Archive for category Ports, Logistics and Supply Chain

Container Terminal Integrated Planning: Balancing Schedule and Cost

hamburg-2103261_640Containerized sea-freight transportation has grown significantly these recent year, brought an increasing interest on the optimization on container terminal operations. Recent research trends nowadays leads to the integration of container terminal planning. As the container terminal operations itself consists of some intertwined systems, so the integration between them becomes critical.

Operational efficiency and productivity become the key issues in the development of container terminal operations management. As the service provider, container terminals are expected to satisfy the shipping lines schedule related to the vessel arrival and departure time. In other hand, container terminals are also in the urge of maintaining their operational cost in order to compete with other terminal. Somehow at the container terminal, efficiency and productivity will depend a lot on the operational planning held by the terminal manager.

In the daily practice, terminal managers determine the berthing position of each vessel before they arrived at the terminal, due to the information given by the shipping line and also plotted the handling time for the vessel’s operation. This usually called as tactical berth allocation problem. Then, they also determine the certain position for each container in the yard storage area according to some rules adapted in the terminal, this case called tactical yard allocation problem. In order to attain a good state of container terminal operational planning at tactical level, terminal operators are faced with the challenge to both minimize the total violation time of vessel’s arrival and departure time, and minimize the yard transportation distance in a balanced way.

As one of the Indonesian highest-throughput container terminal, PT. Port of Tanjung Priok is experiencing the throughput escalation, particularly from 2015 to 2016, and confront those tactical problems on berth and yard allocation on their daily practice. Unfortunately, they still encounter the violation of vessel arrival and departure time, which undermining the shipping line schedule. This might happening as the result from the possibility of poor operational planning at tactical level and the lack of integration between berth and yard allocation planning.

To cope with this issue, we are trying to get an optimal model for integrated operational planning for ocean going terminal at PT. Port of Tanjung Priok, by adopting a mixed-integer programming model proposed by (Liu et al. 2016). We are developing the model with the consideration of the actual condition on the terminal as the parameter in order to generate a reliable output. The actual information provided by the terminal manager that counts into the consideration of the model are:

  1. Vessel arrival order, vessel length, and number of containers loaded into and discharged from the vessel;
  2. Total length and characteristic of terminal’s quay;
  3. Number of equipment (quay cranes) available in the terminal;
  4. Technical constraints determined by the terminal manager;
  5. Layout and capacity of terminal yard storage area.

Some integer variables are set as the major output, assisted with some other minor variables as the supporting of integration process. As well as the parameter, some constraints also generated based on the actual condition of the terminal. The model then solved with a bi-objective optimization method called ɛ-constraint method, thus we set two objective function which are i) minimize the total violation of actual and scheduled vessel arrival & departure time; and ii) minimize the total yard transportation distance representing the terminal’s operational cost.

In the daily practice of PT. Port of Tanjung Priok within the planning horizon of one week, noted that the current condition conform the small class according to generation by (Liu et al. 2016). Since the class is small-scale, it is possible to get an exact global optimum result from the model. Model will generate the optimal number of the two objective functions and the solution set of major variables generated by the model, which are:

  • the berthing position of each vessel in the planning horizon along the quayside of terminal;
  • number and scenario of equipment will be used at each vessel operation;
  • start and end time of vessel operation, representing the arrival and departure time;
  • storage position of each container in the yard area.

Then as the final result, we transformed the output into the berth and yard allocation map separately, for the ease of the practical use of the terminal. As the model solved with a bi-objective optimization method, output of the model includes the Pareto Frontier that represents the relation between the two objectives function. It resulted that total violation time has a contrast relation with the total yard transportation distance.

Since the model is considering the actual condition of the terminal, the result has high possibility to be applied in the actual practice at PT. Port of Tanjung Priok. Along with that, the Pareto Frontier could be used as decision support tool to determine the set of scenario that suit the terminal’s particular condition, related to the time violation and yard transportation distance. But, regarding to some sort of limitations within the development of the model, this projects is still needs further improvements in order to get more reliable result.

This research is conducted by Rizka and Komarudin

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Port Development in DKI Jakarta: Benefit or Diseconomies?

