Eric Ballot

Interconnected logistic networks and protocols: simulation-based efficiency assessment

Logistic networks intensely use means of transportation and storage facilities to deliver goods. However, these logistic networks are still poorly interconnected and this fragmentation is responsible for a lack of consolidation and thus efficiency. To cope with the seeming contradiction of just-in-time deliveries and challenging emissions targets, a major improvement in supply networks is sought here. This new organisation is based on the universal interconnection of logistics services, namely a Physical Internet where goods travel in modular containers for the sake of interconnection in open networks. If from a logical point of view, merging container flows should improve efficiency, no demonstration of its potential has been carried out prior to the here reported research. To reach this potentiality assessment goal, we model the asynchronous shipment and creation of containers within an interconnected network of services, find the best path routing for each container and minimise the use of transportations means. To carry out the demonstration and assess the associated stakes, we use a set of actual flows from the fast-moving consumer goods sector in France. Various transportation protocols and scenarios are tested, revealing encouraging results for efficiency indicators such as CO2 emissions, cost, lead time, delivery travel time, and so forth. As this is a first work in the field of flows transportation, the simulation model and experiment exposes many further research avenues.

A Computation Method for the Consequences of Geometric Errors in Mechanisms

The work presented here goes along the research for the principles that, starting from functional requirements, allow to compute the nature and value of tolerances on each part of a mechanism. In comparison with A.Clement’s or J.Turner’s works, our contribution is included in the formal description of the elements of tridimensional tolerance chains. This approach is built upon two elements, a modelization of geometric errors and a method of computation for their propagation inside of a mechanism. The modelization of geometric variations proposed here is founded upon the association of small displacement torsors to the different types of deviations that can be met in a mechanism. From then on, determining the parts’ small displacements under the effect of deviations and of gaps of the parts in a mechanism, becomes a computation of the composition of the modelized geometric errors. This computation of each part’s position yields two results. First, the formal determination of the part’s position in the mechanism in relation with the chains of influent geometric variations influenced by the parts’ surfaces. Then, the description of a combina- tory of a mechanism’s configurations. The application of this method shows the results obtained as well as the possibilities of extension towards a tolerancing aiding tool.

Physical Internet Foundations

This paper provides insights into the foundations of the Physical Internet that has been introduced as a solution to the Global Logistics Sustainability Grand Challenge [1-2]. The Challenge sets as its goal to improve, by an order of magnitude, the economic, environmental and social efficiency and sustainability of the way physical objects are moved, stored, realized, supplied and used across the world. The paper introduces a formal definition of the Physical Internet as an open global logistics system founded on physical, digital and operational interconnectivity through encapsulation, interfaces and protocols. It is a perpetually evolving system driven by technological, infrastructural and business innovation. In line with the proposed definition, this chapter explains and provides insights into eight foundations of the Physical Internet: a means for logistics efficiency and sustainability, universal interconnectivity, encapsulation, standard smart interfaces, standard coordination protocols, logistics web enabler, an open global logistics system, and driven by innovation.

Physical Internet Enabled Open Hub Network Design for Distributed Networked Operations

Supply networks are still mainly based on organizations essentially centralized, dedicated and thus fragmented, whose sustainability becomes ever more problematic nowadays. The recently introduced Physical Internet tackles this problem by interconnecting all the logistics services through the encapsula- tion of the goods in smart modular containers. Within this framework, network adaptation with distributed routing problems take the lead over classical net- work design with flow assignment problems. Thanks to recent progresses made in the Digital Internet domain, decentralized approaches are foreseen to be ap- plied for solving those problems on the large scale mandated by the Physical In- ternet. This leads us to propose here an evolutionist approach to solve the Physical Internet open hub network design problem. We model the problem, formally introduce the design approach, analyze empirical results and provide conclusion remarks and opportunities for further research.

