PDF Supply Chain Engineering and Logistics Handbook-Inventory and Production Control 1st Edition Erick C. Jones (Author) Download
PDF Supply Chain Engineering and Logistics Handbook-Inventory and Production Control 1st Edition Erick C. Jones (Author) Download
PDF Supply Chain Engineering and Logistics Handbook-Inventory and Production Control 1st Edition Erick C. Jones (Author) Download
com
https://textbookfull.com/product/supply-
chain-engineering-and-logistics-handbook-
inventory-and-production-control-1st-edition-
erick-c-jones-author/
textbookfull
More products digital (pdf, epub, mobi) instant
download maybe you interests ...
https://textbookfull.com/product/global-logistics-and-supply-
chain-management-lalwani/
https://textbookfull.com/product/logistics-supply-chain-
management-martin-christopher/
https://textbookfull.com/product/operations-logistics-and-supply-
chain-management-henk-zijm/
https://textbookfull.com/product/computational-intelligence-in-
logistics-and-supply-chain-management-1st-edition-thomas-hanne/
Inventory and Production Management in Supply Chains
Fourth Edition Edward A. Silver
https://textbookfull.com/product/inventory-and-production-
management-in-supply-chains-fourth-edition-edward-a-silver/
https://textbookfull.com/product/logistics-and-retail-management-
emerging-issues-and-new-challenges-in-the-retail-supply-chain-
fifth-edition-edition-john-fernie/
https://textbookfull.com/product/handbook-of-information-
exchange-in-supply-chain-management-1st-edition-albert-y-ha/
https://textbookfull.com/product/procurement-and-supply-chain-
management-kenneth-lysons/
https://textbookfull.com/product/software-supply-chain-security-
securing-the-end-to-end-supply-chain-for-software-firmware-and-
hardware-1st-edition-cassie-crossley/
Supply Chain Engineering and
Logistics Handbook
Supply Chain Engineering and
Logistics Handbook
Inventory and Production Control
Erick C. Jones
MATLAB® is a trademark of The MathWorks, Inc. and is used with permission. The MathWorks does not warrant the
accuracy of the text or exercises in this book. This book’s use or discussion of MATLAB® software or related products
does not constitute endorsement or sponsorship by The MathWorks of a particular pedagogical approach or particular
use of the MATLAB® software.
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been
made to publish reliable data and information, but the author and publisher cannot assume responsibility for the
validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the
copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to
publish in this form has not been obtained. If any copyright material has not been acknowledged, please write and let
us know so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or
utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying, microfilming, and recording, or in any information storage or retrieval system, without written
permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://
www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA
01923, 978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users.
For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been
arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
Preface.....................................................................................................................................................xiii
Acknowledgments..................................................................................................................................... xv
Author..................................................................................................................................................... xvii
3 Evaluating the Impact of Sustainability and Pipeline Quality on the Global Crude Oil
Supply Chain................................................................................................................................... 49
Erick C. Jones and Sunny Paraskumar Jain
3.1 Introduction............................................................................................................................ 49
3.2 Research Significance............................................................................................................ 50
3.3 Research Questions and Hypothesis.......................................................................................51
3.4 Research Purposes..................................................................................................................51
3.5 Background............................................................................................................................ 52
3.6 Research Methodology.......................................................................................................... 63
3.7 Results.................................................................................................................................... 68
3.8 Conclusion.............................................................................................................................. 82
Appendix 3.A: U.S. Petroleum and Other Liquids Production, Estimated Consumption, and
Net Imports (1995–2013) (million barrels per day)............................................................... 87
Appendix 3.B: U.S. Net Imports of Crude Oil and Petroleum Products from Saudi Arabia,
Canada, Russia, and Colombia (2004–2014) (thousand barrels per day).............................. 88
v
vi Contents
Appendix 3.C: Russia Crude Oil Production, Consumption, and Net Exports (1992–2013)
(thousand barrels per day)...................................................................................................... 88
Appendix 3.D: Colombia Crude Oil Production, Consumption, and Net Exports (1990–
2013) (thousand barrels per day)........................................................................................... 89
References......................................................................................................................................... 89
5 Inventory Control...........................................................................................................................141
Erick C. Jones
5.1 Inventory Carrying Costs.....................................................................................................141
5.2 Inventory Flows....................................................................................................................145
5.3 Fixed-Order-Interval System............................................................................................... 146
5.4 Just-in-Time Inventory Systems............................................................................................147
5.5 R FID and Inventory Control................................................................................................147
5.6 Automatic Replenishment.....................................................................................................147
5.7 Safety-Stock Reduction.........................................................................................................148
