assignment Problem

6.6 Fleet Composition

6.7 Shipment Consolidation

6.8 Vehicle Routing Problems

6.8.1 The travelling salesman problem

6.8.2 The node routing problem with capacity and length constraints

6.8.3 The node routing and scheduling problem with time windows

6.8.4 Arc routing problems

6.8.5 Route sequencing

6.9 Real-Time Vehicle Routing Problems

6.10 Integrated Location and Routing Problems

6.11 Vendor Managed Inventory-Routing

6.12 Case Study: Air Network Design at Intexpress

6.13 Case Study: Meter Reader Routing and Scheduling at Socal

6.14 Case Study: Dynamic Vehicle Dispatching Problem with pickups and Deliveries at eCourier

6.15 Questions and Problems

Index

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