Case Studies and Contributions to the Resolution of

Logistics System-related Problems

Hayfa Zgaya, Slim Hammadi, in Logistics Engineering and Health, 2016
2.4.2 Problem
These works aim at providing a solution with an innovative approach of organizational,
technological and informational optimization for decision-making problems met in logistics
information systems. The objective is anticipation, in order to prevent any stock rupture in the
Crisis Management Logistics Chain (CMLC).
The studied CMLC is distributed, dynamic and composed of many zones. The choice of the
zones location is a strategic decision of high importance. This decision is made after a crisis.
These zones must conform to certain distance conditions, easy access and political stability in
order to be valid and efficient. The stake is to satisfy each actor’s needs in this chain in order to
provide a better quality of logistics service. However, this chain is completely unpredictable. Its
typology must be able to be modified in real time, in order to adapt to the real situation and to
organize resource flow in the best possible way.
The CMLC is composed of four main zones (Figure 2.8):

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Figure 2.8. CMLC zones

–
SWZ (stock and waiting zone): the area where products must be gathered before
shipping;
–
RGZ (resource gathering zone): the base from which products are delivered to the crisis
zone;
–
IZ (intermediate zone): placed for strategic reasons. After satisfying its resource needs,
the IZ transports the rest of the received resources from the RGZ to the terminal zone;
–
 TZ (terminal zone): the place where the victims of the crisis are waiting.
A supply chain like this will face delivery delays at every moment, erroneous consumption
estimations, cargo losses, spontaneous peak consumptions and other unpredictable events. All
these mishaps may provoke stock ruptures at any moment of the chain, which may result in
dramatic consequences, to the point of human casualties.
These extreme situations are not acceptable in such a chain because of the human stakes, so it is
necessary to create decision-support tools that will enable anticipation of certain disturbances,
and, if necessary, simulation of the best strategies to adopt according to the critical situations.
In the case of humanitarian action, it is necessary to implement operations that will immediately
include the development and maintenance of supply chains providing logistics function support.
The reliability of the logistics chain demands that the chain’s mission be successful in providing
necessary resources to transfer points in the system in order to satisfy the demands of the
emergency mission.
The problem of logistics in the context of humanitarian assistance is to deliver resources without
delay or stock rupture that could disrupt the functioning of a zone. This is called supply policy
and demands knowledge and total mastery of delivery deadlines and resource calculation.
The objectives of a CMLC are to:
–
deploy rescue units, resources and the associated equipment (staff, vehicles, planes, etc.);
–
rebuild infrastructure;
–
supply water, food, clothes, etc.;
–
provide medical support.
In order to achieve these goals, flow management and CMLC optimization are essential. Push
and pull flows are particularly important (section 1.3.4). The principle corresponds to the restock
demand made by the consumer depending on his needs and with regard to the margin fixed by
order deadline. The anticipation of needs and the notion of security stock are necessary to avoid
any breakdown or perturbation. This method ensures – at least in theory – permanent adequacy
of support to real needs.
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Reliability, Availability, and Maintainability
(RAM Analysis)
DrEduardo Calixto, in Gas and Oil Reliability Engineering (Second Edition), 2016
Logistic Resources
Logistics management is the part of the supply chain process that plans, implements, and
controls the efficient, effective flow and storage of goods, services, and related information from
the point of origin to the point of consumption to meet customer requirements. Logistic
resources, such as tanks, pipelines, and ships, have the main objective of making products,
equipment, and raw material flow easier throughout processes to maximize profits.
The logistic resources configuration mostly is applied to systems for its dependence and related
demands and supply of products. In general, in logistic model assessment, equipment reliability,
which highly influences profits, is not considered. In many cases, logistics is also not considered
in RAM analysis. The main discussion in this case study is the importance of including plant
reliability issues and logistic resources, which together have a complex model.
The main logistic resources in a refinery are tanks, which provide oil to distillation plants. Such
tanks reduce system unavailability whenever pumps or other equipment that supply oil to the
tanks shut down. Fig. 4.111 gives a good example of logistics mixed with RBD methodology.

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Figure 4.111. Tank feed distillation plants.

In the first case, both distillation plants are feed for tanks. The U-10 is fed by G-01 and G-404.
Both tanks are available, and only one of them is enough to supply U-10 and G-404, an active
redundancy. There is equipment associated with tanks, such as pipelines and pumps, that also
impacts system availability. The RBD model regards tank failures (internal and external
corrosion) in series with two pumps in parallel, one of them being a passive redundancy.
In the second case, U-11 is fed from G-401/402/405 or G-02, which supplies U-11 and U-10 as
an active redundancy. G-401/402/405 shows a k/n (1/3) configuration RBD, which means at least
one of three must be available to keep U-11 from shutting down.
The tank’s configuration comprises three tanks, G-401/402/405, and at least one of them must be
available to avoid U-11 unavailability.
In this example, tanks cause no high impact in the final result because there are redundant tanks
and such equipment has high availability. On the other hand, the acid water subsystem can
impact system availability because acid gas is in series with many plants (U-10, U-11, U-12, U-
13, and U-21). In case of acid water (U-26) shutdown, a number of plants shut down.
Another good example is U-12; in case of shutdown, the compressor of U-13 and pressure swing
absorption (PSA) (H2 purification) of U-22 will shut down.
If logistic analysis is carried out, those assumptions will probably not be considered, because
logistics focus on product flow and stock. In doing so, in RAM + L such assumptions must be
represented in RBD by condition block, as shown in Fig. 4.112.
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Figure 4.112. Outside U-12 impacts.

