TNK124
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| 🇬🇧 | 🇬🇧 |
| What activities are in distribution | Transportation, warehousing, inventory control, order administration, packaging, data processing, and communication networks |
| Distribution planning decisions | Distribution planning involves making decisions related to transportation, warehousing, inventory levels, materials handling, site planning, and packaging to support distribution |
| Examples of distribution channels | 1. delivery from the manufacturer to the retailer's store, 2. delivery via the manufacturer's own distribution center (DC) 3. delivery via the retailer's DC 4. delivery via wholesalers or cash-and-carry wholesalers, delivery through third-party logistics (3PL) partners or package distributors, and transactional channels involving brokers. |
| Purposes of distribution channels | Making products available in the right market triving (sträva) for rewarding collaborations Expanding sales prospects (Framtids prognos) Reaching determined (bestämda) service levels Minimizing logistics cost Facilitating fast and accurate information exchange |
| Sustainablity (Hållbarhet) - there are three dimensions: | Environment – Pollution (Förorening), climate change, depletion of natural resources Economic – Employment, financial strength, corporate profitability Social – Reduced poverty (Fattigdom), increased living and work standard |
| Logistics and sustainable supply chain can be divided into 5 parts | Design Procurement (Process of getting supplies) Production Distribution Return logistics |
| Describe the design part in Logistics and sustainable supply chain | 1. Material choice in product and packaging 2. The products physical characteristics 3. Focus on recycling and reuse possibilities |
| Describe the procurement part in Logistics and sustainable supply chain | 1. Supplier localization can affect resource footprint 2. Environmental impact of the supply chain 3. Ethical conundrums |
| Describe the production part in Logistics and sustainable supply chain | 1. Increased energy efficiency 2. Reduce waste, re-work and discarding 3. Reduce/eliminate air, ground and water emissions |
| Describe the distribution part in Logistics and sustainable supply chain | 1. Optimize distribution networks 2. Minimize transport intensity in the network 3. Evaluate different transport modes |
| Describe the return logistics part in Logistics and sustainable supply chain | 1. Develop options for ”Reverse logistics” concepts 2. Manage products’ ”end-of-life” 3. Create ”closed loop” supply chains |
| Describe problems with City logistics | – Limited space and accessibility – Conflict situation between people and goods transport planning – Authorities v.s. businesses – Conflict situation between residents, workplaces, production, distribution, shopping, and tourism |
| Describe Definition of city logistics | The process for totally optimizing the logistics and transport activities by private companies in urban areas while considering the traffic environment, its congestion, safety and energy savings within the framework of a market economy |
| So, what can be done to have an attractive city? | Time windows, Economic growth, business establishments, Infrastructure |
| What types of transportation modes do we have? | Road, Air, Sea & Rail |
| Describe sea transport | Delivery time – Slowest Size of shipment – Largest Transport cost – Lowest cost per ton-kilometer Capital tied up – Highest Delivery accuracy – Lowest Flexibility in routing and time – High, but only between harbors (Hamnar) |
| Describe Railway transport | Delivery time – Fast Size of shipment – Large Transport cost – Low variable costs and high fixed costs Variable costs: Loading, unloading and switching of trains and wagons Fixed costs: Maintenance (Underhåll) and depreciation (värdeminsking) of railway, terminals, and administrative costs Capital tied up – High (esp. if goods are highly valued) Delivery accuracy – Low Flexibility in routing and time – Low, terminals and railways sets the boundaries |
| Describe Road transport | Delivery time – Fast, especially ”from A to B” Size of shipment – Small Transport cost – Low fixed costs and high variable costs (Rörliga kostander) Variable costs: Fuel Fixed costs: Terminal costs Capital tied up – Low Delivery accuracy – High Flexibility in routing and time – High, only roads and driver regulations sets the boundaries |
| Describe Air transport | Delivery time – Fast, fastest Size of shipment – Small Transport cost – Highest Capital tied up – Low Delivery accuracy – High Flexibility in routing and time– Low and limited to airports and routes |
