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Eindhoven University of Technology MASTER Dock & Yard management at KLM Cargo a truck sequencing study with multiple levels of location information availability Blonk, M. Award date: 2017 Link to publication Disclaimer This document contains a student thesis (bachelor's or master's), as authored by a student at Eindhoven University of Technology. Student theses are made available in the TU/e repository upon obtaining the required degree. The grade received is not published on the document as presented in the repository. The required complexity or quality of research of student theses may vary by program, and the required minimum study period may vary in duration. General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain

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Page 1: Eindhoven University of Technology MASTER Dock & Yard ...Eindhoven University of Technology MASTER Dock & Yard management at KLM Cargo a truck sequencing study with multiple levels

Eindhoven University of Technology

MASTER

Dock & Yard management at KLM Cargoa truck sequencing study with multiple levels of location information availability

Blonk, M.

Award date:2017

Link to publication

DisclaimerThis document contains a student thesis (bachelor's or master's), as authored by a student at Eindhoven University of Technology. Studenttheses are made available in the TU/e repository upon obtaining the required degree. The grade received is not published on the documentas presented in the repository. The required complexity or quality of research of student theses may vary by program, and the requiredminimum study period may vary in duration.

General rightsCopyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright ownersand it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.

• Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain

Page 2: Eindhoven University of Technology MASTER Dock & Yard ...Eindhoven University of Technology MASTER Dock & Yard management at KLM Cargo a truck sequencing study with multiple levels

August 2017

Schiphol

Dock & Yard Management at KLM Cargo

A truck sequencing study with multiple levels of location information availability

Master Thesis

by Maarten Blonk

student number: 0909632

Eindhoven University of Technology

Industrial Engineering and Innovation Sciences

Supervised by dr. L. P. Veelenturf Eindhoven University of Technology

B. Krol Air France – KLM

Co-reader prof. dr. A. W. Veenstra Eindhoven University of Technology

Third assessor prof. dr. T. van Woensel Eindhoven University of Technology

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Keywords: Air cargo transportation, Air freight, Truck sequencing, Truck scheduling, job scheduling,

Truck handling, priority rules, discrete event simulation, Enterprise Dynamics, Air France, KLM, KLM

Cargo, Dock & Yard Management

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Thesis details

MSc. Thesis

Title: Dock & Yard Management at KLM Cargo

Subtitle: A truck sequencing study with multiple levels of location information availability

Author

Name: ing. M. Blonk

Student number: 0909632

Master programme: Operations Management & Logistics

Contact: [email protected]

Graduation Committee

First supervisor: dr. L.P. Veelenturf

Assistant Professor, Industrial Engineering & Innovation Sciences (OPAC)

Second supervisor: prof. dr. A.W. Veenstra

Full Professor, Industrial Engineering & Innovation Sciences (OPAC)

Third reader: prof. dr. T. van Woensel

Full Professor, Industrial Engineering & Innovation Sciences (OPAC)

External supervisor: B. Krol

Project Manager Air France – KLM Cargo, Business & Process Improvement

Eindhoven University of Technology

August 14, 2017

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Contents 1. Introduction ........................................................................................................................................... 1

Part I ............................................................................................................................................................ 4

2. Introduction to air freight transportation ............................................................................................... 5

3. Research outline .................................................................................................................................. 13

4. Literature review ................................................................................................................................. 20

Part II ......................................................................................................................................................... 24

5. Current process performance .............................................................................................................. 25

Part III ....................................................................................................................................................... 35

6. Experimental design and modelling .................................................................................................... 36

7. Results ................................................................................................................................................. 51

Part IV ....................................................................................................................................................... 64

8. Discussion and conclusions ................................................................................................................ 65

Bibliography ............................................................................................................................................... 68

Appendix A – Detailed air cargo process ..................................................................................................... 1

Appendix B – Truck arrival process ............................................................................................................. 5

Appendix C – Truck streams at the SPL Hub ............................................................................................... 6

Appendix D – Cause and effect diagram ...................................................................................................... 7

Appendix E – Calculation increase in FAP .................................................................................................. 8

Appendix F – Data description and availability ............................................................................................ 9

Appendix G – Statistical testing (z-test) ..................................................................................................... 12

Appendix H – Enterprise dynamics 8 ......................................................................................................... 13

Appendix I – Additional model assumptions .............................................................................................. 14

Appendix J – Model structure ..................................................................................................................... 16

Appendix K – Model parameters: current state .......................................................................................... 19

Appendix L – Model parameters: other scenarios ...................................................................................... 26

Appendix M – Model results: FAP per day ................................................................................................ 42

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Preface

This month I proudly end an important, beautiful and fun period of my life. For four years I did my

bachelor’s on Aviation engineering, security and technology. The last three years of my student career I

broadened my educational horizon by pursuing my master’s degree at the TU/e, with a focus on Operations

Management and Logistics. This thesis document completes the final assignment of the master’s degree.

This thesis was written in cooperation with Air France – KLM Cargo and Eindhoven University of

Technology, its purpose being to enhance operational KPIs of KLM Cargo at Schiphol. Truck sequencing

strategies were applied to European trucking streams converging at Schiphol, in order to eventually get all

shipments processed on time to connecting flights.

I would like to thank everyone who contributed directly or indirectly to the writing process. In

particular, my university supervisor dr. Luuk Veelenturf, who guided me through the complete writing

process and challenging times, by giving feedback on a regular basis. Furthermore, I would especially like

to thank my external supervisor, Bart Krol, for giving me the opportunity to perform this study at KLM

Cargo, sharing all of his knowledge and supporting me wherever he could.

Next to my first supervisors, I would like to thank my second supervisor prof. dr. Albert Veenstra for

his feedback during two key moments in the process and prof. dr. Tom van Woensel for his feedback and

useful insights during feedback sessions.

In addition, I would like to thank all KLM Cargo employees who were involved during data gathering,

modelling, or were there to enlighten me with their knowledge on air cargo processes.

Finally, my thanks to go out to those around me including, my parents and other relatives, my girlfriend

and all of my friends for their continuous support and contribution throughout the process.

Thank you for taking the time to read this report, which will hopefully be a valuable asset to you. Enjoy!

Yours most sincerely,

Maarten Blonk

Schiphol, The Netherlands

August 14, 2017

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List of abbreviations

Abbreviation Explanation Page

ACN Air Cargo Netherlands 2

ARR Milestone: Cargo arrived from airport of destination 7

AWB Air Waybill 9

CET Chassis Exchange Terminal 21

DC Distribution Centre 23

DEP Milestone: Cargo departed from airport of origin 7

ED8 Enterprise Dynamics 8 36

EDD Earliest Due Date 17

EHS European Handling System 11

FAP Flown As Planned 1

FBL Freight Booked List 6

FCFS First Come First Served 17

FFM Milestone: Freight Forwarding Message 7

FIFO First In First Out 21

IATA International Air Transport Association 5

KLM Koninklijke Luchtvaart Maatschappij 1

KLM Cargo Air France - KLM Martinair Cargo 1

KPI Key Performance Indicator 1

MTD Moving Truck Device 10

M-ULD Mixed Unit Loading Device 9

NFD Milestone: Notified For Delivery 7

PCHS Pallet Container Handling System 14

RCF Milestone: Received from flight at airport of destination 7

REST Remote Explosive Scent Tracing 10

RTFK Revenue Tonne Freight-Kilometres 1

SOT Milestone: Shipments on Time 25

SPL Hub Schiphol Hub of Air France – KLM Cargo 1

SPT Shortest Processing Time 17

STD Scheduled Time of Departure 29

TAS Truck Appointment System 20

TNO Netherlands Organisation for applied scientific research 2

TPT Throughput Time 30

T-ULD Through Unit Loading Device 9

ULD Unit Loading Device 6

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Executive summary

KLM Cargo functions as the freight handling division of KLM, which handles more than 700,000

tonnes of freight every year. Cargo transported from other continents by airplane to Schiphol through the

SPL Hub belongs to the import cargo stream. Cargo arriving from Europe on its way to other continents is

considered to be export cargo. Two-thirds of the total export freight volume of KLM Cargo is gathered

from outstations all over Europe. Outstations are warehouses which are operated by third party handling

agents and are used to collect cargo from local customers. The hundreds of thousands of tonnes of cargo

handled every year, are transported by third party road feeder services (trucks) to Amsterdam Airport

Schiphol where it is collected and redistributed to other continents. The point of unloading, collection and

redistribution of all shipments of KLM Cargo at Schiphol is called the SPL Hub and operates as a cross-

dock.

The current truck arrival process at the SPL Hub can be divided into multiple sub-processes consisting

of the identification and authorisation of the truck driver, a screening procedure for unsecured cargo,

parking and driving on the hub’s terrain and unloading. Currently, all trucks are handled on a First Come

First Serve (FCFS) basis.

The performance at the SPL Hub is measured by a Key Performance Indicator (KPI) called Flown as

Planned. This KPI indicates the amount of shipments which were transported on the planned flights or

earlier than planned. This KPI is used to communicate the performance of KLM Cargo to customers and

other stakeholders. Customers of KLM Cargo are freight forwarders who collect cargo from shippers and

arrange all the transport legs of the supply chain until the final destination.

Currently, three problem areas can be recognized which cause an undesirable low value for the Flown

as Planned (FAP) KPI, which are: (1) ineffective truck schedules, violation of set delivery times by

customers and inefficient truck loading at outstations; (2) inefficient warehouse operations at the SPL hub;

and (3) a lack of control on truck streams from outstations to the SPL Hub. The latter problem area is

determined to be the research scope and is specifically defined as: ‘the transit flow from the outstations to

the SPL Hub and specifically from departure at the outstation until unloading at the SPL Hub’.

Data analysis performed during this study shows a clear positive relationship between (1) the time

period between unloading until flight departure time (“connection time”), and (2) the probability that a

shipment has Flown As Planned (positive FAP). To enhance the shipment connection time, within the scope

of this research, the processing time and waiting time of a truck containing this shipment should be

minimised. This should be done specifically for shipments that have a short connection time.

Truck scheduling has received quite some attention in container terminals industry and cross-docking

literature, however not specifically in the air cargo environment, where deadlines are tight. A more

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operational approach than refinement of a truck schedule, is the use of job scheduling. Literature on job

scheduling shows that four priority rules or sequencing strategies are commonly applied in order to

influence the throughput time of a job. This job is used as an analogy for the incoming shipments. The

priority rules are the following: FCFS (minimises variance in throughput time), Earliest Due Date (EDD -

minimises lateness of a job), Shortest Processing Time (SPT - minimises average throughput time by

minimizing average waiting time), and a variant on the commonly used Moore’s algorithm (minimises

number of tardy jobs).

As an addition to the current literature, a combination between job scheduling and future information

on job arrivals has been examined, in order to show the negative or positive effect of a higher level of

information that is available. These two aspects, especially within the air cargo industry, have not been

studied previously.

A combination of the stated priority rules and three levels of information that is available on the truck’s

location results in 9 future design scenarios.

To test these future designs, discrete event simulation modelling has been applied. 4 months of

historical data (Feb., Mar., Apr. and May 2017) have been used as an input to the model. The verified and

validated model on the current state handling process at KLM Cargo, has been used as a performance

baseline to the other scenarios.

The overall conclusion on this research is that EDD and Moore’s algorithm sequencing strategies are

beneficial for the FAP value, especially during the weekends. An increase of the level of information

amplifies this positive effect to a certain extent, due to the increasing waiting time involved with the level

of information. Although the amount of high potential shipments is limited, because the vast majority of

the cargo has a large connection time on arrival, sequencing strategies are able to save 94% of high potential

lost shipments.

The advice to KLM Cargo is, based on the model results from this research project, to perform a follow-

up study on the financial consequences involved with the implementation of a truck sequencing system.

