Bottom-up approach bad on Internet of Things for order fulfillment
in a collaborative warehousing environment
Paul J.Reaidy a,n,Angappa Gunakaran b,Alain Spalanzani a
a Department of Supply Chain and Information Systems,University of Grenoble Alpes,CNRS,CERAG,38040,Grenoble,France
b Department of Decision and Information Sciences,University of Massachutts,Dartmouth,285Old Westport Road,North Dartmouth,
MA02748-1778,USA
a r t i c l e i n f o
Article history:
Received28April2013
Accepted21February2014
Available online12March2014
Keywords:
Bottom-up approach
Internet of Things
Multi-agent system
RFID
Ambient intelligence
Collaborative warehous
a b s t r a c t
Industrial deployment of the Internet Of Things(IOT)provides development of an ideal platform for
decentralized management of warehous.In this paper,we propo an IOT infrastructure for collaborative
小学升旗仪式warehou order fulfillment bad on RFID,ambient intelligence and multi-agent system.It consists of a
physical devices layer,a middleware ambient platform,a multi-agent system and an enterpri resource
planning.It integrates a bottom-up approach with decision support mechanisms such as lf-organization
and negotiation protocols between agents bad on“com-peration¼competitionþcooperation”concept.
This approach was lected to improve reaction capabilities of decentralized management of warehous
in a dynamic environment.A collaborative warehou example was conducted to demonstrate the
implementation of the propod infrastructure.
&2014Elvier B.V.All rights rerved.
1.Introduction
Collaborative warehou platforms are considered a very pro-
mising supply chain solution in respon to volatile demand and
fluctuating fuel and labor costs.Recent increas in pooling and
collaborative warehousing projects for retailers such as Walmart,
Carrefour,Tesco and Metro confirm this trend(Bäflan,2010).This
concept can be found in consolidation platforms,like classical
cross-docks,urban distribution centers,logistics cities and city
hubs.Moving toward more sustainable business(Ageron et al.,
生命之歌2012)requires re-consideration of logistics strategies by combin-
ing collaborative warehou platforms for warehousing,distribu-
tion and transport between all supply chain stages(GCI and
Capgemini,2008).Collaborative warehou platforms like city
logistics or city hubs are considered as a dynamic and very
complex system.Indeed,fulfillment urban distribution is subject
to unexpected incidents that happen during execution of the
delivery plans like order cancellation,new customer requests,
changes of delivery order and/or destination,mechanical failures,
and so on(Zeimpekis,2011).This riously impacts warehou
planning and requires re-planning the whole or part of order
fulfillment(pick/pack/ship).This also caus performance
inefficiencies(additional handling costs,delay penalty costs,delay
in delivery time).There is a significant lack of rearch related to
city logistics warehou management(Crainic et al.,2009;Morana
et al.,2014).Typical warehou management process are
assured by application software packages such as Enterpri
Resource Planning(ERP),Warehou Management System
(WMS),Transport Management System(TMS)and Advanced
Planning and Scheduling(APS)software(Helo and Szekely,
2005).The tools are not able to satisfactorily respond to the
new challenges and constraints such asflexibility,agility,respon-
siveness and consolidation of warehousing,impod by collabora-
tive warehous and supply chain partners.As a result of this
situation,new approaches have to be introduced,but given the
current complexity,only adapted and consistent technology em
to provide adequate respons.In this paper,we propo a
bottom-up approach for collaborative warehou order fulfilment
bad on a multi-agent system and IOT infrastructure.The concept
of IOT is defined as a“dynamic global network infrastructure with
lf-configuring capabilities bad on standard and interoperable
communication protocols where physical and virtual“things”have
identities,physical attributes,and virtual personalities,u intel-
ligent interfaces,and are amlessly integrated into the informa-
tion network”(Vermesan et al.,2011).IOT infrastructure is bad
on many technologies such as Ambient Intelligence,Internet
Protocol,Communication technologies(WiFi,Bluetooth,ZigBee),
Embedded devices(RFID or wireless nsor networks)and appli-
cations.The rest of the paper is organized as follows.In Section2,
Contents lists available at ScienceDirect
journal homepage:/locate/ijpe
Int.J.Production Economics
dx.doi/10.1016/j.ijpe.2014.02.017
0925-5273/&2014Elvier B.V.All rights梦见被蛇咬手
rerved.
n Corresponding author.Tel.:þ33438374735;fax:þ33476037939.