| What is Multimodal transport | • Transportation that combines several types of transports • Uses the type of transport most efficient for each part of the total transported distance • Efficient transitions between types of transports = efficient work at terminal • Unit carriers (pallets or container) • In a distribution center, goods can be unloaded and then loaded, with or without registration in inventory • Usually made in three steps: 1. Unload inbound goods 2. Inspect goods and sort 3. Reload goods and send off • Potential benefits of time saving, money saving, and customer satisfaction • Can be useful for perishable products but can demand investment in terminal |
| What is Cross-docking? | Cross-docking is a logistics process that involves the efficient transfer of goods from an inbound shipment to an outbound shipment without the need for long-term storage. There are three main types of cross-docking: |
| Describe the main types of cross-docking | • Trans-shipment: In this type, the received order is already packaged and ready for delivery to the customer. It is simply transferred from the inbound shipment to the outbound shipment without any additional processing or sorting. • Flow-through: With flow-through cross-docking, some level of sorting or break bulk is required when the order is received. The goods are quickly sorted and reorganized before being loaded onto the outbound shipment. • Merge-in-transit: In this case, the existing inventory stored at the distribution center (DC) is combined with the incoming order. This allows for customization or modification of the order before it is shipped to the customer. |
| What is Postponement, or delayed differentiation | Is a supply chain strategy where a product is maintained in a generic (Allmän) state for as long as possible. The process of transforming the generic product into a specific end-product is delayed until closer to the consumer. This approach enables the storage of safety stock for a single generic product instead of multiple particular end-products. Postponement reduces the need for excess inventory and minimizes the risk of end-product obsolescence, mainly when demand for specific variations is uncertain. Since the generic product has a lower value compared to the particular end product, less capital is tied up in each stocked unit. |
| What is Consolidation (sammanslå)? | • To fill up a shipment with multiple orders to the same destination or customer • The fill rate is increased by the coordination of several smaller shipments • Delivery directly to the stock • Fixed delivery points in time • Distribution by Hub and Spoke – Hub = terminal (loading/unloading, sorting, storing), warehouses, distribution centres – Spoke = route – Coordination between hubs: larger shipments are separated and transported further to the customer – Flows of goods merge from the spokes to be separated or consolidated |
| What is Incoterms? | • When global companies enter contracts to buy and sell goods, they are free to negotiate (förhandla) specific terms: – These terms include the price, quantity, and characteristics of the goods. – Every international contract also contains what is referred to as an Incoterm, or international commercial term. • A set of international rules for the interpretation of the most used trade terms. • Applying Incoterms to sale and purchase contracts makes global trade easier and helps partners in different countries understand one another. • Lack of knowledge can lead to misunderstandings and disputes between customer and supplier. |
| What are the different transport costs? | Direct transport costs – Movement of goods – Loading – Unloading – Transshipment |
| What other transport costs is there? | – Packaging – Temporary storage – Damage to goods – Insurance – Cost for capital – Fines for waiting time – Customs / Duty – Forwarding agent / TPL – Administration and planning |
| What other factors affect transport pricing? | • Time and distance costs • Initial, threshold and marginal costs • Assets and transports costs • Terminal and variable costs |
| Additional factors affecting transport pricing? | • The volume of the goods • Density of the goods • Physical form of goods • Heat or refrigeration • Risk • Supply and demand |
| Describe 3 levels of planning horizons | Strategic: long-term 3-5 years+ and is reviewed annually Tactical: mid-term 1-2 years and is reviewed quarterly Operational: short-term, daily-1 year and is reviewed daily or weekly |
| Distribution planning considered.. | Strategic or tactical |
| Transport planning is considered.. | Is considered a tactical or operational problem. mostly outbound flow and rarely inbound flow (utgående transport ex) We could plan inbound flow if it’s crucial for our production. |