With that, it is advised to start to investigate Scenario B and Scenario D which require the lowest investment

costs and are the least complex to implement. Furthermore, advised is to rerun the model in the future, when

process optimisations have been implemented at outstations, and new data is available.

Additionally, two recommendations can be made based on the insights gained by this research project:

(1) a review of the currently used transit times, which seem to be too short now, and finally (2) transferring

the process of securing shipments to outstations in order to reduce truck processing time.

Future research by KLM Cargo could be on: (1) the usage of a truck sequencing system for high value

shipments, (2) the implementation of a mobile application for truck drivers to enhance truck stream

visibility.

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1. Introduction

Koninklijke Luchtvaart Maatschappij (KLM) has officially been founded as a Dutch airline in 1919,

with its first flight flown in 1920 from London to Schiphol (Air France - KLM Group, 2016b). The first

freight building of KLM is commenced in 1967 at Schiphol, whereafter the second and third building were

finished respectively in 1982 and 1991. After the merger in 2004 with the major French airline Air France,

KLM is part of the Air France – KLM Group.

Since 2008, the airline Martinair is fully owned by Air France – KLM, hence the present name of its

cargo division: Air France KLM Martinair Cargo (KLM Cargo). 457 destinations are accessible from the

two hubs in Paris Charles de Gaulle and Amsterdam Airport Schiphol by operating more than 170 aircraft

and an extensive European trucking network (Air France - KLM Group, 2017). In total Air France KLM

Martinair Cargo employs 4,600 people worldwide, transports around 1.2 million tonnes of cargo and has a

combined revenue of 2.5 billion euros (Air France - KLM Group, 2016a).

With a headcount of 1200 and a total operation area of 68,000 m2, the Schiphol Hub (SPL Hub) of Air

France – KLM is a major cargo handler at Schiphol (Air France - KLM Group, 2016). In 2015, more than

700,000 tonnes of cargo were carried with a revenue tonne freight-kilometres (RTFK) of 5,429 million.

RTFK is a unit of measure of freight transport.

In 2016, KLM Cargo rearranged their truck arrival area in front of the air cargo terminal (SPL Hub) to

improve the safety level. Cargo delivered from outstations is transported by third party trucking companies

contracted by KLM Cargo and is handled in Freight Building 3. This is one of the three buildings used by

KLM Cargo. A total of 17 different trucking companies and subcontractors are currently transporting goods

from between 80 and 100 outstations directly or indirectly to Schiphol. A large part of the trucks are claimed

to be too early (around 70%), 20% of the trucks arrive too late, meaning only 10% of the trucks arrive on

time. Close monitoring and control of the arriving trucks is currently lacking and trucks are handled with a

FCFS service policy. Deadlines are missed, according to several problem owners, due to the current service

policy at peak-hours. The KPI on the amount of ‘Flown as Planned shipments - FAP’ is currently around

80 percent at the SPL Hub. This KPI is used to communicate the air carrier’s performance to customers.

An increase by 1 percent, which will be shown later, will lead to a high increase in revenue. To enhance

this figure, more shipments need to reach the minimum shipment connection time upon unloading, which

should result in a higher output performance of the warehouse. The currently used minimum connection

time of 5 hours on arrival is based on the required process time between arrival of the truck and the departure

of the aircraft.

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KLM Cargo provided the assignment to investigate the current state of the handling performance of

trucks arriving mainly from outstations in Europe at the SPL Hub, and to eventually design an optimized

arrival handling system to increase the FAP.

Earlier research done by the Netherlands Organisation for applied scientific research (TNO) in 2015

(Van Merrienboer, 2015) shows the possibilities and gains of a real-time smart data platform for logistics.

By combining data from several sources and analysing this data, smart applications could enhance

efficiency. Four information steps are necessary to enable smart data: real-time data availability, data

analysis & algorithms, information sharing and control on the supply chain. From May 2012 until April

2015 a European project called ARTEMIS used DEMANES technology the goal being to produce tools for

designing, monitoring and operating large embedded network systems (Artemis, 2015). A pilot was done

in the port of Rotterdam using this technology to reduce trucking queues, waiting times at the terminals and

truck turnaround time. By using two prediction models it was possible to predict peak-hours more

accurately. Trucking companies were able to adjust their planning upon this prediction to enhance

efficiency. This could also be an option for KLM Cargo for a few of their truck streams.

In the past, local initiatives at Amsterdam Airport Schiphol were already taken to reduce queues at the

different stages in the supply chain. Traditionally, every forwarder picks up their own freight at the shipper

resulting in a lot of truck movements, half-full trucks and queues at air carrier handling agents. Another

TNO initiative joined by Air Cargo Netherlands (ACN), resulted in the so called and award-winning

Milkrun project (ACN, 2016). Inspired by the old-fashioned milk trucks which collected milk from different

farmers, this project essentially arranged the same logistical setup only now with freight. By enhancing

cooperation between different logistical parties, less throughput time is created and a more efficient way of

working is realised. To monitor performances of all parties in the supply chain, a tool was built which is

able to show real-time data on throughput time, waiting times, truck utilisation, fuel consumption and CO2

reduction by making use of the Milkrun concept.

Practical and scientific value

The current performance of KLM Cargo is increasingly questioned by customers and needs to be

improved on short notice. Truck congestion and inefficient scheduling at the SPL Hub are presented by

KLM senior management as a great cause for concern which needs further investigation. This research

gives insights on possible benefits of using sequencing strategies to control truck movements on and around

the SPL Hub. Additionally, the report will fill the gap between the current process improvements at the

outstations and at the SPL Hub’s warehouse.

This research project has scientific value because it shows the effect of using priority rules on jobs with

multiple deadlines (truck contains multiple shipments with different due dates). This is a topic which has

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little attention among studies on scheduling. Furthermore, this research project provides insights on the

impact of combining priority rules with different levels of information on future arriving jobs, being an

addition to the current literature. Strategic truck scheduling in crossdocking is no uncommon subject, but

operational truck scheduling, especially within the air cargo industry, had little attention yet.

Outline

The first part of the report will give an introduction on the research subject with additional background

information to understand the air cargo supply chain. This includes the research outline, research scope,

and relevant literatur on the subject of truck and job scheduling.

The second part contains a description of the current state of the truck arrival handling process, which

includes a process analysis and current performance analysis.

Part III contains the future state of the truck arrival process at the SPL Hub. Multiple scenarios are

created and modelled by using simulation techniques in order to assess the performances of the solution

designs.

The final report part, part IV, will provide the research conclusions, recommendations and is concluded

with a research discussion.

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Part I

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2. Introduction to air freight transportation

To be able to understand the solutions designed in this research project, it is necessary to grasp the full

concept of ‘air freight transportation’. This chapter provides a brief introduction on the air cargo supply

chain which gives insights on the involved parties and KPIs during a shipment from shipper to consignee.

Furthermore, a description is given on the different truck streams that operate at the SPL Hub of KLM.

2.1 The supply chain

Transporting cargo all over the world can be done in various ways. For example, by land transport (rail

or road), water transport (inland, short sea or ocean shipping) or by pipeline. Cargo that needs to be

transported over a long distance with a high time urgency, can also be transported by air. Since this transport

mode is relatively expensive, only cargo with a high value and a critical delivery time are transported by

air.

KLM Cargo transports a wide variety of goods, such as airmail, live animals, express parcels,

perishables, pharmaceuticals, valuables, technical supplies and luxury consumer goods. Customers of KLM

Cargo are postal companies, couriers, but primarily forwarders. Air cargo forwarders provide a door-to-

door supply chain solution for a shipper where an airline account for the airport-to-airport supply chain

part.

KLM Cargo is a member of the Cargo IQ group initiated by IATA, which enhances the visibility of the

air transportation supply chain by defining milestones during the shipment’s trip and performance

measurements for every subpart of the chain (IATA, 2017). The supply chain parties involved in air freight

transportation are, at a high level, described in Figure 1. A detailed description of the air cargo process is

given in Appendix A – Detailed air cargo process. The remainder of this chapter part contains the most

relevant subjects of this appendix.

Shipper’swarehouse

Forwarder’sbranch facility

Handling agent’s warehouse/hub

Airport BHandling agent’s warehouse/hub

Forwarder’shub

Airport A

Forwarder’shub

Forwarder’sbranch facility

Consignor

Figure 1. Air freight supply chain parties (high level)

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Milestones

An Airport-to-Airport Route map is used between shipping parties, which is a tool for supply chain

parties to monitor and control the shipment process (e.g. in Figure 2). On this route map, different

milestones in the air carrier’s supply chain are shown and can contain three different colours. A green

milestone means that the shipment has arrived in time, or with some offset at that stage. Red indicates that

a milestone has failed i.e. shipment is delayed. Blue indicates a future milestone. For every milestone, the

planned time and the actual time is indicated. These milestones show what part of the shipping process had

setbacks. The most important milestones for this research project are described below, starting with the

process at the handling agent’s warehouse.

Figure 2. Cargo IQ route map for one shipment showing the successful and unsuccessful milestones

Once the cargo is unloaded at the handling agent, it is temporarily stored in the warehouse, brought to

the break-down area when palletised or brought to the build-up area. This warehouse process is coordinated

by earlier made allocations on shipments to flights. A Freight Booked List (FBL) determines which

shipments need to be picked and build upon Unit Loading Devices (ULDs) at the build-up area for a single

destination (IATA, 2016). ULDs are large metal plates where shipments can be stacked on and is used as a

standardised piece of equipment in the air cargo industry. As soon as all ULDs for a single flight are

finished, a flight manifest is created with information on the weight and size of the ULDs. The air carrier

uses, amongst other documents, this manifest to create the aircraft load plan.

The ULDs are transported to the hold area where they await ramp transportation to the aircraft. When

the ramp transportation deadline is reached, the ULDs are brought to the aircraft parking position. The

cargo is loaded onto the aircraft as described in the final load plan and any discrepancies between the actual

load plan and the transported cargo are listed. Passenger aircraft can take a relative small amount of cargo

underneath the passengers in the so-called aircraft belly. Another option is to transport cargo in a full freight

aircraft and in this case both the main deck and the belly are used to store cargo. Finally a hybrid transport

solution of these two options is air transportation of cargo by a combi aircraft where one half of the aircraft

is occupied by passengers and the other half is filled with cargo.

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Once discrepancies are resolved, the flight will depart and another Cargo IQ milestone is reached: DEP.

This milestone indicates the departure of cargo at the airport of origin. An important KPI of the air carrier

is calculated by the achievement or failure of this milestone. This KPI, which will be explained at a later

stage, is used for communication purposes towards the customers on the air carrier’s performance.

After the flight has departed, all necessary information on the cargo is distributed to the down line

stations and authorities at the destination airport. One of these messages is the Freight Forwarding Message

(FFM) which contains exactly the content of the on board ULDs.

At arrival, an ‘arrival at the airport of destination’ milestone is created: ARR. At this time a mirrored

process will occur. The cargo is unloaded from the aircraft and is moved to the warehouse. After the

shipments are received at the warehouse, an RCF milestone is created. Transit cargo will be stored in the

warehouse and re-enter the process at the start of the airline supply chain.

The forwarder at the destination is being informed through a message that the cargo is ready to be

picked up at the air carrier’s warehouse. A Notified for Delivery (NFD) message is in this case created and

a certain time period later the cargo will be picked-up by the forwarder.

This subpart of the total supply chain is illustrated in Figure 3.

