Industrial Engineering and Logistic management
Permanent URI for this collectionhttps://etd.hu.edu.et/handle/123456789/75
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Item DESIGNING DISTRIBUTION NETWORK FOR HIGHLY DEMANDED COMMODITYCASE OF SOUTH SPRING WATER IN SIDAMA NATIONAL REGIONAL STATE(Hawassa University, 2022-12-24) TSEGAABTESEMAHATIYAA distribution is one of a key activity that has a direct impact on the success and the overall profitability of a given supply chain. If a distribution of a given product managed properly, it will have a great impact on both the success and customer satisfaction of a given SC. However, there are many manufacturing companies in Ethiopia, most of them do not have properly designed distribution network. This research is intended to design a new distribution network for a water bottling company located in Sidama National Regional State Arbegona Woreda..To distribute a given product in cost effective manner there should some decisions be made which include number of regional warehouses, location of regional warehouse and transportation cost to and from the regional distribution. So the research decides the number and the locations of regional distribution centers by utilizing FAHP method. After the locations of the RDCs found, a new distribution network will be proposed and the Transshipment was modeled based on a newly proposed distribution network and solved by using software package find out the optimum transportation cost. After the Transshipment model solved and optimum solution was found the cost effective RDCs was assigned to different demand locations in the region. Finally, the new cost effective distribution network diagram was developed and the cost of transportation was compared to the existing transportation cost of the company to cover all demand location and the newly designed network saves the company 13.7 million ETB annually which is being wasted due to ineffective distribution networkItem EVALUATING AND RANKING FACTORS AFFECTING OPERATIONS OF DRY PORT THROUGH DECISION MAKING MODEL: A CASE OF MODJO DRY PORT(Hawassa Unversity, 2021-10-27) SENATER ABERA MIDEKSACurrently, there are a number of factors that affect dry port operations and these factors need to be identified systematically in order to evaluate significant factors that are highly constrained to their operations. In this regard, this study is aimed to identify the factors that affect the operations of MDP and ranking according to the level of significant impact from top to bottom by developing Analytical Hierarchical Process (AHP) model. A qualitative and quantitative method of research approach was employed and both primary and secondary data were collected. For primary data collection, the researcher used both probability and non probability sampling techniques in which the samples were selected by stratified and purposive sampling respectively from the target population of MDP. Meanwhile, secondary data was collected from published documents or databases such as books, journals, reports, official websites, etc. This work also examines the critical factors contributing to the success of MDP operations. Finding suggests that five main factors and nineteen sub-factors that affect the operations of MDP were identified. From the main factors, information systems are the dominant factor affecting MDP operations followed by service features, dry port capacity, government policy, and hinterland conditions, which took the last place. Furthermore, from the overall factors investigated in this study, lack of coordination between stakeholders and inadequate customs clearance process are the influential factors ranked as the 1st and 2nd level affecting the operations of MDP respectively. The implications of this finding suggested that managers should pay more attention to top-ranked factors and the significance of the research is expected to be of managerial value to dry port operators when eliminating high operational constraint factors to improve the efficiency of MDP operations.Item ORDER PICKING PERFORMANCE IMPROVEMENT IN FAST MOVING GOODS DISTRIBUTION WAREHOUSE(Hawassa University, 2022-08-21) SAHLE MEKTA ZENEBEWarehouses are the areas where goods are stocked in the supply chain. All material handling activities, such as receiving, storage, order picking, accumulation, sorting and consolidation, and shipment of goods, are addressed by warehousing. Order-picking is the most resource-intensive activity in warehousing and it defines the level of service provided to consumers. So, it must be flawless and quick. Shorter order picking travel distance is one of the key performance measures for order picking. The goal of this study was to improve order picking performance through minimization of order picking travel distance in the ALLE Bejimla Hawassa branch. The current assignment of each good was known through direct recording. Following that, consumers' movements were tracked to know how items were picked from their storage. Using measuring tape, the dimensions of each bay and aisle were known, and the data was utilized to calculate order picking travel distance. Based on the multiplicative value of order frequency and minimum ordering weight, items are classified as high value, medium value and low value. Fourteen items have higher value of ordering frequency times weight. For first-class items, order picking travel distance was calculated for a single order and multiplied by order frequency. The Hungarian method and item popularity heuristics were then used to determine the best bay assignment for each item. According to the existing assignment 995.4 meters walking is required to pick most popular items per single order scheme. This distance is minimized to 617.2 meters, 788.7 meters, 805.7 meters and 766 meters using assignment model approach, optimal storage strategy approach, equal time storage strategy