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By August 2016, The New Priok Port Project or North Kalibaru Terminal began its first phase operation. This project will make DKI Jakarta to have the most adequate port in Indonesia by 2030 (the time of New Priok Project expected to finish). On the other hand, this project also aligns with the vision of the current President of Indonesia, Mr. Joko Widodo, to make Indonesia as the world maritime axis. As a response for this port development and its emerging role for the country, the central government issued the regulation number 3 of 2016 on acceleration of national strategic projects. In this regulation, North Kalibaru Terminal included in national strategic project. This port development project also responds to the fact that there has been no new terminal development in Jakarta in more than 20 years which hopefully. Also, with this terminal hopefully that the current domestic terminal in Tanjung Priok Port can return to its main function as it was used for international cargo as well. Read the rest of this entry »

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This is What You Should Do When You Have No Doraemon’s Magical-Anywhere-Door

There are times when we wish Doraemon’s magical-anywhere-door really does exist. If so, we can reach our destination without having to travel miles in a long time. But, since Doraemon does not exist, fortunately there is something we can do to at least save the mileage and time we sacrificed to travel from one to another places. Especially in case of post men or delivery couriers who have to visit a lot of destinations in such limited amount of time and capability.

Recently, a research assistant from Systems Engineering, Modeling, and Simulation Laboratory from Industrial Engineering major, Universitas Indonesia is conducting a research about Vehicle Routing Problem with Time Windows to optimize distribution route and schedule. It was first inspired by Indonesia’s current logistic condition which is still not optimal. It is proven by the decreasing index of Indonesia’s logistic performance during the past five years. One of the reason is the high Indonesia’s logistic cost which can be considered as the highest logistic cost in the world. And the one that contributes almost half of the logistic cost is transportation cost.

On the other side, customer needs are rising annually. Moreover, the growing online shopping market create an increasing demand of same-day delivery service. Based on McKinsey survey, online retailers as the main originator of B2C shipments, have a large interest to reduce delivery time in order to foster the products sale. Therefore, we need a better planning of distribution route and schedule, especially for delivery service providers and courier companies.

The purpose of research conducted at SEMS Laboratory about Vehicle Routing Problem with Time Windows (VRPTW) is to find the most optimum distribution route with lowest total distance yet still manage to fulfill all demand and considering the constraints of vehicle capacity and customers’ time windows.

Since VRPTW belongs to NP-hard optimization problems, our researcher used heuristic method which is translated to Netbeans 8.1 software in C++ programming language. They also use local search to perform simple iterations to produce fairly accurate solutions. Local search methods which are used in this study are exchange, two-opt, and insert. They can be applied to customers in the same route (intra-route) and customers in different routes (inter-route). Basically, these methods perform some iterations of moves that determine the most optimum combination and sequence of customers to visit. This will be finalized by using Lin Kernighan Helsgaun algorithm. The iteration will stop once it can not generate a better solution.

Fig 1. Illustration of 2-opt intra-route move

Fig 1. Illustration of 2-opt intra-route move

The resulting improvements will ultimately result in reduced transportation costs. Thus, vehicle routing problem with time windows can be a solution for urban logistic problems. So, when you do not have any Doraemon’s magical door, make yourself sure that at least you have a well-planned distribution route and schedule!

This Research is Conducted by Vincencia Sydneyta and Dr. Komarudin

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Learning Strategic Sourcing Management through Serious simulation Game

Why bother with uninteresting hours of classroom session, when you can play a game and learn more?

high-bay-408222_960_720Despite the importance of its functionality, research shows that many of the world procurement and purchasing specialist around the world are still having trouble in developing and implementing an effective strategy towards sourcing, according to KMPG International report (2012). Some still perceive the approach in sourcing is to find the lowest cost and ignores the true potential of sourcing.

In the globalization era, the challenge in sourcing has been more complex than before and will continue to rise. Sourcing researcher, Kate Vitasek and alongside many others state that you should view sourcing as a business model with the goal to maximize value. Sourcing is not just merely obtaining products or services at the lowest price, but to obtain them at the right price. By choosing the right business model for your sourcing situation, you can  harness the true potential value sourcing.

