Head: István Heckl, PhD, associate professor (e-mail: Heckl.Istvan@mik.uni-pannon.hu)
Members: László Halász, András Éles, Balázs Csontos
The research and development connecting to the solutions of Supply Chain Management started at the faculty in 2004. It is based on the internationally recognized P-graph and S-graph methodology which are used for the design and operation of industrial and business processes. The first major result was the VBKTO project which aimed at the online optimization of asset transportation taking into account security concerns. The project was implemented between 2004 and 2007 involving the faculty, the Ministry of Defense, and the University of Szeged. From that time numerous R&D cooperation was born between the leadership of the faculty and Hungarian or foreign enterprises to research and implement decision support in logistics. The most prominent is the strategic cooperation between the faculty and the MOL. One of the results of this cooperation is the joint international training called Supply chain optimization in petroleum industry.
The efficiency of the logistic systems can be increased with the use of advanced IT technologies, such as, design, optimization, simulation, and tracking systems. The best way to increase efficiency is the application of some optimization techniques. The application of simulation and tracking systems ensures that the initial plans can be verified, and the advantage gained at optimization is not wasted during the practical implementation.
Various optimization methods and solutions are developed for vehicle routing problem, crew and vehicle assignment problem, resource allocation problem. Efficiency analysis was carried out for new manufacturing technologies and for advanced logistic identifying systems. Simulation and tracking systems were developed based on unique requirements.
R+D activities
· development of simulation framework for the validation of medium-term plans
· new methodology for the design, optimization, and decision support for logistic systems
· development of advanced solution for the tracking and control of logistic assets
Application areas
· optimization of supply chain
· optimization of manufacturing process
· economic analysis of new technologies
· optimization of the vehicle routing problem
· vehicle and crew assignment
· development of tracking and simulation systems
Industrial partners
· IBM Hungary
· Telenor Hungary
· MOL Plc.
Major projects
1.1. MOL: Development of ProdSim 1-2
The SCM branch of the MOL gave us the task of developing a simulation and optimization system for their product pipelines and the storage tanks. The system was later named as ProdSim. The primary aims of ProdSim is to implement user interface where data and plans can be inputted, help to coordinate the various transport plans, provides charts and tables to visualize, analyze, and optimize the plans. This is a unique system tailored for MOL.
The ProdSim was officially introduced in January 2011 and it is still used. It is deemed as a clear success because the length of plans could be increased from 7 days to 30 days. The introduction increased the flexibility of MOL, it increased the maximum and decreased the minimum manageable inventory stock by accurately predicting the risks of a given plan.
During operation new requirements emerged. For example, the database system was switched to MS SQL, the permission system was upgraded to match the permission usage of other MOL systems.
1.2. Development of the Discrete Demand Management (DDM) system
The primary aim of the simulation and optimization ProdSim system is the validation of pipeline plan and blending plan. Moreover, the ProdSim standardizes the data handling of the product transports which effects several branches within the MOL. Consequently, a clear, easy to use platform has been born.
Recognizing these results, the MOL formulated similar requirements for the support of the trading processes. The DDM is a novel platform for the product traders with an advanced user interface, where data synchronization, data merge, and activity tracking can be implanted. The most important function of DDM is the real time acknowledgment system, which clearly shows if a sale demand can be produced and transported to the place of sale, and if not, what are the alternatives. The system was introduced in 2012.
1.3. Bakony power plant: Scheduling of the transportation of renewables
There was a quarrel between the city of Ajka and the power plant because the trucks transporting the renewables hindered considerably the regular traffic of the city. The city was unable to solve the problem, it only diverted the trucks with new traffic signs. The trucks kept coming in unregularly, there was long queue at unloading, at other times there were not enough renewable.
The power plant did not have solution for this problem, so it asked the faculty to propose, compare, and analyze different alternatives. There were several discussions between the faculty and the power plant during which the problem and the power plant itself was introduced. After the evaluation of the proposed solution, a scheduling system was selected. The system was implemented by the faculty which was tested by the power plant. The project was closed in 2009 and following some modification it is still used.
1.4. Pannon Newspapers:
Development of mathematical model and solution method for the optimization of single day, multiple endpoint transportation problem
The Pannon Newspapers Company delivers five types of daily newspapers, numerous marketing leaflet, and several weekly newspapers in four counties. The transportation routes were created manually based on past experience.
The production occurs at a single location, the Veszprém print. Usually, it is carried out between 10 pm and 2 am at the night. The Veszprém Diary is printed at last because it is to be transported for the shortest distance. The transportation of the daily newspaper is the most important, because according to the business policy of the company, the daily newspaper should be at the local distributors at 4 am, and should be delivered to the customers until 6 am. The leaflets are usually transported together with the newspapers, but the exact time of the delivery is not critical. Penalty is due only after 2 or 3 day delay. It means if the delivery is not possible on the first day there is still possibility to make it up.