and equal space storage strategy respectively. Using monthly flow of items, the fractional volume was calculated. The number of restocks was also calculated for various storage strategies, and the optimal allocation strategy led to fewer restocks.Item INBOUND SUPPLY CHAIN NETWORK DESIGN FOR COFFEE PROCESSING: ALEMAYHU YIRDAW COFFEE PROCESSING PLC(Hawassa University, 2021-07-01) MILION BEKELECoffee is the most important export for the country, accounting for about 34 percent of the value of all exports in 2017/18. However, coffee farmers in producing area are operating at a loss due to selling at low prices to intermediaries who control the downstream channels. The correct transporting and processing of beans are a precondition for good quality coffee which might achieve a higher price. Drying in backyards without any equipment often compromises the quality. Therefore, to provide higher income to coffee farmers, effective integration of downstream operations is vital. This inbound supply chain network design should include the intermediate processes and transportation of coffee from primary market in each kebele to processing plant. The objectives of the thesis was to develop a mathematical model that selects the best supply and drying facility option for coffee product in the coffee processing industry; develop network design optimal cost of coffee drying facility and to identify and describe the key steps in the supply activity and coffee processing facility. In order to address the objectives of the research used questionnaire, interview, experiment and observation to collect data from different primary source of data. On the other hand, assessment of documents or reports of the transport cost, warehouse cost, and inventory cost, drying material cost and labor cost. The model is illustrated using a combination of real and simulated data from the coffee sector. To address the issues of limited plant capacity and increased delivery lead times, including a warehouse located closer to the plant is proposed. The selected options have an influence on the delivery lead time, because delivery lead times should not exceed that assured to processor, which impose restrictions in the model on delivery lead times for maintain the quality of coffee product. An alternative to improve the drying process has been the use of solar energy with solar dryers. Area limitation was used as a constraint in this optimization problem. The results of the optimization model indicated that the total production and transportation costs of the network can be reduced by 5.48% to 13.45%. And also the model selected greenhouse solar dryer facility for dry coffee parchment due to area limitation of the constraint which avoid congestion and mould formation for maintain the quality of coffee productItem DESIGNING GREEN SUPPLY CHAIN MANAGEMENT SYSTEM FOR HORIZON ADDIS TIRE MANUFATURING P.L.C(Hawassa University, 2021-10-17) LEISO LIRANSO GICHAMOThe history of tire manufacturing goes back to early 19th century and in Ethiopia the tire manufacturing industry began in 1972 G.C, where Addis Tire S.C. is first of its kind and currently holds its new name “Horizon Addis Tire Manufacturing PLC”. However, the company being the leading tire manufacturing company, it continued to waste inputs and operated at low level of capacity resulted by different internal and external factors. In an existing status where companies eliminate wastes from their manufacturing and natural environment, HATMPLC imports almost all of its inputs from abroad followed by packaging wastes, and this is the point where the situation needs scientific inquiry and solution. The general objective of this study is to design green supply chain management model in Horizon Addis Tire Manufacturing PLC. Data is collected using interview, document review and observation approaches. Observation was made to understand and structure the tyre production process, eight detailed key informant interviews were carried out and essential documents from the company were reviewed. Data were analyzed in descriptive analyses for performance measurements and waste study. As a result, the existing supply chain structure of the company was structured, and its supply chain processes were discussed. The company is extremely dependent on import from abroad where all of raw materials, except for part of the natural rubber, are imported, and it has a production waste of about 16,129,099.4 in 2011 E.C and 14,366,005.5 ETB worth in 2012 E.C just from tire defect. The company had 55.9% and 48.9% of capacity utilization in 2011 E.C and 2012 E.C respectively, and it improved the reliability and responsiveness performance attributes while cost and flexibility attributes sustained and asset turn over and total supply chain management cost dragged down. Following this, a green supply chain management is designed through the designs of green supply chain processes in accordance with green Supply Chain Operations Reference by applying best practices. To conclude, although HATMPLC is producing essential product, its waste management performance is below its target set. The company needs a governmental attention in consideration with environmental management and market place since the company plays important role in fulfilling the domestic tyre demand and equally contribute to waste accumulation in the countryItem MODELING AND ANALYSIS OF THE DRY PORT TRANSPORT LOGISTICS PERFORMANCE: A CASE OF MODJO DRY PORT(Hawassa University, 2023-10-13) HUNDUMA BERSISATo encourage the country’s economic development, import/export trade is a better and more cost-effective way are using dry ports. Dry Ports are the specific sites to which imports and exports can be consigned for inspection by customs and which can be specified as the origin or destination of goods in transit accompanied by documentation such as the combined transport bill