For such assumptions we can conclude that it is not possible to model a complex system without
considering logistic and reliability issues. A refinery model example, which is considered a
complex system with 10 plants and tanks, will be given to show the RAM  +  L application.
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Planning Processes and Documents
Paul J. Nardone, in Well Testing Project Management, 2009
Logistics Management Structure
The logistics management structure defines the roles within the resource company organization
that are responsible for coordinating the movement of equipment and personnel in relation to the
well test operation. This information may be presented using an organigram. A typical setup
defines a lead logistics superintendent based at the resource company headquarters or supply
base and a second logistics coordinator based at the well site or, if offshore, on the facility. These
personnel represent the focal points within the resource company organization through which all
material and personnel movements are authorized and coordinated. These roles generally
organize all transportation, and only by special arrangement do contractors arrange transport for
equipment.
Personnel movements are generally managed through the well site logistics coordinator who
arranges flights and accommodation for personnel traveling to and from the well site.
This section of the plan lists the names and contact details of the logistics focal points together
with delivery addresses for all equipment and material deliveries. Location maps for land-based
well sites, particularly road maps detailing appropriate waypoints if the well site is in a remote
location, are important for personnel who have occasion to travel to the well site by road.
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Logistics System
Shokoofeh Asadi, in Logistics Operations and Management, 2011
12.2.2 A LISs’ Functionality Levels
An information system represents an integration of data, supporting equipment, and personnel
and problem-solving methods that are used to assist the logistician in planning and
operations [10].
According to Lambert et al. [11], an LIS is a computer-based information system that
coordinates and manages all logistics management activities. Such an LIS must be capable of
transferring information between the source and demand points [11].
This section reviews three concepts about LIS: functionality levels, information requirements,
and structure. As shown in Figure 12.2, however, LIS has four levels of functionality: transaction
system, management control, tactical planning and control and decision analyses, and strategic
planning [12,13].
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Figure 12.2. Pyramid of LIS functionality levels [12] & [14].

Transaction System
This level includes the most frequent activities in logistics management such as order inquiries
and receiving, order processing, stock status checks, bill-of-lading preparation, and
transportation-rate lookups. Such interactions may be repeated many times each hour, so the
speed of the information flow is highly important. Operative personnel such as order-processing
and transportation-rate clerks are typical users at this level.
Management Control
The emphasis at this level is on performance measurement and reporting. The main users of this
level of the information system are first-line supervisors. For example, warehouse supervisors
need information about space, inventory, and labor to control them, or a truck-fleet manager
must have the necessary information about people, equipment, and spare parts to schedule
deliveries. The interval of generating this information is daily, and the information is presented
in report format.
Tactical Planning and Control and Decision Analyses
Tactical planning and control is an extension of management at the supervisory level. Its interval
is less than 1 year but not as often as every day. Evaluation of inventory-control limits, planning
for suppliers improvement, carrier selection, vehicle routing and scheduling, planning warehouse
layout, and planning for seasonal space and transportation needs are examples of tactical
planning and control problems. The users of this information system level are middle managers
such as warehouse managers and transportation managers. At this level, the planning is a kind of
decision making.
Strategic Planning
The strategic planning is the extension of the decision analysis that is more abstract, less
structured, and more long-term in focus. At the strategic-planning level, the goals, policies, and
objectives of logistics system are established, and the main decisions on the overall logistical
structure and resource distribution are taken. At this level, there is no need for high-speed
information transfer, and the information system is interrogated infrequently. So off-line systems
with manual procedures are enough for this level of planning. Examples of this level of planning
include:
 •
Strategic alliances with other value-chain members
•
Identification and development of company capabilities and opportunities
•
Improvement of services according to customer opinions
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Miscellaneous Topics
Pratima Bajpai, in Biermann's Handbook of Pulp and Paper (Third Edition), 2018
Partnerships
Partnership relations between shippers and carriers are now becoming standard for logistics
management (Rotman and Gibson, 1989; Morris, 1990). Companies such as DuPont, ICI, and
Monsanto are giving this much concern. They believe that if service can be improved and if
safety regulations can be completely carried out, a carrier should be a partner from the
beginning. By reducing their carrier base and by formalizing that relationship with contract
carriers, many shippers achieve high standards of safety and performance.
Chemical shippers are reducing their carrier bases to a few trusted companies; at the same time,
they are attempting to establish more durable relationships and monitor more closely the safety
and service of the selected carriers. For example, Monsanto cut its carrier base from 1500 to 100
within 3 years; FMC's chemical products group slashed its base of bulk carriers from 40 to 12
and packaged carriers from 500 to 60 in 1992. With fewer carriers, the existing carriers obtain
more business and gain incentive to improve service and safety.
One approach used by some companies to ensure safety and service standards by truck carriers
involves the use of contract rather than common carriers. For example, DuPont uses about 95%
of its bulk truckers on a long-term contract basis. As a major step in beginning its comprehensive
safety program, Ethyl Corporation decided that all shipments of hazardous materials would be by
contract carriers (Cooke, 1992) using Ethyl-owned or leased trailer and tank equipment. Dow
Chemical Company contracts most of its truck transportation with motor carriers to ensure that
they adhere to its standards for safe handling. These companies got away from the traditional,
preregulation relationship with carriers and built up close relationships with contract carriers,
sharing information and even objectives; and in some cases, contract carriers could paint their
trucks to match the companies' logos.