Enterprise Networks and Logistics for Agile Manufacturing (eBook)

Lihui Wang is a professor of virtual manufacturing at the University of Skövde’s Virtual Systems Research Centre in Sweden. He was previously a senior research scientist at the Integrated Manufacturing Technologies Institute, National Research Council of Canada. He is also an adjunct professor in the Department of Mechanical and Materials Engineering at the University of Western Ontario, and a registered professional engineer in Canada. His research interests and responsibilities are in web-based and sensor-driven real-time monitoring and control, distributed machining process planning, adaptive assembly planning, collaborative design, supply chain management, as well as intelligent and adaptive manufacturing systems. S.C. Lenny Koh is Chair in Operations Management, Director of the Logistics and Supply Chain Management (LSCM) Research Centre, Associate Dean of Alumni Relations, and Head of the Operations Management Group at the University of Sheffield’s Management School, UK. She is also a co-founder of the Supply Chain Management and Information Systems (SCMIS) Consortium. Her industrial and research experiences include implementation and operations of MRP/MRPII/ERP systems, batch-manufacturing and high-tech environments, directorships/leaderships in the agricultural sector, directorships and management in the business-to-business and business-to-consumer food supply chains, business ventures and investment, uncertainty management, and low carbon and green supply chain.

Preface 5
Contents 8
List of Contributors 16
1 Overview of Enterprise Networks and Logistics for Agile Manufacturing 19
1.1 Introduction 19
1.2 Logistics 20
1.3 Supply Chain Management 20
1.4 Agile Manufacturing – Towards Leagile Manufacturing and Supply Chain? 21
1.4.1 Lean Strategy 23
1.4.2 Agile Strategy 23
1.4.3 Leagile Strategy 23
1.5 Cases from Logistics Sectors 24
1.5.1 Foreign 3PL: Company A Logistics and Maersk Logistics 24
1.5.2 Domestic 3PL: Longfei Logistics and Company B Logistics 25
1.6 Supply Chain Transformation 26
1.7 Conclusions 27
References 27
2 A Review of Research and Practice for the Industrial Networks of the Future 29
2.1 Introduction 29
2.1.1 Brief History of Industrial Networks 30
2.1.2 The Impact of Globalisation 32
2.1.3 Scope of Chapter 33
2.2 Traditional Views about Networks 34
2.2.1 Core Competencies and Outsourcing 35
2.2.2 Keiretsu and Chaibol Networks 36
2.2.3 Agile Manufacturing Networks 37
2.2.4 Supply Chain Management 38
2.2.5 Traditional Views on the Wane 39
2.3 Future Networks 40
2.3.1 Network Configuration 41
2.3.2 Manufacturing as a Commodity 43
2.3.3 Added Value of Industrial Networks 44
2.3.4 Sustainability of Supply Chains 45
2.4 Research Agenda for Industrial Networks 46
2.5 Implications for Practice 48
2.6 Conclusions 49
References 49
3 Agile Manufacturing in Complex Supply Networks 57
3.1 Introduction 57
3.2 An Overview of Commercial Solutions for SNC 58
3.3 Challenges and Requirements of SNC 59
3.4 A Research Framework for SNC 60
3.4.1 Seven Coordination Processes 60
3.4.2 Functional Relationship Between the Focused Processes 62
3.5 The Overall Co-OPERATE System 63
3.5.1 System Design Approach 63
3.5.2 Network Coordination Architecture 64
3.5.3 Operational Ordering and Planning 69
3.5.4 Visibility of Order Progress 71
