RFID-enabled just-in-time logistics management system for 'SHIP' - supply Hub in industrial park

Abstract

Supply Hub in Industrial Park (SHIP) is a public depot which provides shared warehouses and fleets for enterprises to reduce their logistics costs through economy of scale. SHIP normally adopts milk-run logistics for material collection and distribution, in order to achieve Just-in-Time (JIT) operations to reduce the suppliers’ and manufacturers’ shop-floor inventories. Instead of once processing a full order, smaller-lot orders from multiple suppliers/manufacturers are mixed and fulfilled in a milk-run round. Milk runs go in parallel with the production processes of all manufacturers, cutting down the shop-floor stocks. However, such lean logistics is subject to failure if production dynamics cannot be timely and accurately captured and handled by the logistics operations. This paper introduces a RFID-based small-lot and high-frequency JIT production logistics management system. Real-time materials outputs and consumptions are captured by RFID-enabled manufacturing execution systems deployed at both suppliers and manufacturers, generating adaptive materials collection and distribution orders respectively at the two sides. Orders are dynamically split into pieces and consolidated into a sequence of shared logistics tasks which are then scheduled based on the real-time status of logistics resources and progresses. Through the developed RFID-enabled operation facilities, the materials collection and distribution around SHIP are collaboratively and accurately executed in a small-lot and high-frequency milk-run mode logistics.