Perspectives of inventory control models in the Physical Internet

We reveal a new research field of inventory management in the Physical Internet Network.We identify the particularities of inventory management in the Physical Internet Network.We define the initial criteria for selecting replenishment point in the Physical Internet Network.We assess the performance of the criteria under (Q,R) policy via simulation study.The results show that criteria have very different performance and sensitivity to the logistics cost. Classical supply chain design relies on a hierarchical organization to store and distribute products over a given geographical area. Within this framework, a stock shortage affects the entire downstream section of the supply chain, regardless of the stocks kept in other locations. With the implementation of the Physical Internet (PI) approach, of which the aim is to integrate logistics networks into a universal, interconnected system, inventories can be divided among shared hubs that serve the market and allow for Source Substitution. This contribution measures the impact of such an organization on inventory levels and costs, with service level being set as a constraint. The analysis focuses on the resource levels (transportation and inventory) required by the current supply model and by the Physical Internet system to serve a market with a (Q,R) stock policy. Starting with two supply models and with the definition of cost models, as well as inventory policy, the work is based on computer simulation. The analysis tested three different categories of criteria to allow dynamic source selection when an order is placed: Source Substitution, Minimum Ratio and Minimum Sum. Source Substitution, one of the simplest criteria, was determined to be the most efficient and stable according to different scenarios. The main intent of this paper is to define the new research question related to inventory management in a Physical Internet Network and to provide a view of how the PI affects traditional inventory control policies.

Physical Internet and Interconnected Logistics Services: Research and Applications

Within the 55-year history of International Journal of Production Research, the field of logistics and supply chain management has witnessed tremendous paradigm shifts. The field has motivated a wealth of highly studied topics in production research. Many influential articles related to the topic are published by the Journal. The most cited articles include: Goyal (1977), Shih (1980) and Hill (1999) focusing on inventory control models in supply chain; Krikke, Bloemhof-Ruwaard, and Van Wassenhove (2003) studying close-loop supply chain design; Gunasekaran and Kobu (2007) and Arzu Akyuz and Erman Erkan (2010) being interested in supply chain performance measurement; Vachon (2007), Zhu and Sarkis (2007) and Zhu, Sarkis, and Lai (2012) investigating green supply chain management; Rubio, Chamorro, and Miranda (2008) paying attention to reverse logistics; and Bhamra, Dani, and Burnard (2011) to supply chain resilience. These articles cover a broad spectrum of important scientific issues of logistics and supply chain management research. Recent rapid developments have shown greater attention and interests than ever before. This special issue of Physical Internet and interconnected logistics services: research and applications, is one of the continuing efforts of this Journal in logistics and supply chain research. The special issue is devoted to Physical Internet a recent concept of breakthrough innovation aiming to improve by an order of magnitude the economical, environmental and societal efficiency and sustainability of the way physical objects are moved, deployed, realised, supplied, designed and used. The term ‘Physical Internet’ was for the first time mentioned in the domain of logistics in June 2006, on the front page of The Economist (Markillie 2006) issue devoted to a state-of-the-art review of logistics practice. Even though it made the front page, the term was not further elaborated in any of the articles. Professor Benoit Montreuil, then in the CIRRELT Centre at Université Laval (Québec, Canada), was enthralled by the Physical Internet term, its potential meaning and significance. Financed through his Canada Research Chair in Business Engineering and his Canadian Discovery grant on supply network innovation, he engaged in a multi-year journey devoted to creating a vision exploiting for physical objects the metaphor of the Digital Internet that has revolutionised information and communications technologies (ICT), the ICT industry and eventually industry and society at large. As he was shaping the vision of what a Physical Internet could be, he had to investigate why in the world should be challenged the current integrated paradigm at the core of logistics and supply chains, instead of keeping on relying on a continuous improvement path. His journey has lead him in 2009 to start openly publishing on line gradually evolving versions of the Physical Internet Manifesto with several contributions. Professors Éric Ballot (Centre de Gestion Scientifique, Mines ParisTech, France) and Russell Meller (CELDI, U. Arkansas, U.S.A.) were first to join the Physical Internet in 2009. The team pioneered research on the Physical Internet by initiating and leading high-impact research projects. Professors Ballot and Montreuil lead an OpenFret France-based project towards contributing to the conceptualisation and realisation of a Physical Internet in 2010. Professor Rémy Glardon joined them in leading a France-Canada-Switzerland project sponsored by the PREDIT programme in France, aiming to simulate the potential contribution of the Physical Internet to the resolution of the logistics challenges, with a focus on application to fast moving goods logistics in France in 2011 and 2012. In the U.S.A., Professor Meller successfully lead with Professor Kim Ellis (Virginia Tech), Bill Ferrell (Clemson U.) and Phil Kaminsky (UC Berkeley), a NSF-sponsored project in the CELDI research centre to assess the potentiality of the Physical Internet in North America. Professors Meller and Montreuil lead a project supported by MHI in America, focused on Physical Internet facilities design. Professor Benoit Montreuil introduced a comprehensive vision for a Physical Internet, delineated the concept in a mosaic of thirteen interlaced characteristics, positioned to meet the Logistics Sustainability Grand Challenge (Montreuil 2009–2012). The essence of the PI Manifesto was formally introduced as a journal paper in Montreuil (2011). Europe has been a fertile ground for Physical Internet research and innovation. Through the pioneering initiative of Sergio Barbarino from the Supply Network Innovation Centre of Procter & Gamble, who teamed up with Professors Ballot, Meller and Montreuil, a first PI project was submitted to the 7th Framework Programme of the European Commission, leading to multi-million