3.5.5 Exception Handling 74
3.5.6 Request and Feasibility Studies 76
3.5.7 Comparison of Co-OPERATE with Other Solutions 78
3.6 Implementation and Evaluation 78
3.6.1 Process Design and Implementation 78
3.6.2 Pilot System Evaluation 79
3.7 Conclusions and Future Work 80
Acknowledgement 81
References 81
4 Enterprise Network and Supply Chain Structure: the Role of Fit 84
4.1 Introduction 84
4.2 Relevance of Enterprise Architecture 86
4.3 The IFIP IFAC Task Force 87
4.4 The First IFIP IFAC Mandate 88
4.4.1 The Historical ‘Type 2’ Architecture 89
4.5 The Second IFIP IFAC Mandate 93
4.6 The GERAM Model 95
4.6.1 Life-cycle Concept 95
4.6.2 Enterprise Entity Types Concept 97
4.6.3 Enterprise Modelling Concept 99
4.6.4 Modelling Language Concept 100
4.6.5 Generic Enterprise Engineering Methodologies 100
4.6.6 Generic Enterprises Modelling Languages 100
4.6.7 Generic Enterprise Modelling Tools 101
4.6.8 Enterprise Models 101
4.7 Architectural Structure and Life Cycle 102
4.8 Real Option and Enterprise Architecture 104
4.8.1 High-tech Manufacturing – Optimising Enterprise Network Architecture with Real Options 104
4.8.2 The Real Option Results for the Firm Project 107
4.9 Conclusions 114
References 114
5 Enterprise Networks and Information and Communications Technology Standardisation 116
5.1 Introduction 116
5.2 ICT Standards Setting 119
5.3 Significant References to ICT Standardisation 121
5.4 ICT Standardisation – Why the Best Does Not Always Win 123
5.5 Automotive Network Exchange: an Excellent Example of an Enterprise Network 126
5.5.1 The US ANX 127
5.5.2 The Australian ANX 129
5.5.3 The Japanese ANX 131
5.5.4 The European ANX 132
5.5.5 The Korean ANX 132
5.6 Conclusions 132
References 133
6 Collaborative Demand Planning: Creating Value Through Demand Signals 135
6.1 Introduction 135
6.2 Creating Value by Implementing Demand-driven Supply Chains (DDSC) 137
6.3 Using Demand Signals to Develop Collaborative Demand Planning Practices 141
6.3.1 Case 1: Délifruit/Casino 141
6.3.2 Case 2: La Normandise/Casino 142
6.3.3 Case 3: Tefal/Carrefour 144
6.4 Cross-case Analysis and Discussion 145
6.5 Conclusions 148
References 150
7 Value Creation and Supplier Selection: an Empirical Analysis 153
7.1 Introduction 153
7.2 Supplier Selection 155
7.3 Methods and Materials 156
7.3.1 Questionnaire 156
7.3.2 Data Collection 156
7.3.3 Companies Sampled 156
7.4 Results 156
7.4.1 Typology of Companies 156
7.4.2 Characteristics of Supplier Selection 157
7.4.3 Selection Criteria 159
7.4.3.1 Classical Criteria 159
7.4.3.2 IT Criterion 160
7.4.4 Supplier Selection and Value Creation 162
7.4.4.1 Competencies Acquisition and Development 162
7.4.4.2 Performance 163
7.4.4.3 Difficulties 165
7.5 Conclusions 166
References 167
8 Supplier Selection in Agile Manufacturing Using Fuzzy Analytic Hierarchy Process 170
8.1 Introduction 170
8.1.1 Agile Manufacturing Criteria 173
8.2 Literature Review 176
8.3 Supplier Selection Criteria for Agile Manufacturing 182
8.3.1 Supplier Criteria 182
8.3.2 Product Performance Criteria 183
8.3.3 Service Performance Criteria 183
8.4 A Fuzzy Multi-criteria Supplier Selection Model for Agile Manufacturing 187
8.5 An Application 195
8.6 Conclusions 200
References 201
9 A Sustainable Green Supply Chain for Globally Integrated Networks 206
9.1 Introduction 206
9.2 The Importance of Going Green 208