Shipments are accepted by the

air carrier s handling agent

Shipments are sorted, stored and build on

ULDs

ULDs are transported to

the aircraft

ULDs are loaded on the aircraft

Aircraft departs from airport A

Aircraft arrives at airport B

ULDs are transported

from the aircraft to air carrier s handling agent

DEP

ARR

Freight Forwarding Message (FFM) is

sent to the handling agent

FFM

Handling agent receives the

ULDs

RCF

Shipments are sorted and

stored

A message is sent to the

forwarder that shipments are ready for pick-

up

NFD

Forwarder arrives at the

handling agent

Figure 3. Shipping: handling agent and air carrier

2.2 Air cargo terminal truck streams

At KLM Cargo, shipments are delivered to the SPL Hub of KLM by truck or by aircraft. It is possible

that cargo is transferred from flight to flight, just like passengers, and in most cases this could be from truck

to aircraft. The truck has in that case also a flight number and obtains exactly the same milestones as shown

in the previous chapter. If cargo is transferred from plane to plane it is referred to as being transit cargo and

this also holds for cargo that is transported from plane to truck and truck to plane.

Before a truck arrives, the handling agent prepares & plans for handling and storage of the shipments

based on the confirmed bookings and handling instructions. Deliveries by truck can be made by local

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customers from The Netherlands or by customers from other outstations. Outstations are warehouses

positioned in other European countries and a few places in The Netherlands, which are used as collection

points for local customers. A booked route consists, in the case of delivered cargo at the outstations, of

multiple flight legs from origin to destination (e.g. Madrid-Amsterdam-New York). In this example, the

first leg from Madrid to Amsterdam is transported by truck and the second leg from Amsterdam to New

York is transported by aircraft. This scenario is shown in Figure 4.

Figure 4. Route from Madrid to Amsterdam (trucking) and from Amsterdam to New York (Flown). Red markers indicate origin

and destination, orange markers indicate alternative stops and grey dots indicate outstations.

Transit and export deliveries are processed a little bit differently at the SPL Hub. For local customers

from The Netherlands, KLM Cargo needs to ‘accept’ the goods. This is done by evaluating, amongst others,

weight, size and necessary documents of the shipment upon arrival. In this case, KLM Cargo operates as

the handling agent. The cargo from outstations is accepted by local third party handling agents at the

outstations and is transported by truck to Schiphol. The cargo transported from these outstations is, as

mentioned earlier, transit cargo.

Once the truck arrives on the agreed time, the documents need to be checked and the driver awaits

approval for unloading. After a suitable dock door is available to unload a new delivery, the truck is

appointed to a door. The shipments from the truck are evaluated against the booking on number of pieces,

weight and volume. The shipment is registered as received if all checks are approved and a message is sent

to the customer. The unloaded cargo is stored in the warehouse, store shipment documents are created and

a flight manifest is made. The cargo pieces are, after storage, gathered for the flight, according to the

booklist. The gathered goods for one single destination are built the ULD. The cargo is eventually

transported to the aircraft’s ramp some time in advance to the departure time. At the ramp, the cargo is

loaded on board of the aircraft.

Four main truck streams can be distinguished: trucks from outstations (2.2.1), local deliveries by freight

forwarders (2.2.2), trucks to the outstations (2.2.3) and local pick-up by freight forwarders (2.2.4). A

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detailed process description is given in the following sections. Appendix C – Truck streams at the SPL Hub

shows in a flow chart at which of the three stations of the SPL Hub a truck is handled.

2.2.1 Export cargo stream from outstations

Freight forwarders are the biggest clients for airlines in the air cargo industry. Forwarders collect their

freight from shippers and consolidate it at their warehouse. Typically, cargo volumes from shippers increase

until the end of the week due to production schedules of manufacturers and truck efficiency towards the

handling agent. Once a certain limit of collected cargo is reached at the forwarder’s warehouse, the cargo

will be transported to the handling agent of the airline.

KLM Cargo has third party handling agents at the outstations in Europe and The Netherlands that accept

the cargo. Throughout the week and mostly at the end of the week, cargo is transported by trucks booked

by KLM Cargo from the various outstations to the SPL Hub in Amsterdam. Trucks are scheduled on

outgoing flights with a scheduled connection time to the connecting flight of 5 hours i.e. truck should arrive

at least 5 hours in advance. The driving time is based on the distance between the outstation to the hub,

average driving speed and additional slack time. The load of the truck and the documentation, also known

as an Air Waybill (AWB), is checked on arrival whereupon the truck is sent to the docks to unload. The

AWB is a transport document which describes the details of the shipment. The truck load is sent either

directly to the break-up area or it is stored. This depends on the time left to departure and the type of ULD.

Some ULDs contain cargo for multiple destinations and are called mixed-pallets (M-ULD). Other ULDs

have cargo for a single destination and are called Through-pallets (T-ULD). M-ULDs need to be broken

down, sorted and build up for a single destination. T-ULDs are temporarily stored and are sent down from

the pallet system shortly before departure. These pallets arrive at Schiphol and contain only shipments for

a single destination. Finally the ULDs are transported by trolleys to the aircraft to be loaded. The process

is illustrated in Figure 5.

Client/Customer brings cargo to handling agent

Handling agent collects and accepts

cargo

3PL provider (RFS) transports the cargo

Cargo arrives at SPL hub

Cargo is unloaded

Cargo is directly transferred to

break-up area or stored

Cargo is broken down, sorted and build up on ULD or directly transferred

ULDs are transported to the

aircraft’s ramp

Figure 5. Flow chart transit cargo from outstations to SPL Hub

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The darker coloured process steps depicted in Figure 5 are shown in more detail in Figure 6. The truck

driver parks at one of the 17 parking spots before entering the hub terrain. The transit cargo from the

outstations could have already a secured status. If this is not the case, the cargo has to be checked before

entering the hub. The procedure to do so is called a ‘Remote Explosive Scent Tracing’ (REST) check, in

order to make sure no explosives are on board of the truck. Once the cargo has a secure status, the driver

has to proceed to the documentation office for document processing. After the documents are checked, the

truck is allowed to park on the hub’s terrain in front of the unloading doors for palletised cargo, also known

as Moving Truck Docks (MTDs). When an applicable unloading door becomes available, the truck

continues to this unloading spot and starts unloading. After unloading, the truck leaves via an exit gate. The

flow on the hub area is one-way. Appendix B – Truck arrival process, shows the truck arrival process in a

3D visualisation of the hub area.

Truck arrives and parks

Driver checks if REST

procedure is necessary

Cargo secured?

REST procedure

NO

Driver checks in at the

documentation office

YES

Driver is helped by

documentation clerk

Truck is assigned to parking spot

near the docks

When a door is available, the truck parks at the dock door

Truck unloadsTruck leaves

the hub

Figure 6. Flow chart truck arrival at SPL Hub (transit cargo from outstations)

2.2.2 Export cargo stream from (Dutch) forwarders

The process steps of the cargo stream from Dutch forwarders do not differ much from the transit cargo

stream. The main difference is that the arriving cargo needs to be ‘accepted’ on the SPL Hub. KLM Cargo

is in this case the handling agent in the supply chain. For transit cargo, the acceptance process is done at

the outstations by third party handling agents. The acceptance process requires additional checks on freight

documentation and, during unloading, on the physical cargo.

The doors used for export cargo mostly differ from the doors used for transit cargo, because of the way

the cargo is delivered. Export cargo is mainly delivered as ‘loose’ cargo, instead of palletised cargo. This

difference results in different door usage of these two streams. Although export cargo is overwhelmingly

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non-palletised, it might occur that clients do have palletised cargo. In this case, export trucks are unloaded

at the same docks as trucks with transit cargo.

2.2.3 Import cargo stream to outstations

The import stream to the outstations at the SPL Hub works in the opposite direction of the export

stream. ULDs are transported from the inbound aircraft to the hub. On arrival, the pallets are broken down

and sorted on a single destination. Around 50 percent of the arriving cargo has a final destination in The

Netherlands and the other 50 percent of the incoming cargo is transported via booked trucks to the

outstations in Europe.

Import trucks have to pass the documentation office at the hub to do a document check, whereupon the

truck is appointed to a parking spot in front of the import freight building doors. Once a dock is available,

the truck will be loaded on EHS (European Handling System) doors. EHS doors are just like the MTD

doors at the export freight building, just for palletised cargo. After the truck loading is finished, the truck

leaves the hub via an exit gate.

2.2.4 Import cargo stream to local freight forwarders

Another import stream can be identified. In this case cargo is picked up by local freight forwarders

around Amsterdam. This other 50 percent of all import cargo is handled through freight building 1 and is

very similar to 2.2.3, but now the cargo is mostly loose and not palletised.

2.2.5 Similarities and differences between cargo streams on the hub

To be able to decide on the scope of this research project, it is important to picture the similarities and

differences of the converging processes at the hub (Appendix C – Truck streams at the SPL Hub). All

arriving trucks have to park at the entrance gate. In some cases, export and transit trucks need an additional

REST check to secure the cargo.

All truck drivers have to perform a documentation check, but the duration and process steps at the

documentation office might differ. At the moment, there are no official dedicated desks for certain arrival

streams. Despite this, information from observations show that export documentation handling and transit

documentation handling are processed separately by different employees. Truck drivers are served on a

FCFS basis.

After the documents are checked and approved, the trucks are allowed to continue to the applicable

freight building. Usually, transit trucks are unloaded at freight building 3 on MTD docks, but results from

interviews with managers reveal that, as an exception, it might occur that transit trucks are unloaded on

EHS docks during peak-hours. However, preliminary data analysis showed that only a small number of

trucks are unloaded at the EHS docks. The local export truck stream is directed to freight building 3 where

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the trucks are unloaded on dock doors for loose cargo. The majority of the export trucks only carry loose

goods. Some forwarders already palletise the freight, which should be unloaded on the MTD doors for

unloading palletised cargo.

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3. Research outline

3.1 Problem definition

The core business of KLM Cargo is to transport shipments, which are accepted by third party handling

agents at outstations or locally by KLM Cargo, on time. The indicator of on time performance is the Flown

as Planned KPI. Interviews with directors of the sales department reveal that a one percent change in FAP

can result in a yearly increase/decrease of several millions1 in revenues. Therefore, improving this KPI has

a high priority for KLM Cargo. The main causes for a decrease in FAP are shown in Appendix D – Cause

and effect diagram and are elaborated upon the sections below.

Data is gathered on the reasons of rebooking cargo on a different flight than actually planned. These

causes for rebooking, obtained from a data analysis on more than 6600 rebooked shipments, originate from

different problem areas. The reasons given cannot always be interpreted as the root cause, so further analysis

is necessary. The main exception messages are shown in Figure 7. The percentages could be misleading

because of the possibility of one reason having multiple root causes. Nevertheless, these exception

messages are used to communicate discrepancies to other supply chain players. The reason for the

rebooking is noted by a manual entry by the employee who actually made the rebooking. This could be a

cargo planner or a person from revenue management. Interviews with project managers reveal that the noted

reason might deviate because of a conflict of interest.

Figure 7. Main exception messages on rebooked shipments (data Cargo IQ. 2016: Dec; 2017: Jan & Feb)

1 This number is based on a comparison of the FAP performance of Air France Cargo and the FAP performance of KLM Cargo,

and the differences in yield. In this calculation, 20 points of FAP increase results in 60 million euro more revenues.

8%1,04%1,07%1,19%1,43%1,47%1,79%1,86%

3,74%3,77%

5,82%6,69%6,95%

7,43%9,26%9,37%

10,72%18,16%

Other causes

Incorrect buildup

Volume/Weight/Dims deviation

Lack of ULD or build up material

Rebooked/Reassigned in previous station

Flight cancelledBooked connection too short

Delayed truck departure due to late truck arrival (roundtrip)

Delayed flight departure

Location error/cargo not found

Delayed truck arrival

Payload issue (wgt/balance/fuel/baggage/aircraft change)

Buildup planning discrepancy

Rebooked/Reassigned due flight capacity constraints

Rebooked due capacity constraints (priority setting)

Delayed warehouse handling

Unexpected backlog (repair)

Breakdown planning discrepancy

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Three problem areas can be identified which lead to a decrease in FAP: the warehouse processes at the

SPL Hub (3.1.1), the outstation processes (3.1.2) and the processes between the outstations and truck

unloading at the SPL Hub (3.1.3).