5.8 Picking and Routing.............................................................................................................148
5.9 Order Batching of Waves......................................................................................................148
5.10 Summary...............................................................................................................................149
References........................................................................................................................................149
6 ERP Systems...................................................................................................................................151
Erick C. Jones and Gowthaman Anantakrishnan
6.1 Research Summary...............................................................................................................151
6.2 Background and Introduction...............................................................................................152
6.3 Research Question, Hypothesis, and Objectives..................................................................168
6.4 Research Methodology and Data Collection........................................................................169
6.5 Results...................................................................................................................................171
6.6 Conclusion............................................................................................................................ 196
6.7 Limitations and Future Research......................................................................................... 196
Appendix 6.A: Survey..................................................................................................................... 196
References....................................................................................................................................... 196
9 How Total Quality Management and Lean Six Sigma Drove Need for Supply Chain
Integration..................................................................................................................................... 273
Erick C. Jones
9.1 Introduction.......................................................................................................................... 273
9.2 Perspectives on Quality....................................................................................................... 275
9.3 TQM and Quality Overview................................................................................................ 277
9.4 W hat If Quality Is Too Expensive to Justify?...................................................................... 279
9.5 Integrating TQM with LSS Techniques.............................................................................. 283
9.6 Voice of the Customer......................................................................................................... 285
viii Contents
10 A Relationship between Six Sigma and Malcolm Baldrige Quality Award............................ 339
Mellat-Parast M. and Erick C. Jones
10.1 Introduction.......................................................................................................................... 339
10.2 The Baldrige Model for Quality.......................................................................................... 339
10.3 Six Sigma Methodology....................................................................................................... 340
10.4 The Baldrige Model and Six Sigma..................................................................................... 340
10.5 Implementing Six Sigma within the Baldrige Model...........................................................341
10.6 Integrating Six Sigma with the Baldrige Model.................................................................. 342
10.7 The Case for Motorola......................................................................................................... 342
10.8 Conclusion............................................................................................................................ 344
References....................................................................................................................................... 344
11 Evaluating Increasing Hospital Closure Rates in U.S.: A Model Framework and Lean
Six Sigma Deployment Approach for Quality Improvement Initiatives to Prevent
Further Closures in Rural and Disadvantaged Locations........................................................ 347
Soma Sekar Balasubramanian and Erick C. Jones
11.1 Introduction.......................................................................................................................... 347
11.2 Purpose of this Research..................................................................................................... 348
11.3 Research Objectives............................................................................................................. 348
11.4 Background.......................................................................................................................... 349
11.5 Methodology........................................................................................................................ 358
11.6 Analysis/Results.................................................................................................................. 366
11.7 Contribution to the Body of Knowledge.............................................................................. 400
11.8 Conclusions and Discussions............................................................................................... 400
Appendix 11.A ............................................................................................................................... 402
References....................................................................................................................................... 405
14 Evaluating the Impacts of the Internet of Things to Reduce Runway Incursions.................. 443
Samuel Innanore Okate and Erick C. Jones
14.1 Introduction.......................................................................................................................... 443
14.2 Purpose of This Research.................................................................................................... 445
14.3 Research Objectives............................................................................................................. 445
14.4 Organization of this Dissertation......................................................................................... 447
14.5 Background.......................................................................................................................... 447
14.6 Methodology........................................................................................................................ 454
14.7 Experimental Procedure...................................................................................................... 459