9.2.1 Political Concern 209
9.2.2 Economic Considerations 209
9.2.3 Changing Business Model 210
9.2.4 Public Image 210
9.2.5 Innovation and Technology Adaption 210
9.3 Examining the Sustainable Green Supply Chain 210
9.4 Critical Drivers that Stimulate Companies to Adopt a Green Supply Chain 211
9.4.1 Regulatory Issues, Mandates and Standards 212
9.4.2 Market Competitiveness 213
9.4.3 Differentiation by Innovative Strategies 213
9.4.4 Supplier Consolidation and Economic Gain 213
9.5 Important Things to Consider while Designing a Network 214
9.5.1 Controlling Emissions Across the Supply Chain 214
9.5.2 Restructuring the Network 214
9.5.3 Performing Life-cycle Assessments 216
9.6 Implementation Challenges of a Sustainable Supply Chain 217
9.6.1 Green Logistics Initiatives in the UAE 218
9.6.1.1 Green Buildings for Maxx 3PL Logistics in Dubai 218
9.6.1.2 Masdar City in Abu Dhabi 218
9.6.1.3 Emission Reduction Emissions by UPS/DHL/FedEx 218
9.6.2 Implementation Challenges Perceived in UAE 218
9.7 Managerial Implications and Concluding Remarks 219
References 220
10 A Multi-agent Framework for Agile Outsourced Supply Chains 222
10.1 Introduction 222
10.2 Agile Manufacturing 224
10.3 Problem Scenario 225
10.4 Agent Framework 226
10.4.1 Agent Architecture 226
10.4.1.1 Ordering Agent 227
10.4.1.2 Inventory Agent 228
10.4.1.3 Planning Agent 228
10.4.1.4 Corporate Memory Agent 233
10.4.1.5 Data-mining Agent 233
10.4.1.6 Distribution Agent 234
10.4.1.7 Learning Agent 234
10.4.2 Communication Channel 236
10.4.2.1 Attributes of Communication Module 236
10.4.2.2 Encoding Format 237
10.5 Conclusions 237
References 238
11 Agent-based Simulation and Simulation-based Optimisation for Supply Chain Management 242
11.1 Introduction 242
11.2 Literature Review: Agent-based Simulation 244
11.3 An ABS Framework for Multi-objective and Multi-level Optimisation 248
11.4 A Simple Case Study 253
11.5 Conclusions 257
References 258
12 Analysing Interactions among Battery Recycling Barriers in the Reverse Supply Chain 263
12.1 Introduction 263
12.2 Survey of Previous Work 266
12.3 Description of Recycling Barriers 268
12.4 Interpretive Structural Modelling 269
12.5 Case Study 271
12.5.1 Structural Self-interaction Matrix 271
12.5.2 Reachability Matrix 273
12.5.3 Level Partitions 274
12.6 Formation of the ISM-based Model 276
12.7 MICMAC Analysis 276
12.8 Conclusions 278
References 279
13 Design of Reverse Supply Chains in Support of Agile Closed-loop Logistics Networks 284
13.1 Introduction: Motivation and Concepts 284
13.2 Design of Reverse Logistics Networks: a Literature Review 286
13.2.1 Independent Reverse Logistics Networks 286
13.2.2 Configuration of Reverse Logistics Networks by Considering the Synergies with the Forward Channel 287
13.2.3 CLSC Networks 287
13.2.4 Literature Review Insights 288
13.3 System Description 288
13.3.1 Problem Definition 288
13.3.2 Major Modelling Assumptions 293
13.4 Model Formulation 293
13.4.1 Nomenclature 293
13.4.2 Optimisation Model 297
13.4.3 Solution Performance 302
13.4.4 Sensitivity Analysis and Managerial Insights 303
13.5 Extensions and Future Research Directions 304
13.5.1 Model Extensions 304
13.5.2 Future Research 306
13.6 Conclusions 307
References 307
14 The Evolution of Logistics Service Providers and the Role of Internet-based Applications in Facilitating Global Operations 310