3.1.1 Causes from the warehouse processes

A lower than 100 percent FAP may arise from various causes. The major rebooking causes shown in

Figure 7, originate from inadequate warehouse operations, including planning of pallet break-down and

build-up. Planning discrepancies can be a result of many other causes, more than shown in the full cause

and effect diagram, such as earlier delays in the process.

One of the causes could be that the breaking down process in the warehouse started too late, which

resulted in a delay at the build-up stage. As a result, the cargo was not completed in time, to be transported

to the airplane. According to KLM managers and warehouse personnel, one of the key issues is that

workforce is not tuned to the amount of work that has to be done at a certain moment (Figure 8). This has

been revealed from interviews with not only managers, but also personnel working inside of the warehouse.

Workforce is planned on historical data from the year before, but recent months are a lot busier than last

years around this time2. This way of planning results in understaffing during busy moments at break-down,

transport and build-up. One can imagine that a capacity issue on workforce will result in congestion during

flight departure peak-hours. This congestion at the break-down stage will limit the operations later on in

the process.

Understaffing is not only a result of inadequate planning. Multiple interviews showed that through

every division and department of KLM budget cuts were made. In practice, this resulted in the loss of a

large share of the workforce and reduced budgets for many departments. Permanent employees had to leave

and if replaced, they were replaced by cheaper temporary employees. Experienced warehouse personnel

claim that the problem is not just the lack of number of people, but also the lack of available knowledge of

flex workers.

Currently, several initiatives are running to cope with this problem area. In the past break-down and

build-up were different departments which did not match the amount of work. A few months of

reorganisation in the warehouse resulted in a merger of these two departments. Currently running projects

should improve the work performance of the warehouse processes.

2 Retrieved from http://www.luchtvaartnieuws.nl/nieuws/categorie/2/airlines/goed-begin-2017-voor-luchtvracht on 07-04-2017

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Low FAP KPICargo did not fly on planned flight

Cargo was not available for platform transportation

Break-down started too late

Not enough workforce

Limited workforce

Inadequate workforce planning

Through pallet was not available on time

Limited budget

Pallet was not presented on time

Pallet break-down planning discrepancy

Unexpected work/repairs on pallets

Rescheduled due to priority setting of other cargo

Build-up started too late

Pallet build-up planning discrepancy

Pallet was (temporarily) lost in the system

Lack of available build-up material

Volume, weight or dimension deviated from planned

Figure 8. Cause and effect (warehouse operations)

Workforce and operational problems inside the warehouse belong to one cause area which could result

in a delayed break-down of cargo. Another cause for a late break-down, is the unavailability of cargo at the

break-down deadline. Interviews with warehouse planners, which are responsible for the ULD break-down

schedule, show that planned ULDs cannot always be broken down because they are simply not yet present

in the Pallet Container Handling System (PCHS). Cargo which is unloaded too late at the docks, generally

results in a late break-down or in the case of a T-pallet in a late availability for platform transport. Since

this problem area is not within the scope of this research, further research is required on this part.

3.1.2 Causes from outstation processes

On the other end of the air carrier supply chain for transit cargo, is the handling agent at the outstation.

Although many causes are linked with operational planning concerning warehouse processes, cargo and

truck planning at the outstations seem to belong to another problem area.

The cargo from outstations is prepared and build on ULDs, ready to be picked-up by scheduled trucks.

One of the causes of a late truck arrival at the docks is a late truck arrival at the SPL Hub, which eventually

lead to a lower FAP. Trucks are scheduled with some additional (slack) time, but can have major delays

due to external factors such as weather, traffic jams or truck breakdowns. Another reason is that some of

the cargo that is loaded on the trucks at the outstations already has a planned connection time which is too

short whether the truck is on time or not. Finally, a reason for late truck arrivals at the hub is the late

departure at the outstations. These three causes for late truck arrivals at the hub are depicted in Figure 9.

Currently, a project is running to solve the issues at the outstations. This project should result in a better

planning of cargo on trucks (e.g. more T-pallets), enhanced truck schedules and shorter shipment

connection times.

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Earlier data analysis shows that 6 percent of all rebooked shipments is because of delayed trucks which

could potentially be more if the rebooking cause is noted as a planning discrepancy.

Low FAP KPICargo did not fly on planned flight

Cargo was not available for platform transportation

Break-down started too late

Through pallet was not available on time

Cargo was unloaded too lateTruck arrived too lateat the unloading dock

Truck arrived too lateat the hub

External factorsduring transport

Truck left outstationtoo late

Cargo loadedwhich has too short

connection time

Build-up started too late

Figure 9. Cause and effect (late truck arrivals)

3.1.3 Causes from terminal yard processes

Another case is that trucks arrive on time at the hub, but still unload their cargo too late at the docks

due to congestion during peak-hours (Figure 10). Interviewees claim that different truck flows arrive at the

same time during the week, which results in peaks (which will be verified in Chapter 5). Given the current

limited unload capacity at the SPL Hub and the arrival of trucks in peaks, congestion at unloading is

unavoidable. At Amsterdam Airport Schiphol, flights are scheduled to optimise the hub and spoke network.

This type of network optimisation results in closely arriving and departing airplanes. Truck schedules are

partly based on flight schedules to obtain the most connecting flights. Besides, the force of the market

causes a problem that is unavoidable. Market force is another reason why shipments arrive in peaks. Many

shippers want to clear out the warehouse just before the weekend, so the larger part of the weekly shipments

are delivered at handling companies on Fridays.

Low FAP KPICargo did not fly on planned flight

Cargo was not available for platform transportation

Break-down started too late

Through pallet was not available on time

Cargo was unloaded too lateTruck arrived too lateat the unloading dock

Congestion at the hub

Trucks arrive in peaks

Limited capacity at the hub

Transit trucks are scheduled in peaks

Multiple streams converge at process steps

Flights leave in peaks due to hub and spoke

Build-up started too late

Figure 10. Cause and effect (congestion at the hub)

The way how to deal with congestion at the hub during peak-hours is until now rarely investigated by

KLM Cargo. For this reason, this will be the scope of this research project.

3.2 Research scope

Interviews with department directors, department managers, project managers, project members, data

analysists, business analysists and cargo employees gave the first angle for this investigation. Completed

by own observations and data analysis, a research question and scope can be formulated.

The scope of the research project is determined to be the transit flow from the outstations to the SPL

Hub and specifically from departure at the outstation until unloading at the SPL Hub. This because of the

following reasons:

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The transit flow from European outstations contains around two-thirds of the total export flow at

the SPL Hub;

Currently, the Flown as Planned KPI at the SPL Hub is too low which is caused for a large part by

transit cargo;

Several projects along the supply chain try to enhance the transit process, but none focus on the

truck process at the Hub’s yard;

Optimised truck schedules and arrivals from outstations will always contain an amount of

uncertainty due to external factors. It is therefore important to be able to act on this;

Currently, trucks containing cargo that have a small connection time could possibly miss their

connection due to the current service policy during peak-hours;

The possible gain in the FAP by increasing the connection time one to two hours is approximately 1.4

percent. (Appendix E – Calculation increase in FAP)

From the preliminary data-analysis and interviews, it is revealed that increasing the connection time

will result in a higher FAP for shipments with a small connection time. In order to increase this connection

time within the scope of this research, it is necessary to decrease the throughput time for these shipments.

This research project give insights on the possible design options that KLM Cargo has, to decrease the

throughput time for shipments with short connection times.

3.3 Research questions

To get the scope clear a research question is defined. The main research question for this thesis project

is as follows:

Main research question

“What design options does KLM Cargo have to increase the FAP, by using truck sequencing

strategies with different levels of location information availability?”

Sub research questions

1. How is the current arrival process at the SPL Hub designed, which truck streams can be identified

and which internal and external stakeholders are involved?

The answer to this question will provide a clear view on the shipment processes between the outstations

of KLM Cargo and the SPL Hub. An analysis of all truck streams of the hub will show possible bottlenecks

of the process where multiple streams converge. All internal and external stakeholders are taken into

account and described to be able to change processes at a later stage.

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2. What is the performance of the current truck arrival process at the SPL Hub for transit cargo and

how can it be influenced?

To get a baseline of the process, the current performance is measured. This part will describe the current

SPL Hub KPIs, the current hub throughput time and truck arrival performances of the different truck

streams.

3. What sequencing strategies could be applied in order to increase the connection time of transit

cargo?

The current sequencing rule at the SPL Hub used to process arriving trucks is on a First Come First

Served (FCFS) basis. This strategy will be used as a baseline. Literature on operational scheduling for single

machine process shows that, depending on the management goal, different sequencing strategies could be

more beneficial than sequencing on a FCFS basis. The strategies often differ on flow time, earliness,

tardiness and number of tardy jobs. The following strategies are tested and used:

Earliest Due Date (EDD) – Trucks with the shortest connection time will be processed first.

Depending on the load of the truck, the connection time will be determined. This strategy can be

used if the goal is to minimise the maximum lateness of the shipments.

Shortest Processing Time (SPT) – Trucks with the shortest processing time will be scheduled

first. This strategy will only be useful if the processing times between trucks differ. This strategy

will result in the minimal mean throughput time.

Moore’s algorithm – Trucks are scheduled on an EDD basis, only now with a limitation on the

minimum due date. If the planned completion time of a truck is later than the due date, the shipment

with the largest processing time will be removed. This process will be iterative until the first batch

of trucks will have a planned completion time without tardiness. Moore’s algorithm will minimise

the total number of tardy jobs. A variation on this algorithm is used in this research.

All these strategies are limited with respect to the amount of constraints that are taken into account. In

the case of real life truck scheduling, additional constraints need to be added. This could for example be on

the type of cargo or on customer segment.

4. What is the effect size of the level of available information on truck locations?

Currently the exact location of a truck during the ride from an outstation to the SPL Hub is practically

unknown. In this research, three levels of information availability will be considered:

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Level 1 - Current: In the current situation at the SPL Hub, truck locations are only available once

the truck driver reports at the documentation desk. This level of information availability will serve

as a baseline. Only small system adjustments will be necessary in order to link this data to other

systems.

Level 2 - Gate: The next level, level 2, assumes that the location of the truck becomes available as

soon as the truck enters the pre-hub parking area. This information could be obtained by taking the

information from license plate scanners which are already installed and the information sent by the

outstations which indicate the truck its license plate.

Level 3 - GPS: The highest level of available information assumes that real time data on truck

locations is available. In this case, sequencing can take place in advance of the actual arrival of the

truck. This assumption is not unfeasible within a reasonable amount of time. Multiple showcases

in other industries are available, to show the feasibility of such solutions.

In total, ten scenarios are modelled each with a specific sequencing strategy and a level of available

information on the trucks location and carrying shipments (Table 1).

Table 1. Research scenarios varying on sequencing strategy and level of available information

Level of available information

Sequencing Strategy No information Gate entrance Truck GPS

First Come First Served Scenario A X X

Earliest Due Date Scenario B Scenario E Scenario H

Shortest Processing Time Scenario C Scenario F Scenario I

Moore’s Algorithm Scenario D Scenario G Scenario J

Two possible scenarios using FCFS, indicated by an ‘X’, are not taken into account in this research

project. The outcomes on the FAP will be the same no matter the level of information that is available. This

is because the sequence of trucks will remain equal in any FCFS scenario, so no improvement will be

obtained there.

The last part of the research contains a conclusion and answer on the main research question. The final

results will be used as input for the implementation solution.