14.8 Results and Conclusions...................................................................................................... 460
Appendix 14.A: Human Causal Element Data Collection per Airport............................................478
References....................................................................................................................................... 483
19 Evaluating the Impact of Sleep Disruptions in Women through Automated Analysis.......... 587
Shalini Gupta, Felicia Jefferson, and Erick C. Jones
19.1 Introduction.......................................................................................................................... 587
19.2 Research Purpose................................................................................................................ 590
19.3 Organization of This Dissertation....................................................................................... 590
19.4 Background...........................................................................................................................591
19.5 Research Methodology........................................................................................................ 601
19.6 Results.................................................................................................................................. 607
19.7 Contribution to the Body of Knowledge.............................................................................. 623
Appendix 19.A: Software Code...................................................................................................... 627
Appendix 19.B: Sensors Data......................................................................................................... 648
References....................................................................................................................................... 667
23 Logistics Ecosystems......................................................................................................................701
Juan Marcos Castillo
23.1 Smart Logistic Hubs.............................................................................................................701
23.2 Value-Added Logistics Services: The Panama Canal Example.......................................... 702
23.3 Data Analytics to Optimize Decision-Making Processes................................................... 705
23.4 Design and Analysis of Computer Experiments for Simulation......................................... 706
References........................................................................................................................................719
Index........................................................................................................................................................721
Preface
With the “Modern SCM for SMOR”, we hope to establish concepts and principles by which students,
supply chain management, logistics engineers, and operations research and management practitio-
ners and researchers will learn about Modern techniques for Supply Chain Management (SCM) in the
Service, Manufacturing, and Operations Research (SMOR) fields. Also, we will expand on how this field
is modernizing with concepts with ideas on the internet of things (IoT), Radio Frequency Identification
(RFID) and Automatic Identification (AutoID) enabling technologies, and cloud-based collaboration
IT technologies that process BIG DATA to optimize the supply chain.
The text is organized into three sections that focus on supply chain (SC) history, how the SC are
connected today, and where the SC field is going with current research. The overall intellectual merit
of the text is that it introduces a framework similar to sundial that allows an organization to determine
where their company may fall on the Supply Chain Technology Scale. The text will describe those
who are using more historic technologies, some companies that are using current collaboration tools
for connecting their SC to other global supply chains (GSCs), and the SCs that are moving more toward
cutting-edge technologies.
Student Learning Outcomes: Upon completion of this course, the student is expected to have
demonstrated his/her ability to know and properly use:
Some features of this book, which make it unique, are that it:
1. Presents a decision model for choosing the best Supply Chain Engineering (SCE) strategies for
Service and Manufacturing Operations with respect to Industrial Engineering and Operations
Research techniques
2. Presents an economic comparison model for evaluating SCE strategies for manufacturing
outsourcing as opposed to keeping operations in house
3. Demonstrates how to integrate automation techniques such as RFID into planning and
distribution operations
4. Summative history of multiple Industrial Engineering techniques on manufacturing and s ervice
industries that impact the GSCs
5. Case studies of SC inventory reductions using automation from automatic information
technology (AIT) and RFID Research from Dr. Jones’s RFID Supply Chain Lab
6. Case studies from Industrial Engineering consultants
7. Planning and scheduling classroom theory and problems
8. Transportation and SC classroom theory and problems.
Our overall goal for this text is for it to allow students to learn modern Industrial Engineering used
in modern GSC operations, allow military personnel and contractors to learn and use it with respect
to SC operations including modern automation Unique Item Identifier (UID) standards, and allow
xiii
xiv Preface
practitioners to learn and integrate the techniques into scheduling and planning operations at all levels,
from the strategic GSC level to the tactical scheduler and inventory control levels.
In general, we hope this text will be used as an academic text, practitioner’s handbook, and m
ilitary
contractor’s guide for using modern SC strategies that inform engineers, managers, and strategic
planners and can be used to educate individuals and organizations on how to cost-justify, understand,
and implement modern SC strategies, technologies, and large-scale re-engineering initiatives.
MATLAB® is a registered trademark of The MathWorks, Inc. For product information, please contact:
This book is the product of many long hours, hard work, and perseverance of not only the author but
also the strong team that supported this extensive effort. I wish to acknowledge the many members who
contributed to and were inspirational in this effort.
I want to thank first of all God, and my savior, his son Jesus Christ, for giving me the strength and
interest to complete this extensive task. Next, I want to thank my family—Erick, Chelsey, Morgan,
Christopher, Matthew, Darlene, George, Ranita, Shirley, Malcolm Sr., Felicia, Dwight, and Shelly—for
motivating me. I want to thank my graduate students for their enthusiasm to support this project and a
few of those who are not referenced in the text: Dhruvi, the real taskmaster; Dhaval; Krishna; Sathish;
Pranesh; and Jenish. I also wish to thank my colleagues and staff at the University of Texas at Arlington,
including Peter, Dereje, Lynn, Anand, Paul, Ann, Kimetha, and Sandra.