| What issue does Traveling salesman problem (TSP) solve? | Solves the issue of minimizing the cost of having several customers that must be visited and then return home. |
| When is heuristics used instead of Traveling salesman problem? | Heuristics are used instead for whenever the problem gets too big |
| Name an issue with Traveling salesman problem | Considered “NP-hard” (computation time increases substantially as the number of customer increases) |
| What is Vehicle routing problem (VRP) and its aim? | Like TSP almost, there are a set of depots, a set of customers with known demands and vehicle/vehicles with capacities. Also aims to minimize cost of delivery. |
| Most common formulations of VRP? | Can be formulated in many ways but the most common are Network models, Set Partitioning models, and Network flow models. |
| What differs between different formulations of VRP? | Each formulation has pros and cons, ex Understandability, Solution times. |
| Extensions of VRP could be? | Return of products Pick-up and delivery (Pick something that’s required from one location or more and then to the customer) Time windows, if there are specific times of delivery to the customer or the depot. Arc routing, if you have to visit every arc/path at least once instead of every node/customer. Split delivery Multiple periods (produkten ska levereras nån gång i veckan exempelvis) Dynamic VRP (kombinera efterfrågan med efterfrågan i realtid, ex vi ska leverera 8 i veckan men dem efterfrågar 10 helt plötsligt) |
| Common types of costs in different Variants of VRP formulations (vad för info kan vi söka efter) | Vehicle types Fixed cost per tour (motsvarar administrativa kostnader) Costs in proportion to transported distance (motsvarar löner, bränsle, slitage, etc) Costs per customer visited (motsvarar administrativa kostnader) Costs in proportion to delivered amount, loading and unloading cost (lastning- avlastningskostnader) |
| Alternative objective functions could be.. | Minimize driving distance Minimise driving time Minimise emissions Minimise number of vehicles Minimise delivery time to customer Maximise number of visited customers Maximize amount of delivered goods Maximise fill rate of vehicles |
| What Simplifications of VRP could be made in real life.. | Experience (erfaren) Fixed routes (Rutterna är redan kända) Fixed areas of service per vehicles etc (kända platser där fordonen servas) Optimization? Simple heuristics, for example Clarke & Wright |
| Solutions principles for VRP.. | Optimization-based methods (lösningen ska vara optimeringsbaserad) - Solve standard formulation/SPP with AMPL/CPLEX - Relaxations & Branch-and-Bound Often combined with heuristics for feasibility (Dvs kombineras med heuristiker för att det ska bli mer praktiskt) - Limited on CPU or on optimality gap (Begränsas av våra datorers förmågor eller av optimality gap som är skillnaden/differensen mellan den bästa kända lösningen och det värdet som är vår lower bound. Lower bound värdet är typ det vi tror att vi kan uppnå, i detta fall är det minimeringsproblem) |
| Sweep heuristic characteristics.. | Easy and fast: can be run several times, with different start angles and directions. Usually only for one-size fleet (samma kapacitet på varje fordon) Using the underlying assumption of Euclidean distance (Euklidiskt avstånd är ett enkelt streck mellan två punkter, det antas alltså att det används) |
| Basic heuristic for VRP (solving heuristic).. | Assign a vehicle/rout for each single customer alone. Compute the savings value of merging customers. Make a list in decreasing savings value order. Merge customers as long as possible |
| Heuristics | Solution methods are usually specified/adapted for the problem (Aim is to generate a good solution that is feasible with a reasonable computation time) The quality of the solution is not guaranteed to be globally optimal, might generate local optimum. Often based on the problem and necessarily on the mathematical model Useful in difficult combinatorial optimization problems and in finding feasible solutions for pessimistic bounds (Bra vid problem där många faktorer spelar roll och för att hitta lower och upper bounds, pessimistisk i detta fall betyder att bounds troligtvis inte stämmer, alltså kanske inte går att uppnå så bra lösning) |
| Why and when to use heuristic | Whenever optimization problems have long computation times and requires huge amount of memory. The input data includes uncertainties. Easier for readers with little background to understand rather than having a mathematical model |