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4. Literature review

The problem is believed to belong to two research areas: truck scheduling (4.1) and job scheduling

(4.2). An extensive amount of work has been done in both research areas, but only limited specifically for

air cargo. Because of that, other comparable industries are used to describe potential solution strategies.

4.1 Truck scheduling

The goal of truck scheduling is to obtain a feasible schedule for inbound and/or outbound trucks, with

an objective depending on managerial input (e.g. minimise total operation costs (Ou, Hsu, & Li, 2010)).

Feasibility is reached when all trucks are handled in time, in such a way that the scheduled cargo is loaded

on the appointed flight. Truck scheduling can be used to control the amount of arriving trucks at the terminal

and limit uncertainty, as to eventually optimise the assignment of trucks to the capacity constrained dock

doors.

4.1.1 Truck scheduling in an air cargo environment

The processes at an air cargo terminal are quite similar compared to an ordinary cross-docking facility,

but differ largely in the consequences for not meeting a deadline. Speeding up processes to get extra slack

time or more throughput is very desirable to the operational management. One way of gaining insights in

the processes is by doing simulation. This also holds for air cargo terminal operations.

Lee, Huang, Liu & Xu (2006) did a simulation study on the import flow of air cargo terminals. In the

model, different types of cargo are handled differently depending on the type of cargo.

Ou, Zhou & Li (2007) models, contrary to Lee et al. (2006), not only the import process at an air cargo

terminal, but also the export process.

An important way of reducing congestion at the hub is by lowering truck arrivals at peak-hours. Truck

scheduling seems to be a subject within the air cargo operations research area with little attention. Feng, Li

and Shen (2015) did a literature study on air cargo operations from the perspective of the airlines, the freight

forwarders and the service supply chain. The review shows that only two papers are written on truck

scheduling at air cargo terminals. The reason for this low number is not completely clear, but it could be

because of the similarities between air cargo terminals and cross-docking facilities.

Hall (2001) conducted the first research on truck scheduling at an air cargo terminal based on a project

with the objective being to create a real-time tool for scheduling trucks and the sorting process of the

packages. The designed tool can be used to see what the effects are of altering departure times to possible

starvation (low utilisation) or overloading the terminal system.

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A more recent study on truck scheduling performed by Ou et al. (2010), shows the potential benefits of

alternative approaches compared to the frequently used FCFS approach. The scheduling of the trucks will

only be based on the flight schedule of outbound (export) flights

4.1.2 Truck scheduling in crossdocking

The process at an air cargo hub facility is comparable to cross-docking in warehousing. On the one

hand inbound trucks from multiple origins enter the system with cargo for multiple destinations, which is

unloaded at inbound dock doors, whereafter the packages are sorted per destination, or temporarily stored,

and finally being loaded onto trucks via outbound dock doors (Konur & Golias, 2013).

To structure complex research fields like scheduling, Boysen et al. (2010) show classification schemes

of research papers based on a tuple notation, which can be found in machine scheduling and queuing

systems, project scheduling and assembly line balancing and sequencing. With additional attributes from

cross-docking, the conventional machine scheduling can be used for truck scheduling classification. Three

basic elements describe the truck scheduling problem noted as tuple [α|β|γ]. α represents door environment,

β stands for operational specifications, and γ represents the objectives.

4.1.3 Truck scheduling in container terminals

Container terminals are, just like air cargo terminals, struggling with the high amount of trucks that

arrive simultaneously at the terminal (Ambrosino & Caballini, 2014). Truck congestion issues at a container

terminal gate can be solved from two sides: improvement of supply and/or control on demand (Guan, 2009).

By physical expanding the terminal’s gate and the improvement in productivity of the gate, the supply of

the terminal is optimised. Managing and optimising the inflow of the system i.e. truck arrivals, is getting

control on the demand.

One of the major solutions for managing incoming trucks at container terminals is the application of a

Truck Appointment System (TAS) (Chen et al., 2016). In a TAS, the terminal operator gives trucking

companies the opportunity to choose arrival hours as they prefer within time windows. The total number of

bookings within a time window is based on historic data of preferences of companies, but is limited. This

should eventually result in a more spread out demand, as certain time windows will be blocked after a

number of reservations. The terminal operator has the goal to spread the truck arrivals, but wants to

minimise the deviation between a preferred time window and the assigned time window (Zehendner &

Feillet, 2014). Although the application of a TAS is not uncommon, the effects seem to be mixed (Chen et

al., 2016). Applying a TAS is easier said than done and involves a lot a factors which need to be taken into

account to make it a successful solution to terminal congestion. Morais & Lord (2006) did a study on the

impact of multiple container terminal solutions in order to reduce congestion, delays and emissions. In their

study they came to the conclusion that in order to have a successful TAS, it needs to be flexible. The most

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important factor of a successful TAS is the cooperation of many, or even better, all trucking companies.

The trucking companies have to make reservations in the available time slots and should respect these times.

One way of forcing trucking companies to make use of the TAS is to make it mandatory (Zehendner et al.,

2014), but the challenge then is how to act if a truck does not come on time i.e. handle disruptions in the

system.

Phan & Kim (2015) discuss a way of negotiating between trucking companies and terminal operators

to level truck arrivals during peak-hours. Another way of making it attractive to use certain time windows

is money i.e. time-varying pricing. Chen, Zhou and List (2011) extend on the research of road pricing and

use time-varying toll prices as an incentive for truckers to choose time windows that are cheaper and related

to less busy periods.

As stated earlier, spreading out the demand at terminals can seriously reduce congestion. Moving a part

of the demand during the truck arrival peak-hours has not been discussed before. Dekker, Van der Heide,

Van Asperen and Ypsilantis (2013) presented a Chassis Exchange Terminal (CET) concept that works

similar to an extended gate concept for container terminals. The extended concept relocates several

processes of a sea terminal to an inland terminal with excellent access for multiple transport means such as

trucks, trains and/or barges (Veenstra, Zuidwijk & Van Asperen, 2012).

4.2 Job scheduling

Incoming trucks with shipments can be seen as arriving jobs at a manufacturing process. Job scheduling

is a common way of optimising the process and is defined as:

“[…] is a decision-making process that is used on a regular basis in many manufacturing and services

industries. It deals with the allocation of resources to tasks over given time periods and its goal is to

optimise one or more objectives.” (Pinedo, 2008).

Three common sequencing strategies used are (Rajendran, 1999):

First in First Out (FIFO) / Arrival Time (AT): A job that entered the queue first, is chosen to be

processed. The FIFO rule is effective when the desire is to minimise the maximum throughput time

and variance of the throughput time.

Shortest Processing Time (SPT): Jobs with the shortest processing time are sequenced first. This

rule is commonly used and effective in order to minimise the mean throughput time and minimise

the average tardiness of jobs.

Earliest Due Date (EDD): This rule is applied often, because of its simplicity to implement and

understand. The EDD rule schedules jobs with the earliest due dates first. This rule is often applied

to minimise the maximum lateness of jobs.

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Ramasesh (1990) did a literature study on job scheduling and combined outcomes and conclusions on

the performance of different priority rules. One of the outcomes was that the SPT sequencing rule,

performed best for minimising mean flow time. With a high processor utilisation rate (90%), SPT is able

to minimise the number of tardy jobs compared to other strategies. Furthermore, different studies show that

SPT should minimise the number of tardy jobs better than a due date based priority rule such as EDD.

Rajendran (1999) showed that FIFO minimised the maximum flowtime, EDD minimises the maximum

tardiness and SPT minimised the average throughput time.

An algorithm designed to minimise the number of tardy jobs is Moore’s Algorithm designed by Moore

(1968). This priority rule orders a queue with an EDD strategy, but if a job is added to the queue and will

not be completed in time, the job with the highest processing time is removed and added to another queue.

This queue is ordered in an arbitrary way.

4.3 Truck scheduling and Job scheduling

Boysen et al. (2013) describe the truck scheduling problem with fixed outbound departures in cross-

docking terminals. A set of outbound trucks, including their departure time and dock position, is assumed

to be known in advance. The departure time of these outbound trucks is fixed. These outbound trucks can

be compared to scheduled flights which also have a fixed departure time that is known in advance. So the

problem is reduced to the set of inbound trucks that could be unloaded at a set of doors. Unloading a truck

can be compared to a job, and a dock door can be seen as a processor. By doing this, the problem can be

interpreted as a traditional scheduling problem with parallel processors, with the objective to minimise the

weighted number of late jobs. Each inbound truck could contain multiple shipments with different

destinations and due dates. So each job could have multiple due dates. A situation is considered in which

quite a few trucks are queuing up, since they often arrive overnight. The objective is to minimise the total

value of delayed shipments.

Boysen et al. (2017) study the truck scheduling problem at a postal distribution centre (DC). The authors

aim to increase the sorting performance at the DC by assigning feasible dock doors and processing interval

to inbound trucks. In this situation, trucks cannot be scheduled prior to their arrival time at the DC. These

arrival times are continuously updated based on GPS navigation system information of trucks which are

connected to the scheduling system of the DC. The usage of GPS-based information is in line with multiple

research scenarios in this thesis project.

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Part II

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5. Current process performance

As this is a data driven research project, it is necessary to perform a thorough data analysis on the

current state. Figures such as the current KPI performances, process throughput times and truck arrival rates

are depicted to gain sound insights on the current process performance and challenges for KLM Cargo.

These insights can be used later on to design, model and verify new solutions to increase KPIs.

As described above, three main truck streams can be identified each which their own performance

indicators: transit cargo from outstations to the SPL Hub (5.1), local deliveries from Dutch customers (5.2),

and finally the import streams towards the outstations (5.3) and local freight forwarders (5.4).

The data covers February, March, April, and May 2017. A greater period is covered, subject to

availability of the relevant data. The data is described in Appendix F – Data description and availability.

If not stated otherwise, statistical tests performed on the data are done by using a z-test for proportions,

as described in Appendix G – Statistical testing.

5.1 Current performance from outstations

Cargo originated from the European outstations covers a large amount of the total export cargo

transported through the SPL Hub. Although the local deliveries are growing yearly, approximately two-

thirds of all shipments still originate from outstations (Figure 11).

Figure 11. Total yearly percentages of export freight (measured by weight) transported from outstations or by local customers

Relevant performances on this large truck stream, are described in the following sections.

5.1.1 Flown as Planned (FAP)

The main concern at the SPL Hub, according to the interviewees, is that the Flown as Planned (FAP)

KPI is not necessarily low because of the late arrivals of trucks, but because of the inefficient processing of

arriving trucks. The FAP is an overall used milestone of the Cargo 2000 (relaunched as Cargo IQ)

programme initiated by the International Air Transport Association (IATA). Cargo IQ is a self-funded

standard by major airlines and freight forwarders with the objective to “implement processes, backed by

31% 35%

69% 65%

0%

20%

40%

60%

80%

100%

2015 2016

Local Outstations

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quality standards, which are measureable to improve the efficiency of air cargo”. Three main processes are

divided in multiple steps with milestones to inform subsequent parties in the supply chain. Export

forwarding is divided in 7 steps. Air transport and handling are also divided in 7 steps and import forwarding

in 5 steps.

2 milestones (ARR & DEP) are used on the truck routes to the SPL Hub to determine the KPIs:

Shipments on Time (SOT) and FAP. SOT indicates whether a shipment, transported by a truck, arrived on

time at the SPL Hub. The FAP indicates, as mentioned before, if a shipment left the SPL Hub on time. The

results of the two KPIs are depicted in Figure 12. The FAP value for on time shipments is significantly

higher than trucks that are not on time (p<0.01; n>10,000).