14.1 Introduction 310
14.2 Logistics Service Providers: Evolution and Major Trends 311
14.2.1 LSPs: Context and Types 311
14.2.2 Evolution and Characteristics of the LSP Market 312
14.2.3 Major Trends 313
14.3 Evolution and Current State of Electronic Marketplaces in Logistics 315
14.3.1 Electronic Marketplaces and Logistics: Concept, Context and Evolution 315
14.3.2 Electronic Logistics Marketplaces: an Overview 316
14.4 Conclusions and Future Trends 319
References 320
15 A Heuristic for Heterogeneous Capacitated Pick-up and Delivery Logistics Problems with Time Windows in Agile Manufacturing and the Distribution Supply Chain 324
15.1 Introduction 324
15.2 Research Problem 326
15.3 Literature Review 328
15.4 Problem Description 329
15.4.1 Notations 329
15.4.2 Problem Representation 330
15.4.3 Problem Constraints 332
15.4.4 Problem Objective 332
15.4.4.1 Lexicographic Method 333
15.5 Proposed Simulated Annealing for Solving m-PDPTWH 334
15.5.1 Neighbourhood Structure 335
15.5.2 Evaluation Function, Ranking and Temperature Assignment 336
15.5.2.1 2-opt* Exchange Modification 338
15.5.2.2 Parameter Settings for ESA 340
15.6 Computational Study 340
15.7 Conclusions 340
References 342
16 Visualisation and Verification of Communication Protocols for Networked Distributed Systems 345
16.1 Introduction 345
16.1.1 Basic Strategy to Deal with System Complexity 346
16.1.2 Development of a Decentralised System 346
16.1.3 Development of Decentralised Control Systems 347
16.1.4 Life Cycle of Control Systems Development 348
16.1.5 Overview of the Presented Work 349
16.2 Distributed Sensor-based Information System 350
16.2.1 Application Scenarios 350
16.2.2 Classes of Components in a DSBIS 352
16.2.3 An Example of the Algorithms – Ring Extrema Determination 354
16.2.3.1 Outbound Message Initiated Operations 355
16.2.3.2 Inbound Message Initiated Operations 356
16.2.3.3 Halt Message Operations 356
16.2.3.4 Algorithm 356
16.3 Modelling Methodologies 359
16.4 DSBIS Modelling in QUEST 360
16.5 Case Study 361
16.5.1 Basic Components and Communications 362
16.5.1.1 Modelling of MessageProcessor 362
16.5.1.2 Modelling of Wireless Communication 362
16.5.1.3 Modelling of Connection 363
16.5.1.4 Modelling of Message 363
16.5.1.5 Coordinating Algorithms Modelling 364
16.5.2 Coordinating Algorithm 364
16.6 Conclusions 366
References 366
17 Robustness and Capability Indices in the Optimisation of an Airline’s Fleet – Bridging Contradicting Outcomes 370
17.1 Introduction 370
17.2 Literature Review 371
17.3 Contribution of Quality Standards in the Airline Industry 375
17.3.1 Design of Experiments: Industrial Application of SNRs 376
17.3.2 Implications of Capability Indices 380
17.4 Research Methodology 383
17.4.1 Areas of Further Improvement between Cpk and SNRs 385
17.4.2 Summary of Most Commonly Used Approaches 389
17.5 Analysis of Noteworthy Approaches 391
17.6 Discussions on Current Techniques 394
17.6.1 Development of New Hubs: Strategic Uses and Applied Policies 395
17.6.2 Proposed Model by Martin and Roman 396
17.6.3 Proposed Model by Rietveld and Brons 397
17.6.4 Evaluation of Hub-influential Parameters 397
17.7 Preliminary Model 398
17.7.1 Input Parameters for Development of a Factorial Experiment 399
17.7.2 Factorial Experiment for Smaller-the-Better 402
17.8 Conclusions and Future Work 404
References 405
Index 409