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

Author

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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)

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.

Suggested Citation

  • Mario Di Nardo & Mariano Clericuzio & Teresa Murino & Chiara Sepe, 2020. "An Economic Order Quantity Stochastic Dynamic Optimization Model in a Logistic 4.0 Environment," Sustainability, MDPI, vol. 12(10), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:10:p:4075-:d:358886
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    Cited by:

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    2. Mihai Andronie & George Lăzăroiu & Roxana Ștefănescu & Cristian Uță & Irina Dijmărescu, 2021. "Sustainable, Smart, and Sensing Technologies for Cyber-Physical Manufacturing Systems: A Systematic Literature Review," Sustainability, MDPI, vol. 13(10), pages 1-23, May.
    3. Sehrish Atif & Shehzad Ahmed & Muhammad Wasim & Bassam Zeb & Zeeshan Pervez & Lorraine Quinn, 2021. "Towards a Conceptual Development of Industry 4.0, Servitisation, and Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 13(11), pages 1-27, June.
    4. Shahbaz Khan & Rubee Singh & Abid Haleem & Jacinta Dsilva & Sadia Samar Ali, 2022. "Exploration of Critical Success Factors of Logistics 4.0: A DEMATEL Approach," Logistics, MDPI, vol. 6(1), pages 1-14, February.
    5. Mubashir Hayat & Bashir Salah & Misbah Ullah & Iftikhar Hussain & Razaullah Khan, 2020. "Shipment Policy for an Economic Production Quantity Model Considering Imperfection and Transportation Cost," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
    6. Bo-Rui Yan & Qian-Li Dong & Qian Li & Fahim UI Amin & Jia-Ni Wu, 2021. "A Study on the Coupling and Coordination between Logistics Industry and Economy in the Background of High-Quality Development," Sustainability, MDPI, vol. 13(18), pages 1-24, September.

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