| Different types of heuristics | Constructive heuristics, Local search methods, Metaheuristics, Approximation algorithms |
| Constructive heuristics.. | Successfully constructs a feasible solution Often used for first time solutions A common type is “greedy algorithm” Starts with no prior solutions and finishes when feasible solution is found Called greedy because it only looks for what’s best in the next step Examples for TSP: Nearest neighbor, Nearest insertion, Nearest merger |
| Local search methods.. | Starts with a feasible solution and iteratively improves the solution A common type is “nearest neighbour” |
| Metaheuristics.. | Heuristics with built in methods to prevent them from getting stuck at local optima A common type is “Tabu-search” |
| Approximation algorithms.. | Gives a guarantee on how far the objective function value is from the optimal value Often bad in practical cases but interesting for the theoretical |
| Nearest Neighbor.. | 1. Start in any node. 2. Go to nearest neighboring node that is not included. 3. Continue until all nodes are included. |
| Nearest Insertion.. | 1. Start in any node, creating a subtour T 2. Find the node k closest to any node in T 3. Put k in the best place in the tour T 4. Continue until all nodes are included |
| Local search in convex problem.. | We can find Global optimum if we design an intelligent search method |
| Local search in non-convex problem.. | We will most likely get stuck in a local optima Solution will depend on the starting point and Neighborhood definition |
| Branch & Bound is a.. | Solution strategy for integer programming problems where the idea is to split the feasible region into smaller regions and solve a relaxed problem in each subproblem. |
| Branch & Bound (trädsökning) steps? | 1. First step is to solve the relaxed subproblem 2. Branch on which variable 3. ≥ or ≤ 4. Depth or breadth first |
| What is E-trade? | • Any way of doing business using the internet – Online shopping • Private persons • Companies – Industrial e-trade • It is far bigger than online shopping, but less complicated – Internal, web-based ordering system |
| What is Industrial e-trade (B2B)? | • Industrial e-trade: – Big amount of demand delivered to few customers points – Long lead times – Multiple supply chain levels – Specific (and agreed) delivery conditions |
| What is Online shopping? | – Much smaller deliveries, over much larger geographical areas – Shorter lead-times – Fewer levels in the supply chain – Overall delivery conditions |
| What are the different VRP-aspects of e-trade? | Time windows Fleet (flotta) mix and vehicle choice Different transportation/delivery modes Shortest path in a city Multi-dimensional planing (veritkal planering att levera till kund i t.ex. byggnader) Return logistics Inventory management |
| What is Time windows? | • What critical time windows can you think of that affect e-trade and its logistics, especially in an urban setting? – Delivery time windows (En tid när leveransen är beräknad att levereras) – Access time windows • Parking places • Streets accessibility |
| What is Fleet (flotta) mix and vehicle choice? | • Not only the distance from point A to point B is important – It might consist of long hauls (sträckor) and city logistics (usually the last mile logistics) • In Long hauls usually big trucks and lorries are used • In city logistics and last-mile logistics smaller vehicles are used • It might be necessary to utilize (utnyttja) distribution centers and consolidation |
| What is Different transportation/delivery modes? | • Drones – Their routing might be easier as they do not need to follow roads – Subject to aviation rules (luftfartsregler) – Cannot function under all weather conditions – (More) limited capacity • Bikes – Limited delivery capacity – Similar routing problems as vehicles (both use roads) |
| What is Shortest path in a city? | • In a city (or even outside city) the path from point A to point B does not have the same length as the path from point B to point A – On-way streets – Obstacles (hinder) on one side of roads – Left turn / right turn – Time considerations (trängsel i vissa tider på vissa områden) • Cost considerations – Driving times – Waiting times (e.g., loading, unloading, parking/docking) |
| What is Multi-dimensional planing (veritkal planering att levera till kund i t.ex. byggnader)? | – Elevators in high buildings – Time and cost not only related to being in the vehicle – Capacity of individual and load carrier and elevator! – Time windows for deliveries, within the building – Parking possibilities and fees |