E-mail aidy@upmf-grenoble.fr(P.J.Reaidy),
agunakaran@umassd.edu(A.Gunakaran),
alain.spalanzani@upmf-grenoble.fr(A.Spalanzani).
Int.J.Production Economics159(2015)29–40
we detail challenges and trends in future supply chain manage-ment in relation with our rearch.Section 3reviews the bottom-up approach and shows why and how it can be adopted for collaborative warehou management systems.This is the theore-tical basis upon which we have designed and developed our monitoring system.In Section 4,a city hub platform is prented.Section 5is devoted to describing system modeling approaches and associated mechanisms.It details negotiation methodology between agents,which is propod to solve the problem of resource allocation.In Section 6,negotiation protocol bad on “comp-eration ”scenario is detailed.Section 7prents an order ful fillment problem example with sample data simulation and managerial implicat
ions.Finally,Section 8is a summary of the paper,and discussion of potential applications by practitioners.
2.Main challenges to future supply chain management “Economic globalization and growing supply chain interdepen-dence have introduced a heightened level of volatility and vulner-ability that is unlikely to subside ”(IBM,2009).Uncertainty has become the norm.This new environment requires responsive and flexible supply chains with greater integration (Gunakaran and Ngai,2004),agility (Lee,2004)and consolidation (Ülkü,2012).The details of the new environmental factors and challenges are discusd below.2.1.Integration
When we talk about supply chain interconnection,it does not simply mean interconnection between one's own production,warehous and shipments (Fig.1).It means that there is intra/inter firm connection between partners,process,products and Information Technology (IT)systems along the entire Supply Chain (SC)(Frohlich and Westbrook,2001).This interconnection enables improved visibility,traceability,interoperability and collaborative decision making between partners.This implies using IOT infra-structure (Atzori et al.,2010)bad on supply chain technologies such as deployment of Radio Frequency Identi fication (RFID)technology,ambient intelligence and sharing real time informa-tion.The role of the technologies in supply chain integration is discusd below.
SC Technologies.SC becomes more instrumented using GPS and
RFID infrastructure such as tags,readers,nsors and RFID
software.The technologies can improve supply chain perfor-mance by increasing visibility of performance,inventory avail-ability,improving coordination,and reducing labor costs and inventory levels (Ngai et al.,2008;Sarac et al.,2010;Shridhar and Deshpande,2010;Lim et al.,2013).
Ambient intelligence.This technology provides intelligent and personalized application integration systems and rvices in the surrounding environment to support activities and actor's interactions (Riva,2005).Ambient intelligence has been applied in trade,logistics,industry,transport and healthcare,as well as in personal identi fication (Friedewald and Raabe,2011).Combining RFID technology with an ambient intelli-gence platform improves supply chain traceability and trans-parency (Olaru and Gratie,2011).
Sharing real time information.Ambient platform deployment allows real time information monitoring that improves supply chain visibility.Sharing real time information between partners at this level is esntial for greater supply chain responsiveness (Li and Lin,2006;Gunakaran et al.,2008).This can be done via joint scorecards and business plans.Indeed,visibility does not simply lead to better p
lanning,it is also fundamental to real time execution (IBM,2009).
2.2.Agility
SCM must also be agile (Lee,2004).Integration improves supply chain ef ficiency and reduces uncertainty,but does not eliminate risk (Prater et al.,2001).To cope with risk and market uncertainty,supply chains need to be flexible,adaptable and reactive,and respond effectively to the question “how can we function ”in general terms,not “how will we function ”in speci fic terms.Indeed,the concept of agility has its origin in flexible manufacturing systems that were then extended to supply chain management (Christopher,2000).This concept has often been implemented in dynamic,re-con figurable and lf-organized approaches such as the bottom-up principle using autonomous and proactive technology such a multi-agent system (Lüder et al.,2004;Bratukhin and Treytl,2006;Wurman et al.,2008).2.3.Consolidation
Warehou consolidation in supply chain is a very attractive solution due to its pro fitability and positive ecological impact
I n t r a -F i r m
Fig.1.Integration of warehou operations in supply chain management.
P.J.Reaidy et al./Int.J.Production Economics 159(2015)29–40
30
(Ülkü,2012).Reduced warehousing,transport,and handling costs are tangible benefits of consolidatio
n,and delivery frequency to customers increas in addition.Reduced traffic congestion,low-ered energy consumption and CO2emissions are some of the direct ecological advantages resulting from this factor(De Brito et al.,2008;GCI and Capgemini,2008).To succeed,the warehou consolidation concept requires high levels of collaboration,trust and commitment between manufacturers,retailers and logistics rvice providers.