The delivery are performed by contracted transporters but the management of the transport is the responsibility of the Pannon Newspapers. It makes possible that the transport routes and the full delivery system can be recreated flexibly. For example, new routes can be created or existing routes can be modified. To do this, the new route must be traveled to check it in real life, because the unloading points might be problematic. Consequently, although the routes can be modified, such a system is not practical which change the routes dynamically day by day.
The delivery happens in two levels. The newspapers are delivered directly to the nearby settlements from Veszprém. In case of the faraway settlements, a middle point is used for transshipment. A larger truck is used to transport the newspapers to the transshipment point where the load is distributed among several smaller trucks. The transshipment points are usually areas with roof, for example a gasoline station.
The aim of the project was to develop a mathematical model and a solver for such a Vehicle routing problem which involves a single source and hundreds of endpoints. The solution of the problem with standard methods is not possible because of the size of the problem. Consequently, a tailored solution method had to be developed. The efficacy of the mathematical model and the solution method was verified with the solution of a reference problem. The project has ended in April 2008.
1.5. Bridge Building plc: Development of mathematical model for the optimal assignment of a construction company
An important feature of the construction projects is that numerous, highly qualified employees have to work constantly, far from his or her hometown. It has significant sociological and financial consequences. Another important feature of these projects is that a number of subcontractor work together. The work of these subcontractor has to be coordinated not only firm level but on the employee level as well. It is usually difficult because the employees belong to different subcontractors but work on the same project. A general schedule is created in advance which determines when and what type experts are needed at the construction and the preparing sites, and it also says how long the experts are needed at a specific site. The modeling problem is the creation of the assignment plan based on the general schedule. In other words, the model has to determine exactly which expert is needed where and when. Moreover, alternative assignment plans have to be constructed as well. Decision can be made among them based on cost and additional considerations. The model is capable to synthetize the normal assignment plan but it is also capable to determine an “extraordinary” assignment plan if some unforeseen accident happen. The model has been extended to handle several construction site parallel. The project is ended in March 2012.
1.6. MOL: ProdSim 3
The name ProdSim comes from Product Simulation. MOL SCM uses it from 2011. It is deemed as a success because the plan horizon could be extended from 3-4 days up to 30 days. The use of ProdSim increased the flexibility, made it possible to handle extreme low and extreme high inventory level by predicting accurately the effects and risks of a schedule.
MOL recognized that the usability of ProdSim can be further increased if certain tasks are automated, thus, the employees can concentrate on other areas. Several new interfaces were implemented and a report model was developed as well in 2013.
1.7. MOL: ProdSim 2014
The MOL formulated new requirements for ProdSim which was originally developed by our faculty. For example, the pipe designer had to be extended, several interfaces had to be modified to enhance the integration between ProdSim and other MOL IT applications. Improvements were made on the plan designer and the transportation on rail and barge were also taken into account.
1.8. MOL: MOST 2017 - ILB
The ProdSim and the DDM application were integrated and termed as MOST. Moreover, the inline blending functionality is implemented with high priority. As a result, MOL expects to decrease the stock level and consequently reduce the cost. Previously the bio-component (FAME) was blended into the diesel and the blend was stored in a dedicated tank. Each country has a unique regulation for the bio-component so numerous tanks was required and the stock level was high. MOL purchased such blending heads which are capable to perform the blending just before transporting the diesel. The MOST platform has to be developed further to enable the simulation of the blending heads.
1.9. IBM: Development of cloud based IT services
IBM is a strong supporter of the sustainable development. As a result, the Smarter Planet program was reintroduced. It focuses on numerous specific areas, and it aims to develop novel IT approaches. The project with our faculty aims at five areas:
· Smart cities
· Smart grid, smart metering
· Mobil workforce management
· Optimization of business processes and business analytics
· Cloud solutions
During the project new results were born on several areas which are utilized in a larger integrated system. For example, the ORENBI is a general process and mobile workforce management system and an electric load simulation system was implemented connected to the Smart Grids.
The ORENBI is a cloud based, modular process management system, which implements the typical functions of a process management system but it gives greater freedom at the modeling of the processes. The design of the processes and the corresponding documents are carried out graphically. After providing the necessary parameters the process can be run immediately. The system interpret the process, it can determine the next step or steps, makes decisions automatically, and it is able to select the resources for the subsequent step. By extending the general process models the solution of the mobile workforce management problem can be implemented. In these problems tasks can appear at various locations, for example, a mobile team can be part of the process. Due to the multiple locations and the time requirement of the travel more advanced scheduling algorithms had to be developed. The ORENBI integrated the results of several areas which resulted in additional improvement. The project concluded in 2017.
1.10. HR-IT
An electronic project assignment system has been developed as an internal university project. This solution substituted the old paper based system. As a result the process is more transparent, partially automated, the responsibilities are clearer. The aim is to transform more and more process into the new system.