Unfortunately, the concept of sourcing model is not yet widely recognized. Although many firms may have or are implementing some of them, the basic knowledge of the sourcing business model development process is still a problem to many sourcing professionals. In order to help the professionals to gain a better understanding of sourcing business model development process, a serious simulation game is presented as a solution.

Serious simulation game has been used in many pedagogical purposes throughout different fields such as supply chain management, business simulation, medical and military. The gaming environment creates an immersive learning medium and therefore is able to improve the learning process of its participants.

By developing a serious simulation game in form of a board game, participants are able to learn the key concepts of sourcing business models and the different impact of each models. Before the game participants can have the chance to develop and choose the best sourcing business model for the situation. The benefit of playing a game is that  participants can know whether they have chosen the right sourcing model.

The game presented in this research proves another example of a pedagogical use of a serious simulation game. Serious simulation game is seen as a suitable learning medium especially for the millennials. The immersive value offered by gaming help learner to stay focus. When learner are involved in the system, there is a better chance that they can understand and remember better. This is also an example of an experiential learning method, where learner can improve their mental models to make better decisions by learning through simulation.

Rizman, Arry, AkhmadThe serious simulation game presented, is developed through the game development guideline set by Richard D. Duke and his colleagues. Keeping in mind that the game must balance the realm of meaning, reality and play as suggested by Casper Hartevald in his “Triadic Game Design” book. The design process also look upon the examples of existing serious simulation game. A group of students from Universitas Indonesia were called as participant respondents of the game. Through the testing of the game, we learn how the game has helped the participants gaining better understanding of the subject.

In conclusion, we have seen how a serious simulation game can help learner to understand complex system which requires an effective learning medium. The game can be used as a learning medium alternatives for professionals and students. By improving their understanding of the system, hopefully they can put the knowledge into practice and solve issues surrounding sourcing strategy.

This research is conducted by M. Rizky Nur Iman, Arry Rahmawan and Akhmad Hidayatno

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Cracking The Truck Dispatch Problem in Open-Pit Mining to Enhance Competitiveness for the Coal Market

Indonesia is a country which has high diversity in energy and mineral resources. As an archipelago with an area of 1,910,931 km2, Indonesia has some of the pre-eminent resources such as petroleum, natural gas, nickel, coal and others. In coal, Indonesia is listed as one of the largest coal producer in the world in 2014. As one of the highest coal producing countries, Indonesia has a reliance on the use of coal for generating electricity or power plant. This is in line with the Indonesian government program in the long-term energy mix of coal has increased the portion of the year 2013 by 24% to 2025 by 33%. But in fact it actually happened inversely where increased production of domestic coal is not followed by a competitive price.

The existence of weakening coal prices, which decreased from year to year, causing the mining sector, especially companies engaged in coal experienced significant negative impacts. One of the most essential where companies are not experiencing growth on corporate profits, but declined.

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Based on these phenomena is the only way for the company to continue running the business activities through efficiency measures on many things to be able to cover operational costs. One of the efficiencies that can be done such efficiency on the operational side.  As mentioned by Alarie & Gamache (2002) and Ercelebi & Bascetin (2009) the material transportation represents 50 per cent of the operating costs for an open pit mine. Therefore, one of the efficiencies that can be done and has a substantial impact through efficient on truck dispatching problem in the mine area

SEMS was proposing to overcome this problem using simulation and optimization approach to analyze the complexity of truck dispatch problem in open pit mining. This approach uses the look-ahead algorithm and  multi-stage algorithm. Solving the issue focuses on the development of look-ahead methods that will be applied to the truck dispatch problem. Simulation and optimization approach on this issue is run simultaneously with the help of software ProModel as the media to solve the problem. Look-ahead algorithm is an approach to solve the problems of the assignment of the fleet to look ahead what will happen near future with based on previous information system gathered as a reference to decide the scheduling for entities that exist in back of the queue. This research basically to answer the question about where this truck should go now and when it leave this place in order to maximaze amount of coal production. The output of the research is to obtain the best assignment rules for truck dispatch problem with four indicators are, amount of coal production, productivity of loader, productivity truck with block and without block.

Using the model, a significant improvement on amount of production has been achieved to enhance competitiveness coal market.

This research is conducted by Achmad Yusaq Faiz Fadin, Komarudin, and Armand Omar Moeis.

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