In this paper,we focus on the development of new approaches devoted to monitoring of complex collaborative warehou con-cepts that are faced with the challenges we enumerated above.In the next ction,we review the bottom-up approach and show how it can be adopted by a collaborative warehou system.
3.Bottom-up approach bad on IOT for warehou management
Recent advances in ambient intelligence and RFID technology have enabled development of a new approach in the logistics and production domain called“Bottom-up”(Melski et al.,2008).It is bad on information recovered from products and resources at the bottom of the chain which is then transmitted to the upper levels and impacts decision making across all supply chain areas. This enhances traceability,visibility and transparency in management of supply chain information(Olaru a
nd Gratie, 2011;Sarac et al.,2010).The bottom-up approach has also been propod in manufacturing control systems using both holonic (Fletcher et al.,2003)and hierarchical structures(Bratukhin and Treytl,2006,Reaidy et al.,2006).We prent in Fig.2,below,a comparison between the conventional,static top-down approach (at left)and a dynamic bottom-up approach(at right).
The conventional approach is bad on static functions.It consists of analyzing the complete system to detail its main tasks using the decomposition principle.Its goal is to simplify the process and automate it with the help of computers,and to execute the functions in parallel(if possible)to improve performance.Often,a detailed schedule is generated over a long time horizon.Also,planning,scheduling and execution are
carried out quentially.Function linking is organized“top-down”(Reaidy et al.,2003).
The dynamic approach or bottom-up modeling approach is autonomous and considers multi-agent interactions.It is com-pod of three interrelated elements:agents,interactions and environment(Nan,2011).Global behaviors and performances satisfactory to this approach are realized through local coordi-nation and control design for multi-agent systems(Karimadini and Lin20
11).This concept provides satisfactory,adaptable and robust solutions in dynamic and complex environments,due to increasing lf-organization resulting from interactions between interconnected networks(Adam et al.,2011).
The dynamic bottom-up approach is totally different from the conventional approach and thus requires a different schema.An example of this is the system of auctions and negotiations between agents that indirectly(and organically)generates real-time scheduling,thus rendering the unneeded position of sche-duler.(This is in contrast to intelligence generated by a conven-tional approach that is quite localized at the process level.)This extended,bottom-up intelligence can be distributed at product, environment and process levels or distributed at process and logistic/interaction levels(Reaidy et al.,2003).
The Bottom-up approach us an IOT infrastructure associating RFID with ambient intelligence and a multi-agent system provid-ing lf-organization behavior and interconnection networks between all warehou pallets,resources and infor-mation technology infrastructure).The Kiva System is a multi-agent warehousing example bad on the Bottom-up approach.It is a lf-adaptive and lf-organized system.Agents communicate with each other,they create a lf-organized system tofind the optimal local solution to their resource allocation problems,like order fulfillment,replenishm
ent and planning path problems (Wurman et al.,2008).Indeed,multi-agent systems are considered as the most suitable technology for achieving lf-organization behavior in dynamic and complex systems(Barbati et al.,2012). Furthermore,RFID technology associated with ambient intelli-gence provides the main characteristics for network interconnec-tion in a decentralized management approach(Nagy et al.,2009) Hereafter,we review the concept of collaborative warehou and we explain how the bottom-up approach can be implemented in Collaborative Warehou Management(CWM).
3.1.Collaborative warehou
“Collaborative warehou”can be considered as a logistic shared platform where veral producers and distribution com-panies share a physical space and logistics information to improve the global performance of the overall distribution process(GCI and Capgemini,2008).It lets manufacturers consolidate their warehou operations and transport from production to the retailer transfer point.This concept can also be found in con-solidation platforms,like classical cross-docks,urban distribution centers,logistics cities and city hubs.In logistics,collaboration is a popular practice strategy that remains,however,less explored in the literature(Morana et al.,2014).Tuzkaya andÖnüt(2009), develop a top down approach bad on linear programs and genetic algorithms to
minimize holding inventory and penalty costs for suppliers,warehou and manufacturers.Yu and Egbelun (2008)propo a top down approach using a priority-rule bad heuristic tofind the best truck docking or scheduling quence for both inbound and outbound trucks with a temporary storage buffer in a distribution center.Crainic et al.(2012)propo a framework bad on a top-down approach,for integrated urban freight management bad on location-allocation formulation for the problem of locating satellite facilities in a multi-echelon system.