I want to thank my friends and colleagues at the National Science Foundation for providing additional
inspiration about the future: Jim, Karen, Dean, Nirmala, Earnestine, Giselle, Susan, Joerg, Criselda,
Tierra, Sean, Tyrone, Art, Leroy, James, Talitha, Heather, Andrea, Chi-Chi, Abi, Celeste P., Celeste,
Bob, Don, Paige, Bruce, Junhong, Eduardo, Tammie, Khershed, and Latanya. I may have missed some-
one, but it was great working with everyone.
I want to specially thank all my PhD and master’s thesis students for their contribution to the text.
I want to express my thanks to Dr. Billy Gray and Dr. Felicia Jefferson for their individual efforts to
enhance the text.
Also, I want to thank George and Elizabeth Pickett for the Endowed Professorship at the University of
Texas at Arlington; without their generous support, I could not have continued my research in the area
and completed this book.
I want to acknowledge all the great companies and representatives I have worked for in the sup-
ply chain world over the years, especially Tompkins and Associates; James Tompkins has been a life-
long inspiration. Others include the United Parcel Service, my first engineering job; Academy Sports
and Outdoors, my first Engineering Management and Executive Leadership opportunity; and Arthur
Anderson, LLP, where I was in leadership at the Executive level. I want to thank my alma mater, both
University of Houston, Central, and of course the Aggies, Texas A&M University, College Station.
I also want to thank the following professional organizations: the Institute of Industrial and Systems
Engineers (IISE), American Society for Engineering Education (ASEE), and American Association for
the Advancement of Science (AAAS). I also want to acknowledge the National Academies (NA) and
the National Academy of Engineering (NAE) for their inspirational activities that motivate me to keep
extending the boundaries of the Grand Challenges.
Thank you
Erick C. Jones
xv
Author
Dr. Erick C. Jones is a noted US Engineering Scientist. His fundamental theory on automated inventory
control, quality control, and management has impacted the fields of supply chain management, indus-
trial manufacturing, and industrial and systems engineering. He is the George and Elizabeth Pickett
Endowed Professor of Industrial, Manufacturing and Systems Engineering and Associate Dean for
Graduate Studies in the College of Engineering at the University of Texas at Arlington (UTA). Jones
joined UTA in 2010 after eight years at the University of Nebraska-Lincoln, where he rose to the rank
of Associate Professor with Tenure. He served as the Deputy Director of the UT Arlington Homeland
Security focused University Center SAVANT, and he serves as the current Director of the (RFID &
Auto-ID) RAID labs at UTA.
Dr. Jones’s background led him to be invited to National Science Foundation (NSF) as Program
Officer for the largest Engineering Investment in the country, the Engineering Research Center (ERC).
Also given his impact on graduate students he worked in the largest fellowship program in the country:
NSF Graduate Research Fellowships Program (GRFP). Until recently, Dr. Jones has served as a rotating
Program Director at the NSF. His programs included the GRFP, the Graduate Research Internship
Program (GRIP), and the Workforce Strand of the Education Core Research Program in the Education
and Human Resources Directorate. His last NSF detail was as a Program Director for the ERCs in
the Engineering Directorate. Dr. Jones was one of only a few program directors to serve in two NSF
Directorates.
Academic background
Dr. Jones graduated from Texas A&M University with a bachelor’s degree in industrial engineering in
May 1993. He later earned a master’s degree from the University of Houston, Houston, Texas, where
his thesis was “Turnover of Part-Time Hourly Employees in an Industrial Service Company” under
the guidance of Dr. Christopher Chung in May 1996. He further went on to obtain a PhD in industrial
engineering from the University of Houston while concurrently working in industry. Under the guidance
of his advisor, Dr. Chung, he worked on the topic “A Predictive SPC Model for Determining Cognitive
Voluntary Turnover before Physical Departure” and successfully conferred PhD in August 2003.
Industry background
Dr. Jones boasts a broad background that spans both industry and academia. Dr. Jones has held posi-
tions in industry that include Industrial Engineering Specialist, Director of Engineering, Consultant
and Project Manager, and Executive Manager of a “Big 5” Accounting firm, and Executive Manager
for United Parcel Service (UPS), Tompkins Associates, Academy Sports and Outdoors, and Arthur
Andersen.
