Industrial Engineering and Logistic management
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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 IT ADOPTION MODEL DEVELOPMENT FOR SUPPLY CHAIN MANAGEMENT: CASE OF ETHIOPIAN MANUFACTURING FIRMS(Hawassa University, 2018-10-22) TAMIRU TESSEMAIn the 21st century companies are required to continuously upgrade and improve their business activities in order to survive and achieve their business goal. One of the competition areas is an effective and efficient information flow along supply chain (SC). The information technology (IT) is one of the biggest enablers of the modern Supply Chain Management (SCM). However, SC systems in Ethiopian Medium and Large-Scale Manufacturing (MLSM) Firms found as fragmented SC, poor information exchanges, outdated systems and paper work. The purpose of this study is to examine IT adoption status and to develop its adoption model to Ethiopian MLSM firms. Cross-sectional survey was conducted on 438 samples from total 2,758 Ethiopian MLSM firms. Both a qualitative and quantitative data were collected using questionnaire survey, interview and document investigation, then descriptive and inferential statistical analysis were conducted by using Statistical Packages for Social Science (SPSS) version 21 and Microsoft office excel. The results indicated that the IT adoption status among Ethiopian MLSM firms was inadequate at all, despite good improvements in adopting some IT tools such as the Internet, Intranet and Barcode Scanner. The result also shows positive and strong correlation between the role of IT adoption and SC performance with correlation coefficient r = 0.824, even though a weakness to accept sophisticated IT tools, such as ERP, EDI, RFID, etc. The study suggests firms to exploit CSFs and reduce associated challenges to adopt IT, government to support these firms by policies, infrastructure, subsidies, incentives and training and universities to focus on producing IT skilled professionals. Finally, study proposes a model of IT adoption for Ethiopian MLSM firms to enhance their competitive advantage and improve firms’ performanceItem 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 SUPPLY CHAIN PERFORMANCE EVALUATION AND MODELING: CASE OF SIDAMA COFFEE FARMERS‟ COOPERATIVE UNION(Hawassa University, 2019-10-22) GASSA MAGARA MAMOThis thesis aims to propose a supply chain (SC) performance evaluation model in the coffee processing industries: Case of Sidama coffee farmers’ cooperative union (SCFCU). Coffee is a major agricultural export commodity of Ethiopia, particularly the Sidama Zone, which has a high potential for specialty coffee. From Sidama Zone, SCFCU has major contribution supplying coffee product to domestic and export market unifying 61 coffee farmers’ cooperatives and being the second-largest union in the country. However, the primary coffee farmers’ cooperatives are facing enormous challenges at the current time in sourcing methods and production processes decreasing SC performance associated with quality of raw material and costly production making them unable to be a competitive and unprofitable business. They have no suitable SC performance evaluation model, standardized business operation process and methods that can improve their inter-organization and SC performance in a sustainable way. To solve these problems, the thesis study on SC performance evaluation and modeling was conducted. To achieve the study goal, investigation and reviewing of an appropriate SC performance evaluation model were carried out to have comprehensive knowledge. From several SC performance evaluation models, the SCOR model is identified as an appropriate SC evaluation model being dynamic, balanced and universal model. Significance of the study, using the SCOR model is believed to give an insight for the primary coffee farmers’ cooperatives as well as other concerned bodies about the existing challenges of coffee processing industries SC suggesting possible solutions to the problems and enabling them to improve SC performance. Because SCOR model designated to analyze SC performance and optimize the various processes in SC and it can play an important role in identifying problem-solving ways being starting points to find better ways to improve SC performance, in coffee processing industries making them more optimal and sustainable performance improvement. To achieve the study goal, a descriptive research design was employed and 13 cooperatives were selected unified in SCFCU from Sidama Zone in five Woreda within three clusters from the total population 182, the sample size was 125 respondents using Yamane sample size decision model and random sampling system. The primary data were collected using semi-structured questionnaires, interviews and field observation. Secondary data were collected from different published and unpublished sources. Data analysis was on the basis of qualitative and quantitative research approaches. The result was a high performance of reliability and responsiveness, the poor performance of Plan and Source process having moderate overall SC