Static top-down approach Dynamic bottom-up approach木兰说
Fig.2.Basic approaches involved in production system.Derived from Reaidy et al.
(2003).
P.J.Reaidy et al./Int.J.Production Economics159(2015)29–4031
Collaborative warehou platforms are considered as a dynamic and very complex system.Flexibility,agility,responsiveness and con-solidation of warehousing are the new challenges a
nd constraints impod by collaborative warehous and supply chain partners.As a result of this situation,new approaches have to be introduced,but given the current complexity,only adapted and consistent technol-ogy em to provide adequate respons.
3.2.IOT infrastructure for CWM
IOT infrastructure associates RFID technology with ambient intelligence platform and multi-agent systems.RFID technology can play an important role in IOT infrastructure as a means of communication and a data provider to supply chain actors(Lim et al.,2013).Ambient intelligence platforms allow the IOT to connect different physical world objects(pallets,forklifts,trucks) to the IT infrastructure and thus be monitored and potentially controlled.Spontaneous configuration,tolerating partial failures and management of complex systems are the main contributions of multi-agent systems for IOT infrastructure(Katasonov et al., 2008;Nagy et al.,2009).Recently,IOT infrastructure has been propod in literature to improve the competitiveness and respon-siveness of warehou management.Jiang and Su(2013)propo a comprehensive management platform of modern tobacco logistics bad on the Internet of things technology.They show that IOT technologies are able to improve the level of management,reduce operating costs and enhance the quality of rvice for modern tobacco logistics.Yang(2012)combines the warehou manage-ment system with the Int
ernet of Things technologies,such as RFID,GPS,and nsor technology,to construct an intelligent logistics warehou management system bad on the Internet of Things.Ding(2013)prents a Smart Warehou Management System bad on the IOT.Simplifying the process of inventory of goods and enhancing the level of warehou automation manage-ment are the advantage of this intelligent warehou management system.In the logistics domain,ambient intelligence has been associated with RFID technology to enhance the warehou busi-ness process,warehou accident handling and to perform trans-parent interactions with products handled throughout the supply chain(Kim et al.,2008;Bajic,2009;Ngai et al.,2012).Kim and Sohn(2009)confirm that logistics processing using RFID systems applicable to ubiquitous-city can improve customer rvice and reduce logistics processing costs.Furthermore,combining the technologies provides automated monitoring and control of indus-trial resources and process.Machines,infrastructure elements, materials,and products can get connected to the information technology infrastructure,and thus be monitored and potentially controlled(Nagy et al.,2009).This provides the basic intercon-nected network infrastructure for agent warehousing manage-ment and control such as physical object auto identification and auto configuration,object-to-object interaction and object-to-environment interaction(Bajic,2009).Here,physical objects correspond to products,resources,process and urs.This technological advancement opens new horizons to implement agent bad decentralized
control solutions for industrial applica-tions.In multi-agent warehousing systems,agents may reprent order fulfillment,products,pallets,and resources such as forklifts, packing machines and trucks.Agents perform individual tasks via interaction with other agents to fulfill warehousing functions such as receiving,storing,picking,local planning and control,task assignment allocation,or even distribution(Kim et al.,2002; Hiel et al.,2011).Therefore,industrial deployment of RFID infra-structure ultimately reduces investment costs and encourages firms to u the bottom-up approach in warehou management. In our opinion,collaborative warehou platforms reprent a real application for agent-bad management in industry.In fact,collaborative warehou platforms like city logistics or city hubs promote implementation of infrastructure(GCI and Capgemini, 2008).This platform is considered as a dynamic and very complex system(Crainic et al.,2009)and reprents an ideal context for agent applications(Leitao and Vrba,2011;Barbati et al.,2012;Ye et al.,2012).Finally,IOT infrastructure provides development of an ideal platform to implement the bottom-up approach for colla-borative warehou management.This perspective allows accel-erating adoption of the concepts and technologies in industry, which encourages rearchers to refine practical solutions for the industry by developing lf-organizational mechanisms to improve robustness of the platform.In the next ction,fulfill-ment,we describe the future supply chain design developed b y Capgemini consulting including the city hub model.Then,we will propo a city hub warehou architecture bad on an IOT infrastructure for city hub warehou management.