| What is Return logistics? | • Online shopping entails (medför) a high level of returns • In logistics planning and costs calculations the returns need to be considered • Who pays the return cost, the consumer or seller? • What is the environmental impact of it? |
| What is Inventory management? | • When should a company (seller) order new products and how much? – Known demand vs. Estimated demand – Current Inventory • Returns affect it – Affecting the production rate of the company or its supplier – Affecting the functions of warehouses |
| What does cooperation mean? | Cooperation is the interaction between agencies and organizations that does not require sharing of any resources; primarily done through communication and information |
| What does Competition mean? | The effort of two or more parties acting independently to secure the business of a third party by offering the most favourable terms |
| To not cooperate? | • In case of a cooperation offer, we must think – Which other parties exist that will cooperate if we don’t – What alternative agreements (Kan vi utöva) and what alternative agreements we might want to take instead • How can we ensure that we don’t lose our market share to our competitors, but not losing our competitive edge through cooperation either |
| To cooperating? | • Cooperation can lead to improvements – Profitability (or cost reduction) – Environmental aspects – Flexibility • Win/win: less complicated decision making • Still, win is often not enough to secure cooperation (especially among competitors) – How are common costs (or gains) allocated among the cooperating parties? (Hur fördelas kostanderna och vinsterna) |
| What is Coopetition (Samarbete och konkurrens möts)? | – COOPeration + comPETITION → coopetition • Coopetition is “cooperating with a competitor to achieve a common goal or make a progress” Detta kan ske när företag väljer att samarbete med varandra t.ex. använda facebook login i en app. |
| What is Supply chain network planning? | Supply chain network planning refers to the strategic process of designing and optimizing the structure of a company's supply chain network. It involves determining (Bestämma) the optimal locations such as manufacturing plants, distribution centers, and warehouses, as well as the flows of materials, products, and information between them |
| What is the goal with Supply chain network planning? | The goal is to achieve a balance between costs, service levels, and efficiency by considering factors like demand, transportation costs, lead times, and market reach. Through supply chain network planning, companies can improve overall supply chain performance to meet customer demands effectively. |
| Specify which parts are included in Supply chain network planning? | Supply chaing network planning • Supply Chain Network – Often not ONE chain • Events in one chain also affect another chain, or the network as a whole – Network of Nodes and Links • Supply Chain decisions consider not only one entity/node |
| What is Network analysis? | 1. Identify members in the supply chain – Primary members (viktiga) – Secondary members (inte lika vikitga) – Map only the primary members 2. Structural dimension of the network – Horizontal structure – Vertical structure – Positioning • Position of the studied company, in the network |
| What is the Supply chain aspects? (Related attribute) | • Type of purchasing • Type of production • Type of distribution • Type of sales Structural attributes • Topography of the Supply Chain • Integration and coordination |
| What is the Supply chain aspects? (Focus on important parts of the supply chain) | – Important products – Important objectives (mål) • Interesting to understand – Structural and functional limitations – Alternative organizational solutions – Potential improvements – Necessary planning and control mechanisms |
| How does form create competitive value? | 1. Physical properties of the product 2. Quantity 3. What |
| How does Place create competitive value? | 1. Place conditions 2. Locations |
| How does Time create competitive value? | 1. Time conditions 2. When? |
| When is Closed loop supply chains (CLSC) & Reverse Logistics used.. | Is often used to recover the embedded value in some products or some specific part of the product |
| Closed loop SC and reverse logistics can be divided into 3 parts.. | 1. waste management where recycling is central (avfallshantering) 2. product recovery management where remanufacturing and refurbishing (renovering) is central 3. direct reuse which often is the least complex part with for instance only repackaging or reparation |
| Difficulties in returns.. | 1. Forecasting of available returns (Prognos av tillgänglig avkastning) 2. Route planning 3. Warehouse management & storage options 4. Inventory management 5. Production planning |