performance. Using the study result, SC modeling was made considering suitability for coffee processing industries. Finally, from data analysis and result discussions, conclusions were drawn and recommendations made on gapsItem FACILITY LAYOUT DESIGN TO EFFICIENT SPACE UTILIZATION AND INSPECTION PERFORMANCE: CASE OF MODJO DRY POR(Hawassa University, 2018-10-17) BONDE ASSEFA SHULISHAEthiopia is landlocked country which uses the Ethio-Djibouti corridor the main outlet to the sea. However, this generates high demurrage cost at Djibouti port. To overcome these challenges, Ethiopian government established about eight dry ports in Ethiopia. From those, the Modjo dry port is large and 95 % of goods are flow through it. This makes congestion in the warehouse and terminal due to lack of suitable facility layout for inspection performance. So, this paper proposes an alternative facility layout design of warehouse. This done by using primary and secondary source of data which collected from warehouse managers, drivers, loading and unloading labors, customers of Modjo dry ports. However, the researcher use surveying, different journal, website and report from dry port as basic inputs for models to propose modified alternative layouts. The models used were classified in different levels regarding their compatibility to execute paper works as per requirement. Those were mathematical, Computer aided design model (AutoCAD) and simulation Model. The mathematical model was mainly used to calculate areas, volumes of existing and modified alternative layouts of the warehouse. The AutoCAD model was used to draw out the alternative facility layouts by feeding the input data collected from field survey by using Global Positioning System GPS and dimensions measured by using standard meter. The results of the study were validated by descriptive event simulation software which is known as any logic software. Finally, depending on the result of simulation, and model output of AutoCAD the alternative layouts were proposed. The capacity of space dedicated for existing warehouses could accommodate the 120 TEU. However, for the alternative layouts of I, II, III & IV are 564, 752, 556 & 796 TEU respectively. Depending on these results the alternative scenarios were proposed in order to mitigate the challenges facings to Modjo dry port. The contribution of this study is to realize the gaps of knowledge in using pallet racks for space utilization with aisle or passageway in the warehouse and point out the future research directions in facility layout design to efficient space utilization and inspection performance around the dry port areaItem 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 DISCRETE EVENT SIMULATION BASED OPERATIONAL PERFORMANCE ANAYLSIS OF MODJO DRY PORT, OROMIA, ETHIOPIA(Hawassa University, 2018-10-22) MAHMUD ABDURAHMANContainer terminal operation consists of gate, container yard, and train and berth operation. The facilities used in the container terminal are reach stacker cranes, empty container handler, and yard tractors. The loading sequence of containers does not follow a FIFO (first in-first out) policy, and hence, the arrival order of containers does not define the sequence in which they are loaded. The purpose of this study was operational performance analysis of container terminals for the case of Modjo Dry Port. The study determined key port performance indicators (KPIs) of container terminal, factors affecting operational performance at container terminals and productivity level for container terminal. The researcher proposed a Desecrate Event Simulation (DES) model and a heuristic procedure for container’s sacking plan and for gate operations. The main objective of formulating different scenarios was to find possible sets of input parameters, structural assumptions or model specifications that could lead to best performance. The data was collected using questionnaire, interview, conversation and observation the data was analyzed using descriptive statistics. The result of the analysis indicated that the numbers of gate operations, truck visit time, container dwell time (equipment, labor and land) productivity, container traffic are among the key performance indicator (KPIs). The study found the factors that affect the efficiency of operational performance are gate capacity, gate working hours, and resources within the terminal and truck arrival patterns container stacking system, custom clearance, container dwell time, operator experience, yard layout and maintenance problem. Current container terminal productivity level is poor comparing with industry bench mark of labor, equipment, and land. Based on the findings of the study, it is recommended that performance improvement strategy is changing current stacking strategies to dwell time segregated container stacking strategies. In addition, specific recommendations were made to address the issues identified which, if implemented, could significantly address the current inefficiencies observed in the Modjo Dry Port’s operationsItem 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 optimization