4.City hub model
The City hub model corresponds to a collaborative warehou platform for urban distribution areas(GCI and Capgemini,2008).It is like a shared gate for cities that ensures the smooth shipment of goods arriving from various provider sources and having various client destinations(Trentini et al.,2010).This implies consolidation of different delivery streams(different products bad on different online ordering facilities,all for the same shopper)via city hubs.Thus, shipments can be consolidated in city hubs and be brought into the city with alternative modes of transportation like electric vehicles.
The city hub concept is considered very promising as a forward looking SC solution for reducing traffic congestion in urban areas, energy consumption,CO2emissions and the permanent ri in transportation costs(Taniguchi and Thompson,2002).Moving toward more sustainable business requires that we re-consider logistics strategies by combining collaborative warehou platforms for ware-housing,distribution and transport between all supply chain stages. Below are certain SC model characteristics that include the concept of a city hub design for order deliveries in urban and non-urban areas developed by Capgemini consulting(GCI and Capgemini,2008).It is bad on multi-partner information sharing among consumers,suppliers,manufacturers,logistics rvice providers and retailers.
词拼音
After production the products are shipped to collaborative warehous in which multiple manufacturers store their products.
Mutualid transport from the collaborative warehou deli-
vers to city hubs and to regional consolidation centers.
Non-urban areas will have regional consolidation centers from
保证在
which products will be shipped forfinal distribution.
Final distribution to stores,pick-up points and homes in urban and non-urban areas will take place via consolidated deliveries using the most efficient asts.
Store orders can be asmbled in the collaborative warehou and consolidated at the city hub.This means that retailer distribution centers can be bypasd.
In Fig.3,there are eight manufacturers arranged into two groups of four,each running a collaborative warehou.From the collaborative warehous,store-picked orders are shipped to either a city hub or a regional consolidation center.
Here,a regional consolidation center is ud for non-urban areas.It has a similar function as the city hubs,consolidating the store orders from various collaborative warehous into dedicated store replenishment routes.At the same time,the consolidation centers are needed to merge the long-distance streams with the
P.J.Reaidy et al./Int.J.Production Economics159(2015)29–40 32
local product streams to create ef ficient replenishment for the stores.
Now we will describe the city hub application architecture ud to conduct our validation.It is bad on an IOT infrastructure associating RFID with ambient intelligence and MAS.4.1.City hub application architecture
Platforms associating MAS with RFID and ambient intelligence have been propod in veral rearch works (Wang et al.,2009;Bade,2009;Olaru and Gratie,2011).It consists of many layers such as application layer,network layer and physical devices layer.The city hub application architecture that we propo can be discusd in four different layers,as shown in Fig.4.The physical devices layer consists of all the physical,embedded devices (i.e.pallets,forklifts,packing machines,trucks)that are equipped with RFID readers and nsors.
The physical objects store information on both RFID tags and on remote databas.The device discovery protocol is lected to implement the UPnP (Universal Plug and Play)middleware layer that then interfaces with the devices.The Multi-Agent System (MAS)layer platform Jade compris pallet agents,resource agents,control agents,and interface agents.Here,the MAS plat-form is considered as a portal platform becau agents are not embedded on the products,but run on “normal ”desktop systems or rvers (Meyer et al.,2009).The top-most application layer refers to all possible ur interface applications and ERP.The MAS layer exchanges information with the ERP and Middleware ambi-ent architecture using an EAI middleware and XML interfaces.This platform is currently under development in the Regional Academic Rearch Community Project “Innovations,Mobility,Territories and Urban Dynamism ”(ARC7,2012).The main object of this project is to implement a bottom-up approach for warehou order ful fillment in an ambient and collaborative environment.4.2.City hub platform
In this ction,we consider that the city hub warehou is compod of pallets,forklifts,an inventory zone and auto packing
荔蝽machines equipped with RFID technology (Fig.5).Pallets come directly from collaborative warehous or from producers.Store orders are asmbled in the collaborative warehou and con-
solidated at the city hub.Here,order ful fillment concerns only the pick/pack/ship process.It is generated by an ERP system.Warehou us an UPnP ambient environment middleware for exchanging information between devices,ERP,and the multi-agent system.Agents will reprent order ful fillment,pallets and the different resource devices of the system such as forklifts,
改名字流程Urban Stores
Non-Urban Stores
Fig.3.Future SC design (GCI and Capgemini,2008).
Fig.4.City hub applications architecture.
P.J.Reaidy et al./Int.J.Production Economics 159(2015)29–4033