Determination of relative situations of parts for tolerance computation

funding by the commission. Focused on the consumer goods industry, the

Mitigating supply chain disruptions through interconnected logistics services in the Physical Internet

This work is to contribute to three goals: a mathematical model of part geometric deviations, computation principles for three dimensional tolerance chains and a tolerance scheme in a mathematical form. We use an example to show present conclusions of this work according to the second goal. Then, we focus on a new problem faced in achieving the whole process of tolerancing. If the small displacement torsor is a useful tool to describe the relative situation of two simple surfaces, it’s more difficult to describe the relative situation of two parts involving several different couples of surfaces, what is wanted in mechanism study. We first explain the combinatory nature of this problem and ways to reduce it.

On the Activeness of Physical Internet Containers

This paper investigates the resilience of inventory models using interconnected logistics services in the Physical Internet (PI). With traditional supply chain network design, companies define and optimise their own logistics networks, resulting in current logistics systems being a set of independent heterogeneous logistics networks. The concept of PI aims to integrate independent logistics networks into a global, open, interconnected system. Prior research has shown that new inventory models enabled by and applied to PI could help reduce inventory levels thanks to its high flexibility. Continuing along these lines, this paper examines how inventory models applying PI deal with disruptions at hubs and plants. To attain this, a single product inventory problem with uncertain demands and stochastic supply disruptions is studied. A simulation-based optimisation model is proposed to determine inventory control decisions. The results suggest that the PI inventory model, with greater agility and flexibility, outperforms the current classic inventory models in terms of resilience. Moreover, the difference in performance increases when the product value, penalty costs and disruption frequency increases. This paper indicates a novel approach to build a resilient supply network.

Allocation of Transportation Cost & CO2 Emission in Pooled Supply Chains Using Cooperative Game Theory

The aim of the innovative Physical Internet (PI) concept is to reverse the unsustainability situation existing in current logistic systems. In the PI approach, the goods are encapsulated in modularly dimensioned, reusable or recyclable and smart containers, called PI-containers. This paper focuses on the design of such containers and more particularly on their associated activeness. This capability allows the PI-container to have an active role for its mission and in the PI management and operation. After a presentation of the physical and informational requirements associated to PI-containers, the notion of activeness is detailed and the main research issues are presented.