He managed teams and operations as small as 3 people and as large as 500 people. He has managed
projects implementing warehouse management systems (WMS) and enterprise resources planning
(ERP) system, designing and constructing new facilities, and reengineering Fortune 1000 organiza-
tions. Operations managed include strategic systems deployment, teams of large-scale distribution
operation, and human resources at an executive level. He is an expert in the field of supply chain optimi-
zation, distribution logistics, and inventory control. His contribution has laid foundation for our modern
understanding of the Internet of Things (IOT), Blockchain, Radio Frequency Identification (RFID), Auto
UD, and Supply Chain Technologies.
xvii
xviii Author
Industrial Handbooks
1. Tracked, What You Should Know About RFID, Internet of Things, Big Data and Data
Security: The Official RFIDSCM Certification Handbook; Engineering Version by Jones,
E. C., Gray, B., Wijemanne, M and Bolton, J.
2. Tracked, What Everyone Should Know About Invisible Inventory, Monitoring and Tracking,
The Official RFIDSCM Certification Handbook; Engineering Version by Jones, E. C., Gray,
B and Armstrong, H.
3. The Six Sigma Trap, What you should know about Six Sigma that your company is not telling
you: The Official ISCEA CLSSYB Certification Book by Jones, E. C., and Armstrong, H.A.
Part 1
Erick C. Jones
William Shakespeare
1.1 I ntroduction
At the time of writing this book, many people consider we are in the Fourth Industrial Revolution. The World
Economic Forum’s chairman Klaus Schwab is synonymous for addressing this term along with the use of
the terms “second machine age” and “Industry 4.0”. The Fourth Industrial Revolution has been generally
defined as the connection of physical, digital, and biological systems, also termed cyber-physical systems.
This description integrates technologies such as robotics, artificial intelligence, nanotechnology, quantum
computing, and biotechnology. These technologies are often associated with Fourth Industrial Revolution
terms such as internet of things (IoT), industrial IoT, fifth-generation wireless technologies, additive manu-
facturing, and autonomous vehicles. At the time of this writing, there is a great deal of buzz on how com-
panies such as Uber and other ride sharing companies, and Tesla, one of the newest car manufacturing
companies that focuses on driverless vehicles, have inspired great investment into future technologies.
3
4 Supply Chain Engineering and Logistics Handbook
analog electronic and mechanical devices to digital devices and technology. The time is approximated
as starting during the 1980s when computer giants such as Microsoft, Dell, and Microsoft corporations
revolutionized the acceptance and the use of the personal computer, the internet, and other information
and communication technologies. Arguably, the foundational building blocks for the Third Industrial
Revolution took place during the 1940s, following World War II with large-scale computers used to
decode and decipher information at a faster pace and the competitive east versus west race to space.
visibility is of great importance, especially when the providers are several and growing, to track who the
actual provider of the item is. Therefore, the study will include the feasibility of the implementation of a
tool like blockchain in the SC of a cyber-manufacturing cloud-based service.
The last aspect to take into consideration is the actual building of a cyber-manufacturing cloud-based
search engine pilot. There is open access to the Netflix model using Open Source Software Center, so
whoever wants to replicate the model of Netflix can do it. Therefore, the last phase of the project will
be using the market study with six-sigma tools, and the study about the visibility and traceability of the
goods to construct a pilot of the cyber-manufacturing engine, so that the 3D printing can be more acces-
sible to customers, and increase the number of “neighbor manufacturers”.
society at large. Multiple important stakeholders seek to understand how this disruptive technology can
impact SCs. This aligns to a number of corporate and government goals that seek a deep basic funda-
mental engineering understanding of how technologies can disrupt SCs. This book identifies frameworks
and models that impact operations and our ability to understand how society benefits and/or is harmed
by this type of technology. We seek to support the research goals with the following specific objectives.
The objectives are:
1. Identify clear usages of blockchain in the food and drug SC through different stakeholders’
lenses.
2. Investigate SC and logistics engineering optimization models that demonstrate the productive
and disruptive impacts on food and drug SCs of critical food sources and drugs.
3. Evaluate the costs to society, organization, and operations from wasted human capital, optimi-
zation of performance, and reduction of waste from stakeholders’ perspectives.