of lading or multi-modal transport document. However, the management of trucks, loading and unloading time, processing of custom duties, port machinery productivity and dwelling time, etc. were the problems at MDP. the research problems in addition were delays at checking points, temporary storage and transport cost at inter-terminal. Therefore, this research was conducted with a model and analysis of Modjo dry port transport logistics performance to overcome the factor affecting the efficiency and effective of the transport logistics in the port. To overcome the problems, primary data collection methods (Site survey: observation, data record, questionary and interview) took place with the help of the company’s workers cooperation whose answers questionary properly 117 of 146 considered in the research. The secondary data source (Text books, articles, journals, theses, and company documents) was used for preliminary identifying the problems and validating the study after the results were analyzed. The raw data collected through different tools in the research were analyzed with the help of SPSS, Excel, and QM for windows software packages. The analyzed data was shown by percentage, mean, table, chart and graphs and the results were shown by graphical and mathematical models. After the results obtained were analyzed and discussed, the research questions; the model of the transport logistics performance, and the performance of its operations were answered. In these results, different performance indicators and their attributes were modeled from the existing model with modifications, in terms of checking points (in-gates) an additional in gate and two other reach stackers at temporary storage will be necessary to be assigned, and the terminal transports should be directly delivering the cargo through CFS to the customers for cost and time optimizationItem MODELING DISTRIBUTION CHANNEL FLOW IN WHOLESALER: THE CASE OF HAWASSA ALLE BEJIMLA ENTERPRISE(Hawassa University, 2021-10-11) HABTAMU YACOB LOHAA distribution channel is a very important and vital aspect for every service-based industry. Since commodities usually consisted major portion of the total service of distribution in logistics, the flow of information and commodity become crucial in channel distribution. The motivation of the problem was observed in the shortage of information flow with the retailing system creates gaps between retailers and Alle Bejimla. Delaying in-retailer requests in lead time and distribution channel in commodity flow causes a gap in information and feedback from the retailer. This leads to customer dissatisfaction and an unbalanced supply-demand chain of need in information and commodity flows in the retailing system. The main objective of this research was to model distribution channels in the Alle Bejimla enterprise Hawassa branch. Under this, it accesses the distribution channel structure of consumable goods in the Alle Bejimla Hawassa branch, examines physical and information flow between Alle Bejimla and retailers, and proposes a distribution channel model. Literature reviews have used this thesis to develop a model for the distribution channel. The main approach used a questionnaires survey and personal observation of some registered retailers in Hawassa. Having a population size of 3988 total retailers quarter of them were targeted. The questionnaire was distributed to 96 responders and total 92 response was received. For the analysis of data statistical analysis by using SPSS software. The finding of the research indicated that the main impact on the logistics of distribution channels was reducing customer bridge, traditional commodity distribution channel, shortage in information flow, delaying in customer request, and moderate customer complaint platform. The result is summarized in the framework model that leads users to understand the current status and the concerning the model and factors used in the distribution channel of commodities and information between retailer and Alle Bejimla. In the research finding problems are shortage in stock, location of the warehouse, technological limitation on distribution, and lack of customer bridge. Finally, the conclusion and recommendation were given to the Enterprise Alle Bejimla and different institutions.Item THE EFFECT OF SUPPLY CHAIN MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE: A CASE OF TABOR CERAMIC PRODUCTS S.C(Hawassa University, 2021-10-25) GUTEMA ALEMAYEHU WARESupply Chain Management (SCM) practices are crucial for an organization to promote the effective management of its supply chain. These practices are initiatives that influence the whole supply chain. Therefore, this practice has great influence on the operational performance of any organization. In Tabor Ceramic Products S.C, the operational performance of the company is highly impacted by the problem in information sharing across the internal/external customers, by planning problems of the company which lead to unnecessary inventory and inefficient use of inventories. The study examines the role of supply chain management practices and the organizational performance at Tabor Ceramic Products S.C. by employing descriptive and explanatory research design with this study mix of qualitative and quantitative research approach. The required data were collected through a systematic random sampling technique from 236 employees of Tabor Ceramic Products S.C. The data collected through questionnaire were analyzed using SPSS software version 21. Descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (correlation and multiple linear regressions) were applied for analyzing the data. The findings show that the companies not well perform in strategic partnerships, customer relationship, high level of information sharing, information quality, as well as internal lean practices. Moreover, the findings show that there