An Economic Order Quantity Stochastic Dynamic Optimization Model in a Logistic 4.0 Environment

Mario Di Nardo, Mariano Clericuzio, Teresa Murino and Chiara Sepe
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Mario Di Nardo: Department of Chemical, Materials and Production Engineering of the University of Naples “Federico II”, 80125 Naples, Italy
Mariano Clericuzio: Department of Chemical, Materials and Production Engineering of the University of Naples “Federico II”, 80125 Naples, Italy
Teresa Murino: Department of Chemical, Materials and Production Engineering of the University of Naples “Federico II”, 80125 Naples, Italy
Chiara Sepe: Department of Chemical, Materials and Production Engineering of the University of Naples “Federico II”, 80125 Naples, Italy

Sustainability, 2020, vol. 12, issue 10, 1-25

Abstract: This paper proposes a stock dynamic sizing optimization under the Logistic 4.0 environment. The safety stock is conceived to fill up the demand variability, providing continuous stock availability. Logistic 4.0 and the smart factory topics are considered. It focuses on vertical integration to implement flexible and reconfigurable smart production systems using the information system integration in order to optimize material flow in a 4.0 full-service approach. The proposed methodology aims to reduce the occurring stock-out events through a link among the wear-out items rate and the downstream logistic demand. The failure rate items trend is obtained through life-cycle state detection by a curve fitting technique. Therefore, the optimal safety stock size is calculated and then validated by an auto-tuning iterative modified algorithm. In this study, the reorder time has been optimized. The case study refers to the material management of a very high-speed train.

Keywords: Full-Service; Logistic 4.0; Smart Factory; Maintenance; safety-stock; EOQ; Simulation-based optimization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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