| Reverse Logistics (När vi ska återvinna).. | 1. Sorting function 2. Requires competence, knowledge and knowledge of the market 3. In principle - the closer to the consumer, the more high-quality returns 4. But, the closer to the consumer the (more) specialized return systems 5. Which in turn risks becoming ineffective 6. Who pays for the return flow chain |
| Where in the chain of return flows, does the return item move from a negative to a positive value? | Initially, when a product is returned, it is considered a negative value as it represents a loss for the company due to customer dissatisfaction, product defects, or other reasons. Such as refurbishing (renovera) the returned item to resell it as a refurbished product, repairing the product to bring it back to working condition. |
| What is Packaging design drivers? | 1. Ergonomics 2. Logistics - Handling, Lifting, Loading/Unloading, Warehousing 3. Sustainability - - Economic sustainability (Improved sales and reduced costs). Environmental sustainability (Reduction of waste and materials, recycling, waste recovery). Social sustainability (Transparent, honest and understandable information) 4. Safety - Content safety (Ett pakets innehåll ska hållas säkert), Ecosystems and Human health safety 5. Marketing - Attraction of the product and Visibility |
| What is the goal with packaging? | Packaging refers to an enabling system designed to protect and ensure the effective and efficient transport, handling, and storage of a product throughout the supply chain Packaging includes the design, production, and use of containers (behållare), materials, and technologies to protect and transport goods from manufacturers to end consumers. Effective packaging ensures prevents damage or spoilage, facilitates (underlättar) efficient handling and transportation, and provides essential information to consumers. |
| What is Packaging most researched topics? | 1. Consumer Behaviour (Efficiency, packaging, design) 2. Enviromental Pollution (Emissions, CO2, reduction) 3. Circular Economy (Circular economy, food waste, resource, energy) 4. Waste Management (Plastic, logistics, packaging systems, crate boxes) 5. Resource Conservation (Distribution, life cycle assessment) 6. Operational management (Design, performance, reverse logistic, recycling) |
| What is Sustainable packaging logistics (SPL)? | The process of designing, implementing and controlling the integrated packaging, product and supply chain systems. |
| Provide a few examples of packaging in the supply chain? | Primary Packaging Secondary Packaging Tertiary Packaging Protective Packaging Sustainable Packaging Retail Packaging Bulk Packaging |
| What is Primary Packaging? | Primary Packaging: This refers to the packaging that comes into direct contact with the product. Examples include bottles, cans, jars, blister packs, or pouches. Primary packaging protects the product from contamination (nedsmutsning), preserves its freshness, and provides convenience for consumers |
| What is Secondary Packaging? | Secondary Packaging: Secondary packaging refers to the additional layer of packaging that holds multiple units of primary packaging together. It serves to group and protect primary packages during transportation and handling. Examples include cardboard boxes, shrink wrap, or corrugated cartons. |
| What is Tertiary Packaging? | Tertiary Packaging: Tertiary packaging involves packaging units of secondary packages for efficient handling and transportation. It typically includes pallets, stretch wrap, or containers used for bulk shipment. Tertiary packaging ensures stability, protection, and easy identification during storage and distribution. |
| What is Protective Packaging? | Protective Packaging: This type of packaging focuses on providing cushioning (dämpning) and protection to fragile (ömtåliga) or sensitive products. It may include materials such as bubble wrap, foam inserts, or air pillows to absorb shocks and vibrations during transit. |
| What is Sustainable Packaging? | Sustainable Packaging: With increasing environmental concerns, sustainable packaging aims to minimize the environmental impact of packaging materials. It includes options like biodegradable or compostable materials, recyclable packaging, or reduced packaging waste. |
| What is Retail Packaging? | Retail Packaging: Retail packaging is designed to attract consumers' attention and enhance the product's market appeal on store shelves. It often includes branding elements, attractive graphics, and product information to communicate with customers. |