Figure 12. Shipments on Time (SOT) and shipments Flown as Planned (FAP)

One could assume that more connection time will eventually lead to a higher FAP value. To verify this

assumption, data is gathered on the rebooked shipments (not-FAP shipments) and the amount of connection

time that was left upon unloading (Figure 13). The percentage of FAP shipments that have only 0-2.5 hours

left until departure are removed due to the fact that the build-up team has to ‘close down’ the pallet building

stage at least 2.5 hours before departure. As of then, all the weights and sizes of the pallets have to be

briefed to the aircraft’s personnel in order to finish their aircraft load plan. The results show that the

maximum FAP value is at 82 percent, regardless of the connection time upon unloading. The overall FAP,

according to the earlier performed calculation (Appendix E – Calculation increase in FAP), is about 79.2%.

This figure deviates from the implicitly stated FAP in Figure 12, because the actual FAP value decreases

with high connection times as shown in Figure 13. However, the performed calculation assumes a non-

decreasing FAP probability for high connection times.

77% 69%

23% 31%

0%

20%

40%

60%

80%

100%

Shipment on Time Shipment not on Time

not-FAP

FAP

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Figure 13. Amount of rebooked shipments against the connection time in minutes of a shipment upon unloading

An explanation for the 20 percent FAP score for shipments with approximately 3 hours connection time

could be that these shipments are mainly on T-pallets, which require no extra work at the hub. The ratio T-

pallets and M-pallets is about 54% (T) against 46% (M). From interviews it is revealed that T-pallets require

less processing time than M-pallets which require at arrival around 5 hours of connection time.

Data fitting is applied to the data used on the current FAP performance with shipment connection time

x, by using a non-linear least squares method between the lowest (150) and highest actual data point (630).

The least squares method minimises the distance between the fitted line and the actual data points, by

minimising the sum of the squares of these distances. The reason for using the squared distances is because

of the possible negative distance between the actual and the fitted data. Minimisation results in a polynomial

function presented in Equation 1.

The final equation used to calculate the FAP, has a lower limit of 150 minutes, which is the final cut-

off time at the end of the warehouse process. Values between 150 and 600 minutes of connection time at

unloading are calculated by a second degree polynomial function. Assumed is that more connection time

will not result in a decrease of the FAP. The polynomial function is for that reason cut off at 600 minutes

and increases by 0.1% per minute until 630 minutes of connection time. An upper limit is reached at a FAP

probability of 83%.

Equation 1. Shipment FAP - current state

𝑆ℎ𝑖𝑝𝑚𝑒𝑛𝑡 𝐹𝐴𝑃(𝑥) =

{

0 𝒊𝒇 𝒙 < 𝟏𝟓𝟎,−1

249,345𝑥2 +

1

233𝑥 − 0.3254 𝒊𝒇 𝟏𝟓𝟎 < 𝒙 < 𝟔𝟎𝟎,

0.80 +(𝑥 − 600)

1000𝒊𝒇 𝟔𝟎𝟎 < 𝒙 < 𝟔𝟑𝟎,

0.83 𝒊𝒇 𝒙 > 𝟔𝟑𝟎

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

O.K

Rebooked

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Equation 1 is presented by the orange coloured graph in Figure 14. The ‘fitted line’ represents the fitted

polynomial function, used only for connection time values between 150 and 600. The actual data points,

obtained from historical data, are depicted by the blue coloured graph.

Figure 14. Fitted FAP equation of the current state

5.1.2 Shipment connection times

It is important to have insights on the amount of cargo that is arriving with short connection times,

because this will influence the average FAP value. Operational documents show that the connection times

differ per product. Three main products can be distinguished and can be delivered as loose cargo or on

ULDs. Table 2 shows the products regarding minimal connection times upon arrival. Around 89 percent of

the cargo products that are sold have an agreed transit connection time of five hours before departure. These

products differ on size and weight limits and may have different priority statuses. For this research, a

connection time of 5 hours will be used.

Table 2. Minimal shipment connection times for cargo products, shown as latest acceptance time before departure (Dep)

Product A Product B Other products

Loose Cargo Dep -1,5 hours Dep -3 hours Dep -5 hours

ULDs Dep -1,5 hours Dep -3 hours Dep -5 hours

% transit 2% 9% 89%

Figure 15 shows the daily distribution of all shipments on a certain day. The majority of the shipments

have connection times larger than 12 hours on arrival (± 68 percent). These shipments are called ‘cold

shipments’ and have a low priority for processing, due to their large connection times. Currently running

0%

20%

40%

60%

80%

100%

0 100 200 300 400 500 600 700

FAP

Connection time at unloading

Historical data Equation 1 Fitted line

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projects on outstations show a significant decrease in cargo with more than 12 hours of connection time,

during pilot periods (<40%).

Figure 15. Distribution of shipments' connection time on arrival

One should be careful with drawing conclusions like: “63 percent of the shipments are cold, so 63

percent of the trucks are cold”. One truck contains multiple shipments divided over multiple ULDs. The so

called temperature of the truck is determined by the shipment with the least connection time. For example,

when a truck transports 100 shipments equally divided over 4 pallets: 3 pallets contain solely shipments

with >12 hours connection time and 1 pallet containing 20 of the 25 shipments with a connection time of

>12 hours. The remaining 5 shipments determine the actual ‘temperature’ of the truck and the possibility

could occur that these shipments have only 3-5 hours connection time.

5.1.3 Throughput time

The remaining connection time inside the warehouse is a result of the remaining connection time at

arrival minus the throughput time at the hub’s truck area. Shipments arrived at the hub will have a higher

remaining connection time by minimising the throughput time. The truck throughput time in this data is

defined as the time between the first card scan made by the truck driver until gate exit.

From the described process steps for transit cargo, it can be derived that a REST check is optional.

Figure 16 shows the average truck throughput time over the week for a secure and a non-secure truck. A

non-secure truck has to do a REST check at arrival and spends on average 20 to 30 minutes longer on the

hub. The throughput times on Wednesdays, Thursdays and Fridays show minor deviation between the two.

However, during the weekends, trucks spend on average 20 to 25 minutes longer on the same route.

Mondays should be a favourable day for transit truckers, since Monday has the lowest throughput time.

0%

20%

40%

60%

80%

After STD 0-4 hrs beforeSTD

4-5 hrs beforeSTD

5-7 hrs beforeSTD

7-10 hrs beforeSTD

10-12 hrs beforeSTD

>12 hrs beforeSTD

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Figure 16. Truck throughput time at the hub (REST and NO REST)

Interviews with project managers at outstations claim that only 20 percent of the trucks are unsecure.

However, analysis on truck data shows other figures on the percentage of trucks that need to be checked.

Figure 17 shows that more than 50 percent of all incoming trucks need to be checked upon arrival. It also

shows that the relative and absolute amount of trucks that need additional security checks differs per market

region.

Figure 17. Percentage of trucks that need a REST check upon arrival. Divided per market region.

Hourly basis differences appear when zooming in on the truck throughput times for secured trucks

(Figure 18). A preliminary conclusion can be made that the throughput time increases during the peak-

hours at the hub, due to congestion and longer waiting times.

Figure 18. Minimum, average and maximum truck throughput time at the hub (NO REST - hourly)

0

20

40

60

80

100

120

Sun Mon Tue Wed Thu Fri Sat

Ave

rage

TP

T (m

inu

tes)

NO REST

REST

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

Secure Unsecure

UK & IRELAND

NORDIC

ITALY & Switzerland

IBERIA

GERMANY & AUSTRIA

FRANCE

CENTRAL EUROPE

BENELUX

0100200300400500

0004081216200004081221010509131721010509131721010509131721010509131721010509131721

Sun Mon Tue Wed Thu Fri Sat

Min

ute

s

Min of TPT Average of TPT Max of TPT

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The possible gain in throughput time by prioritising trucks with a high throughput time would

approximately be one hour based on the difference between the minimum throughput time and the average

throughput time.

5.1.4 Truck arrival patterns

On average, each week 500 trucks arrive at the SPL hub from outstations in Europe (Figure 19).

Seasonality exists in the air cargo industry. Christmas, Easter, New Year, China’s New Year and summer

are all examples of seasonal influence on the amount of cargo transported throughout the world.

Figure 19. Actual truck arrivals at KLM Cargo SPL Hub per week (transit cargo)

The schedules of the transit trucks coming from the outstations are solely based on the flight

connections instead of based on the available capacity of the hub. Outgoing flights from Schiphol depart in

peaks because of the hub and spoke system that is mainly focussed on connection efficiency. The data on

scheduled truck arrivals confirms the expected peak patterns (Figure 20). On the night from Friday on

Saturday, many trucks are scheduled to arrive at the SPL Hub with the highest peak between 03:00-04:00

(24h). Saturday night on Sunday is the busiest night according to the schedule, with the highest peak of

1.70% of the total arriving trucks between 02:00-03:00 (24h). Mondays and Tuesdays contain the least

scheduled truck arrivals.

Figure 20. Scheduled truck arrivals at KLM Cargo SPL Hub (transit cargo)

0

100

200

300

400

500

600

201

6 -

w2

201

6 -

w4

201

6 -

w6

201

6 -

w8

201

6 -

w1

0

201

6 -

w1

2

201

6 -

w1

4

201

6 -

w1

6

201

6 -

w1

8

201

6 -

w2

0

201

6 -

w2

2

201

6 -

w2

4

201

6 -

w2

6

201

6 -

w2

8

201

6 -

w3

0

201

6 -

w3

2

201

6 -

w3

4

201

6 -

w3

6

201

6 -

w3

8

201

6 -

w4

0

201

6 -

w4

2

201

6 -

w4

4

201

6 -

w4

6

201

6 -

w4

8

201

6 -

w5

0

201

6 -

w5

2

201

7 -

w1

201

7 -

w3

201

7 -

w5

201

7 -

w7

201

7 -

w9

201

7 -

w1

1

201

7 -

w1

3

201

7 -

w1

5

201

7 -

w1

7

201

7 -

w1

9

201

7 -

w2

1

Arr

ived

tru

cks

0,00%

0,50%

1,00%

1,50%

2,00%

000408121620000408121721010509131721010509131721010509131822020610141822020610141822

Sun Mon Tue Wed Thu Fri Sat

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The pattern of the scheduled trucks is expected to be similar to the actual truck arrivals. Figure 21

shows that the actual truck arrivals are more levelled and smoothened compared to the scheduled trucks.

Mondays and Tuesdays are the quietest days of the week, so this is equivalent to the scheduled arrivals.

Wednesdays, Thursdays and Fridays are equally busy. Friday on Saturday nights are still the busiest

periods, but the difference between Friday night and Saturday night is a lot bigger with the actual arrivals

compared to the scheduled arrivals. This is a consequence of positive and negative truck arrival lateness.

Figure 21. Actual truck arrivals at KLM Cargo SPL Hub (transit cargo)

Although the number of scheduled trucks are every week more or less the same, the number of actual

arriving trucks per hour on a day vary a lot when analysing the data (Figure 22). This could mean that the

arrivals contain a lot of uncertainty which has a strong effect on the complexity of workforce planning at

the SPL Hub.

Figure 22. Minimum, average and maximum of actual truck arrivals per hour at KLM Cargo SPL Hub (transit cargo)

The difference between scheduled arrival times and actual arrival times should result in lateness. This

fact is supported by the observed data shown in Figure 23. Around 70 percent of the trucks arrive too early,

with 50 percent arriving more than 1 hour too early. 17 percent of the trucks arrive more than 1 hour too

late compared to the scheduled arrival time. 34 percent of the trucks arrive within a 1 hour window of the

scheduled arrival time.

