Supply Chain Routing in a Diary Industry Using Heterogeneous Fleet System: Simulation-Based Approach
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ORIGINAL CONTRIBUTION
Supply Chain Routing in a Diary Industry Using Heterogeneous Fleet System: Simulation-Based Approach Mahadharsan Ravichandran1 • R. Naresh2 • Jayakrishna Kandasamy1
Received: 31 January 2020 / Accepted: 27 May 2020 Ó The Institution of Engineers (India) 2020
Abstract In this paper, an attempt is made to study and improve the transportation facilities of a milk industry using a simulation model developed using Arena. The objective of the proposed simulation model is to demonstrate the optimality of the type of truck that needs to be utilized while transporting the milk keeping into mind the sustainable factors such as environmental and social factors. The case study data have been collected from eight different villages for the quantity of milk supplied and the transportation time from these villages to the respective bulk milk coolers. Based on the data transportation, time histograms are plotted. From these histograms, the goodness of fit line representing the probability distribution curve for all different areas was identified. An Arena-based simulation model was developed for optimization and comparison with the current model. From the findings of the research, it is concluded that the optimized heterogeneous fleet supply chain model is more suitable for the dairy industry, as it is more economically viable and environmentally friendly. The proposed simulation model will aid in the process of decision-making on problems related to logistics and supply chain in similar dairy units. Keywords Diary sector Supply chain Optimization Inventory routing problem Arena Heterogeneous fleet system
& Jayakrishna Kandasamy [email protected] 1
School of Mechanical Engineering, VIT University, Vellore, Tamil Nadu 632014, India
2
AMAZON, Bangalore, India
Introduction There is growing consensus that carbon emissions are directly affecting the environment and is one of the major reasons for global warming [1]. Governments all over the world are bringing in new rules and regulations to resolve this problem [2]. This is directly affecting the firms, who are forced to reduce their carbon footprint in their manufacturing [3]. Hoff et al. [4] stated that organizations consider only the costs associated with transport. But carbon footprints associated with the supply chain are often not considered. Recently, researchers started exploring carbon footprints. To sustain in the market, many companies are making a rapid transition towards eco-friendly business practices in cohesion with the stringent environmental regulations of the governing bodies [5]. For instance, many innovative strategies, such as Walmart’s ‘‘Sustainability 360’’, Ford’s strengthening value chain and Kodak’s reverse supply chain, have identified the opportunities of green supply chain management [6–8]. All major manufacturing activities, such as production, transportation and inventory management emit greenhouse gases [9]. As per the international transport forum report [10], transportation alone is responsible for 15% of
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