Study of perfomance based logistics system

• Main Author: Low, Yue Xin.
• Other Authors: Rajesh Piplani
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Engineering::Industrial engineering::Engineering logistics
• Online Access: http://hdl.handle.net/10356/46188
• Institution: Nanyang Technological University

This project aims to conduct a study on Performance Based Logistic systems (PBL); how this system was mooted, what defines this system and how it works. As PBL systems uses performance metrics defined in contracts to determine payout, how performance metrics can be attained is of high importance to the service providers working under the PBL scheme. One common performance metric often defined is the Time Average of Backorders (TB.O); since backorders will result in a delay in the subsequent echelons of the entire supply chain. In this project, the simulation software named Arena will be used to vary different factors that could contribute to a low TB.0; so as to identify the factors that TB.O is most sensitive to. The service provider can then channel resources to ensure that the monitoring or improvement of these factors is carried out; efficiently and effectively achieving the attainment of a low TB.O. This project will also discuss the different challenges posed by the PBL contracting systems. Recommendations, if any, will be documented. In addition, case studies on the implementation of PBL contracting systems will be evaluated. This will then help to determine the penetrating ability of PBL into other sectors; beyond its present dominance in the aviation and defense industries.