0,00%

0,50%

1,00%

1,50%

2,00%

000408121620000408121623030711151923030711151923030711151923030711151923030711151923

Sun Mon Tue Wed Thu Fri Sat

0

5

10

15

00 04 08 12 16 20 00 04 08 12 19 23 03 07 11 15 19 23 03 07 11 15 19 23 03 07 11 15 19 23 03 07 11 15 19 23 03 07 11 15 19 23

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Minimum Average Maximum

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Figure 23. Lateness of trucks arriving at KLM Cargo SPL Hub

5.2 Truck arrivals from local customers (export)

Earlier research on export acceptance for cargo delivered by Dutch customers provides data on the

arrival of trucks of the export stream to the SPL Hub (Figure 24). During the weekend, truck arrival peaks

occur, with the highest peak occurring on Friday on Saturday night. This could be problematic as this is

also a busy period for the transit cargo export stream.

Waiting times for truck drivers at the documentation office will increase when peak-hours of both

streams occur simultaneously. So at the documentation process several streams converge.

Figure 24. Actual truck arrivals at KLM Cargo SPL Hub (export cargo)

Interviews revealed that sporadically, export trucks contain palletised cargo that needs to be unloaded

at one of the MTD doors. Because of this, it is assumed that only transit cargo is unloaded at the MTD

doors and export clients do not unload their cargo at these doors.

With respect to the workforce at freight building 3, management interviewees claimed that unloading

personnel is not dedicated to a certain unloading position. From interviews with operational personnel and

higher management, this suggestion is partly refuted. Personnel on the MTD equipment help others when

no trucks with transit cargo arrive for a certain period of time, but this does not happen the other way

around. Therefore, this research assumes that personnel at freight building 3 is dedicated to one arriving

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

Early (>3 hrs) Early (1-3 hrs) Early (0-1 hr) Late (0-1 hr) Late (1-3 hr) Late (>3 hr)

0

5

10

15

20

25

0 4 8 12 16 20 0 4 8 12 16 20 0 4 8 12 16 20 0 4 8 12 16 20 0 4 8 12 16 20 0 4 8 12 16 20 0 4 8 12 16 20

Sun Mon Tue Wed Thu Fri Sat

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stream when considering the transit cargo stream. For this reason, the export stream will be assumed to be

of no influence on the transit truck stream described herein.

5.3 Truck arrivals to outstations

Another important stream at the SPL Hub is the import stream of cargo into Europe. The arrival pattern

of import trucks is depicted in Figure 25. The main peak-hours of import arrivals are contrary to the export

streams on Sunday evenings and Sunday nights. From field research it is discovered that document clerks

working on transit arrivals, also have to process the arrivals of import trucks. This will be taken into account

when building the model. More elaborate observations were performed and interviews were conducted,

which have led to the assumption that the import stream of cargo is independent from other streams.

Figure 25. Actual truck arrivals at KLM Cargo SPL Hub (import cargo)

5.4 Truck arrivals from local customers (import)

Although the import stream is out of scope, because of the clear separation with the export transit

stream, it is useful to show the time of activity of this stream to substantiate this reasoning with data.

Figure 26 shows the cargo pick-up activity of local customers which is a part of the total import stream.

Every day of the week shows more or less the same arrival pattern, with afternoon peak-hours. This

confirms the separation of streams, because the export streams show peak-hours during the night.

Figure 26. Actual truck arrivals at KLM Cargo SPL Hub (local import cargo)

0

2

4

6

8

1 4 7 10 13 16 19 22 2 5 8 11 14 17 20 23 3 6 9 12 15 18 21 1 4 7 10 13 16 19 22 2 5 8 11 14 17 20 23 3 6 9 12 15 18 21 1 4 7 10 13 16 19 22

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

0,00%

0,20%

0,40%

0,60%

0,80%

1,00%

1,20%

000408121620000408121620000408121620000408121620000408121620000408121620000408121620

Sun Mon Tue Wed Thu Fri Sat

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Part III

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6. Experimental design and modelling

The design of a model is an iterative process which starts by formulating the problem of the current

situation (Law, 2007). Data is collected and a model is defined by verifying the made assumptions on the

process. Assumptions should be accepted by all problem owners and should be reasonable to make the

proposed model of any value i.e. creditable. After all the paperwork is done the actual model can be

programmed and verified, whereupon pilot runs can be made. After iteratively verifying and collecting the

right data on the model, design experiments can be created. Once created, production runs can be performed

in order to obtain data on possible future scenarios.

Multiple ways of performing a simulation study exist. The model type and software depends on the

researcher its wishes and the details of the problem that needs to be examined (6.1). The simulation model

needs to match the research scope (6.2) along with feasible assumptions on the process (6.3). A current

state model is created which is used as a baseline for further future designs (6.4). The model structure (6.5)

explains the interaction between multiple sub-processes. To be able to mimic a real-life situation, sub-

processes need the correct parameters which are described in 6.6. Historical data is used as an input to

simulate four months of truck handling at KLM Cargo (6.7). To show the accuracy and credibility of the

model, both verification (6.8) and validation (6.9) methods are used.

6.1 Model type and software

Model type

The used modelling method for this research is simulation. Simulation is a widely used method to model

complex systems. One of the many advantages is the allowance of estimating performance of an existing

system with predefined conditions (Law, 2007). Experimenting with real life cases are often impossible to

perform on a large scale. Alternative system designs can be compared more easily by performing a

simulation study on different key performance indicators set by problem owners. Furthermore,

experimental conditions can be better controlled and maintained during simulation runs. Possible failing of

the simulation modelling process could be a result of: lack of proper system data, wrong level of model

detail and misuse of modelling software.

For this research a discrete event simulation model is used where variables change instantaneously at

different points in time. The handling of the incoming air cargo trucks is comparable to a queueing system

with single or multiple machines. Two high level queues can be distinguished in the SPL Hub handling

process. The first queue in the system appears at the documentation office where a single operator handles

the paperwork of an incoming truck. The second queue is positioned right before unloading at the MTD

doors, which are represented by two processors in the system. The queueing process is discrete, since the

number of waiting entities change instantaneously by an integer number.

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The problem is modelled by a Mathematical model which is examined by simulation. The used model

is dynamic since it evolves over time. Although the real world is stochastic, for this particular study it is

decided that the model is deterministic, because the sequencing of trucks in the system will not be different

due to stochasticity in any scenario. This means that incidents like a flat tire, machine breakdowns or any

type of disruptions are not taken into account.

Simulation software

To perform the simulation ‘Enterprise Dynamics Developer edition version 8.2.5’ (ED8) is used which

is developed by INCONTROL. The required user license is provided by the TU/e. This modelling tool is

selected because of the earlier successful performed showcases (including at KLM Cargo), visual

presentation opportunities and programmable system pieces. In order to validate the model, it is important

that problem owners with less mathematical background can understand and verify the modelled process.

Using ED8 it is possible to implement mathematical formulas in the background and still give users a visual

representation (2D and 3D) of the system. Discontinuities can be easier detected than just looking at data

and intermediate insights can be found quicker.

A description and a basic model build in ED8 can be found in Appendix H – Enterprise dynamics 8.

6.2 Model properties

6.2.1 System boundaries

The research scope has been defined as and set to “..the export transit flow from the outstations to the

SPL Hub and specifically from departure at the outstation until unloading at the SPL Hub.”. In order to get

results within the scope of this research, the modelled system has to have equal boundaries. The only area

without prior research is the route from the outstations to the SPL Hub. There is no actual control on the

trucks modelled in the system and historical data is used on the arrivals of the trucks. Only at the scenarios

with the highest level of information availability, information on the trucks outside the SPL Hub is used.

For all cases applies that the process starts at the REST procedure, obtaining a visitors pass or at the

documentation office. The system end is set to the exit gate at the SPL Hub.

6.2.2 Model entities

The used entities in the system can be divided in four parts: Truck, Truck driver, Cargo and Shipment.

Not all attributes of the different used entities are taken into account and are for that reason on some points

simplified. However, attributes of the different entities that are necessary to fulfil the research objective,

are used in the model.

The ‘Truck’ entity contains in total four attributes, which are specified below:

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1. Truck ID – this attribute is used to identify a unique truck arrival and is for that reason a unique

value in the dataset. An example value for this attribute is: ‘KL8502 - 02-02-2017 00’ and is created

by ‘FLIGHT NUMBER – ARRIVAL DATE – ARRIVAL HOUR’;

2. Arrival time – the ‘Arrival time’ attribute is used as the inter arrival period in minutes between two

following trucks. The first truck in the dataset has a inter arrival time of 0 (zero) minutes. All inter

arrival times are non-negative integer numbers;

3. Arrival day – the ‘Arrival day’ of a truck is used to keep hold of the actual arrival day of the truck.

After the simulation it could become hard to exactly find out at which day a truck did arrive. The

value of this attribute is a three letter indication, for example ‘Mon’ to indicate Monday;

4. Security status – the final ‘Truck’ attribute contains information on the security status of the cargo

and is used to decide whether a truck needs to pass the REST procedure or not. This attribute is a

binary number which indicates an unsecure truck by a 1 and secure truck by a 0 (zero).

The second entity is the ‘Truck driver’ with only a single attribute:

1. Access card type – an attribute to indicate if the truck driver needs to get a visitors card in order to

access the hub area. A binary number indicates by a 1 that a truck driver first needs to obtain a

visitor card and by a 0 (zero) if the truck driver already has a valid access card.

Information on the cargo contained by a truck is modelled and described in the ‘Cargo’ entity with the

following two attributes:

1. Number of pallets – this attribute indicates the number of pallets carried by a truck with minimum

of 0 (zero) pallets and a maximum of 4 pallets containing only integer numbers. Trucks with zero

pallets contains only bulk cargo, but are processed alike other trucks only then with a significant

lower process time at the MTD doors;

2. Number of AWBs/shipments – the number of Airway Bills varies from 1 to 65 and are all integer

numbers. The number of AWBs is used for later calculations on the FAP.

The last entity that is used in the model is the ‘Shipments’ entity and has only one modelled attribute:

1. Connection time on arrival – each shipment has a connection time on arrival until departure of the

next flight. The time urgency (heat) of the truck is determined by the shortest connection time of

all shipments on the truck. This attribute can take any (negative) integer number. Negative

connection times indicate that a flight already left on arrival of the shipment at the SPL Hub.

Although three entities are modelled, the actual system only uses one entity with different labels

indicating attributes for all described entities.

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6.3 Model assumptions

In order to model a real life case, assumptions must be made. For this research project assumptions are

tested on reasonability by performing interviews with stakeholders and problem owners, and observations

on the process. Five areas can be identified where assumptions are made: (1) general: assumptions about

system operations and exceptions, (2) shipments: assumptions on the cargo contained by an arriving truck,

(3) process: assumptions on limitations in the process and process steps, (4) data: assumptions on the

availability of data and integrity of the input data, and (5) scenario specific assumptions: assumptions which

are made for specific scenarios.

The general assumptions are stated below:

Trucks are processed by the given sequencing strategy and do not deviate from the determined

route;

No pre-emption is allowed – i.e. no interruption of the unloading process;

Arrival times vary from the actual schedule. The process can only start after the truck is arrived;

Deadlines are set on the minimum connection time that a shipment has remaing at unloading, failing

this deadline results in a non-FAP;

There are no process down times at any stage in the system;

Independence of other incoming and outgoing truck streams;

KLM Cargo is able to extent the waiting time of incoming transit trucks without direct limitations;

Available entities are processed directly on arrival.

The additional assumptions are listed in Appendix I – Additional model assumptions.

6.4 Experimental setups

In total, 10 scenarios where tested to enhance the FAP. The first scenario is based on the current

handling strategy used at KLM Cargo. This scenario, scenario A, is used as a reference level of performance

to measure the performance increase or decrease of the future designs. As stated earlier in this report, the

scenarios differ on a combination between the level of information that is assumed to be available and the

sequencing strategy that is used.