is a significant effect on organizational performance. If companies follow the proposed solutions, sustainable supply chain management (SCM) practices can be achieved and recommended that Tabor Ceramic Products S.C should take aggressive action on improving the supply chain management practice to improve its performance. This study contributes some part to the improving the supply chain management practice and to propose framework by describing to improve its performance in Tabor Ceramic Products S.CItem IMPROVING PERFORMANCE OF WAREHOUSE ORDER-PICKING PROCESS: A CASE OF ETHIOPIAN PHARMACEUTICAL SUPPLY AGENCY ARBAMINCH BRANCH(Hawassa University, 2022-04-27) AMAN DEMELASH ALEMUResearches in relation with improvement of order picking process are hard to find in countries like Ethiopia, as topics like this are overlooked. But studying on the improvement of order picking process is great for the field and looking at it in detail may bring changes in performances of warehouses, as it is necessary to look from the bottom to see the big picture or else looking only the big picture may not let us to know the root causes as needed. Being one of the most time consuming processes in the field of warehousing called, picking has the highest impact on the service level. In turn, from the warehouse activities picking is the most complex, labour intensive and costly. However, due to the customer demand fluctuation increased allocation strategy’s need to be reviewed and adjusted over time for the reasonable utilization of warehouse space. Since the main goal of this thesis is to improve performance of warehouse order-picking process in Case of Ethiopian Pharmaceutical Supply Agency Arbaminch branch. Under this, it assess the current states of order picking process in warehouses of the agency, identify the type of storage system, picking strategy and bottlenecks in the warehouse, identify variables to improve overall order-picking time and propose solutions using mathematical and analytical models. This research applied the DMAIC (Define-Measure-Analyze-Improve-Control) model to improve the order picking process in case company warehouse. The order pick delays affected customer satisfaction, DMAIC helped the researcher to define the pick problems, measure the current pick performance, and analyze the root causes. For the analysis of collected data Microsoft Excel, Cause and Effect analysis, Pareto Chart analysis and POM-QM software was used. The finding of this research indicates that the performance of order picking process was affected by long searching time and lack of product knowledge. This phenomenon was caused due to random storing arrangement in the warehouse and poor pickers’ educational background level. These top two problems were source of 80 % problem that cause delay in order picking process, so that they can forward for solution making. The researcher develops new assignment model formulation and propose conceptual framework as an improvement and control methods. The comparison result between before and after implementation of the storage assignment strategy indicates that there is a significant improvement in the order picking time, which was reduced by 34.4 minutes. Finally, the conclusion and recommendation were givenItem SUPPLY CHAIN ANALYSIS OF HANDMADE TEXTILE MANUFACTURING INDUSTRY USING SUPPLY CHAIN OPERATIONS REFERENCE(SCOR) MODEL: ACASE OF GAMO ZONE(Hawassa University, 2022-10-27) AYGOTA AKA ADAMOSupply chain management is a process of designing, developing, optimizing, and managing the internaland external components of the supply system in a consistent manner with the overallfirm‘s objectives and strategies. In today's businessenvironment, companies are operating in supply chains to increase efficiency and truly meet the customers' demand. Because of theimportance of supply chain management to compete in the current market, there is agrowing need of supply chain operation improvement to improve its process efficiency and to meet the customers’ requirements. This study aimed to analyze supply chain operation of handmade textile manufacturing industry in Gamo Zone to improve its efficiency and satisfy customers’ needs. Surveying method of data collection using interview, questionnaire and observation was used to collect the data. Both primary and secondary data were used to identify challenges and gaps of the existing supply chain management. The study utilized Supply Chain Operations Reference (SCOR) model to analyze the existing SC operations and to identify opportunities for future improvement of the supply chain of the case industry. Based on the analysis of the existing SC operation, the main challenges identified were high cost of sourcing due to prolonged supply chain process, shortage of raw material and quality problem, low production efficiency and capacity utilization, lack of modified weaving technologies, lack of appropriate production schedule, poor order and delivery management and weak marketing system. Because of these gaps of SC operation, the overall performance of supply chain of the case industry was poor. Supply chain analysis to improve the efficiency of the case industry was performed based on analysis of existing SC challenges and mapping future improvement on SC planning, sourcing, production and delivery processes using SCOR model. This improvement on SC operation can be achieved by changing source point to local potential suppliers of raw materials, minimizing the number of non-value adding SC actors by linking weavers with suppliers and consumers, using modified production technologies, strengthening direct market linkage with final product users and establishing distribution center for weaving associations in urban areas. This improvement action will minimize cost of sourcing and production, time of delivery, and increase SC efficiency of the industry to meet customers’ demand