6.4.1 Sequencing strategies

The most common sequencing strategy First Come First Served (FCFS) handles each arriving truck

based on arrival time, regardless the content of the truck. The deviation in throughput time between the

different trucks will be minimised by usage of this sequencing strategy (Rajendran, 1999). The throughput

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time for every shipment is more or less the same, because a FCFS strategy will not influence the sequence

based on any information except arrival time.

The sequencing strategy Earliest Due Date (EDD) reduces the maximum lateness of a job (Rajendran,

1999). In this scenario the shipment with the shortest connection time on a truck is used to sequence the

truck in a queue. The average throughput time will increase for trucks, because more trucks will have to

wait on trucks with a higher priority status than theirs.

The Shortest Processing Time (SPT) sequencing strategy reduces the average throughput time by giving

a truck a priority based on the number of pallets carried by that truck. The number of pallets determines the

unloading time which is in this the case the only variable process time. This way of sequencing could lower

the throughput time by a vast amount that could benefit short connecting shipments.

A variant on the algorithm of Moore and referred in this research as Moore’s algorithm, sequences

trucks based on due dates, but ‘removes’ shipments with a connection time lower than the cut-off time

minutes (4 hours + minimal required connection time). These shipments can be considered as already lost

on arrival. This because of the fact that a shipment should be unloaded 4 hours before departure time and

the required throughput time from arrival until unloading. In this case multiple shipment connection times

of a truck load are taken into account. The result of this strategy should minimise the number of tardy

shipments, but the average throughput time will increase. (Moore, 1968)

6.4.2 Information availability

No additional information available: Information on a truck load is obtained from the moment the truck

driver enters the process of cargo documentation checking. The sequencing process will, with this level of

information, start right after the documentation check.

Information on gate entrance: An assumption in this case is that the currently unavailable data from

the license plate scanner, becomes available for KLM Cargo. With this information it is possible to connect

the data from incoming trucks and expected cargo in order to sequence not after the documentation check

but before. Now trucks which are processed at the REST security check or at the security office to get a

visitor pass are taken into account during the sequencing process.

GPS information on truck locations: This level of information requires a significant investment on

technology implementation for KLM Cargo, but is not an uncommon business solution (Artemis, 2015).

Trucks now assumed to be ‘visible’ within a 60 minute range from the SPL Hub. This visibility means

information about: the arrival time, truck load, security status and type of access card. Queueing strategies

are now active before a truck enters the SPL Hub handling area.

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6.4.3 Scenarios

The different scenarios are stated below:

Scenario A – FCFS with no additional information: Current process handling situation of KLM Cargo.

Scenario B – EDD with no additional information;

Scenario C – SPT with no additional information;

Scenario D – Moore’s algorithm with no additional information;

Scenario E – EDD with information on gate entrance;

Scenario F – SPT with information on gate entrance;

Scenario G – Moore’s algorithm with information on gate entrance;

Scenario H – EDD with GPS information on truck positions;

Scenario I – SPT with GPS information on truck positions;

Scenario J – Moore’s algorithm with GPS information on truck positions.

6.5 Model structure

The chosen level of detail of the model determines the layout of the system its structure. The main

purpose of this research is to investigate the effect of different queueing strategies on the throughput time

of prioritised entities in the system. The level of detail is chosen based on the possibility to make required

changes on future designs. For example, the process steps of the job of a documentation clerk will not be

changed in future designs in this research but the overall process needs to be taken into account in order to

create queue before the documentation check. For that reason, the job of the documentation clerk,

performing a documentation check, is taken as a single process step in the model.

In the case of this model, two effective queues are used: (1) documentation waiting area and (2) parking

spots around the MTD doors. The first queue is connected to a limited multi-processor which imitates a

documentation office clerk. The second queue is connected to two single processors which represent the

unloading process at the MTD doors.

Section 6.5.1 shows the model basics which are used to simulate the arrival and handling process at the

SPL Hub. This model structure is used to perform a simulation run for the first three scenarios.

Since future designs cannot be modelled with exact the same structure, system components need to be

added or removed to reach the desired situation. Section 6.5.2 points out the system alterations which are

required in specific scenarios.

6.5.1 General model structure

The first three scenarios use the same system structure which consists of 21 atoms including additional

atoms to control the desired process. These are the scenarios containing no additional available information

compared to the current situation at the SPL Hub. Broadly the system structure contains:

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A source imitating entering trucks on the SPL Hub. This is the start of the process;

A multi-server to imitate the REST check for trucks with a positive (one) security status attribute;

A multi-server to imitate the obtainment of a trucker’s visitor pass for truck drivers with a positive

(one) Access card type attribute;

A queue to imitate the waiting area before documentation check;

A multi-server to imitate the documentation check procedure which is required for all truck drivers;

A queue to imitate the parking spots before entering the hub area;

A multi-server to imitate the required driving on the hub terrain from pre-hub parking spots to the

parking spots around the MTD doors;

A queue imitating the parking spots around the MTD doors;

Two single servers to imitate the unloading process of trucks at the MTD doors;

A sink functions as the exit of the SPL hub. This is the end of the process.

More details on the system structure regarding the first three scenarios can be found in Appendix J.1 –

General model structure.

6.5.2 Scenario model structure

Alterations to the general model structure had to be made in order to be able to model several future

design scenarios. Components were added or removed, but never at the expense of losing system logic or

quality. This was possible by adjusting the program code of several other components. A detailed overview

on the made adjustments for the scenarios: D, E, F, G, H, I and J can be found in Appendix J.2 – Scenario

specific model structure.

Algorithms used in Scenarios D, E, F, G, H, I and J all apply information on future events in the system.

The input data gives, amongst other things, information on entity routings through the system. The general

system structure includes, for verification and validation purposes, a process step which represents the

obtainment of a visitors pass. This also holds for the included process step ‘REST’ for securing an unsecured

truck. Because of the made assumptions on the information that is available on trucks, it is possible to take

the just discussed processes out. This simplifies the model to an extent that it is possible to queue trucks

with future information, without losing model quality.

The consequence of this application is that two multi-servers are removed from the general structure

and additional program code is added to other elements of the model.

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6.6 Model parameters

6.6.1 Current state parameters

The parameters of the model are set according to the assumptions that are made before the modelling

process started. Parameters like capacity, cycle time and queueing discipline are used on model elements

in order to create the desired behaviour. All model parameters used in the current state model (Scenario A)

are listed in Appendix K – Model parameters: current state. An important selection of the parameters is

listed below:

Source – ‘Input’:

(1) Takes the input value listed in the source file as minutes and recalculates this value to

seconds. This value is used as the inter-arrival time between two trucks.

(2) The number of products that will enter the system is set to 8000 based on the input data.

This value rounds the real number of trucks with just a few.

Queue – ‘Incoming truck’:

(1) The capacity of this queue is set to 120. This amount should be sufficient to satisfy the

assumption of unlimited queue size.

(2) The queueing discipline is, in accordance with the current state handle process, First In

First Out.

Multi-server – ‘Visitor’s pass’:

(1) The amount of entities which can be served at once is set to 10. An assumption is made

that the number of security personnel is ‘unlimited’, but the amount is limited to 10. This

should be enough to handle all incoming truck drivers which need a visitor pass.

(2) The cycle time of this process is set to 8 minutes.

Multi-server – ‘REST’:

(1) Also for the REST procedure, an unlimited amount of servers is assumed. For this server

the capacity is set to 10, which covers enough workforce to handle incoming trucks at any

moment.

(2) The cycle time of this process is set to 25 minutes.

Queue – ‘Doc office queue’:

(1) The parking spots before documentation is set to 17, like the real number of parking spots

at the SPL Hub.

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Multi-server – ‘Documentation check’:

(1) Only one employee is available at the documentation office to handle incoming trucks. The

capacity for this multi-server is set to 1.

(2) The cycle time of this process is set to 8 minutes.

Queue – ‘pre-hub queue’:

(1) The parking spots before documentation are assumed to be no limit to the solutions. The

value for this capacity is set to 17.

Multi-server – ‘Doc office to hub parking’:

(1) The amount of trucks driving from the documentation office to the parking spots in front

of the MTD doors is limited to 1 in order to limit the simultaneous movements.

(2) The cycle time of this process is set to 7 minutes.

Queue – ‘Hub parking’:

(1) The maximum number of available parking spots is limited to 8.

(2) The first truck in the queue will be sent to MTD 1 first if available and otherwise to MTD

2 to unload.

Single processor – ‘MTD 1 / MTD 2’

(1) The setup time is set to 0 minutes.

(2) The cycle time depends on the number of ULDs carried by a truck. 15 minutes is counted

for the process before and after the unloading process. Additionally 3 minutes is added per

ULD. To handle zero ULDs, in the case of only loose cargo, a total processing time of 1

minute is counted.

The parameters are obtained, as shown in earlier sections of this report, by process data analysis,

observations, interviews and prior research done by others.

6.6.2 Future state parameters

Adjustments to codes are available in Appendix L – Model parameters: other scenarios. The main

adjustments are written down in the following sections.

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6.6.2.1 Scenario B

In Scenario B, the EDD rule is applied to the truck based on the due date of the shipment with the least

remaining connection time on arrival. The parameters differ on one system element, namely the queue right

after the documentation check (Pre-hub queue). The queueing discipline is adjusted to a two-step approach:

Step 1. Index the minimal shipment due date on a truck for all trucks available in the queue;

Step 2. Sort the queue in a non-decreasing order based on the indexed due dates.

6.6.2.2 Scenario C

Scenario C applies a SPT rule, which is based on the number of pallets on a truck. Also for this scenario

holds that only one system element is adjusted which is the ‘Pre-hub queue’. The queueing discipline of

this system element is changed to a two-step approach:

Step 1. Index the number of pallets contained by a truck, for all trucks available in the queue;

Step 2. Sort the queue in a non-decreasing order based on the indexed pallet quantities.

6.6.2.3 Scenario D

A variation on the algorithm of Moore is used in Scenario D. Also for this scenario holds that only one

system element is adjusted which is the ‘Pre-hub queue’. The queueing discipline of this system element is

changed to a four-step approach:

Step 1. Index the minimal shipment due date on a truck for all trucks available in the queue;

Step 2. For all trucks with due dates below cut-off time, if any, take the subsequent shipment on the

truck until the selected shipment exceeds cut-off time;

Step 3. Trucks containing only shipments with less than cut-off time on connection time are set to an

arbitrary due date of 99999;

Step 4. Sort the queue in a non-decreasing order based on the indexed due dates.

These cut-off times are based on: the warehouse cut-off time of 150 minutes before departure,

accumulated by 90 minutes required to break-down and build-up the pallets inside the warehouse and the

minimal required process time from arrival until unloading. This minimal required process time includes:

obtainment of visitors pass, security screening, documentation check, parking time and unloading time.

These times are all truck dependent. Shipments arriving with a smaller connection time than the cut-off time

are therefore seen as already lost shipments. The 90 minutes of warehouse process time is based on Mixed-

pallets, which are assumed to be the only pallets. Through-pallet shipments are still accounted for in later

final FAP calculations.

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6.6.2.4 Scenario E

The algorithm for this Scenario E becomes a bit more complex due to the future arrival information

that is available. This scenario uses an EDD sequencing strategy, only now with a higher level of

information available. The model parameters used for the REST check and visitors pass obtainment are

now incorporated in the ‘input’ source atom. The sequencing process starts now at entrance of the ‘incoming

trucks’ queue atom.

To control the output of the queue, a condition control system element is used. This is object is

necessary to hold not physically arrived trucks from entering the system and thus remaining in the queue.

The actual arrival time of an incoming truck i is a result of:

ai Queue arrival time of truck i

visti Processing time to obtain an access pass of truck i

resti Processing time for REST procedure for truck i

aai Actual arrival time of truck i

aai = ai + visti + resti

The truck can only leave the queue when:

Time > aai

During the simulation, dummy entities are used to flow through the queue every minute. These

dummies ensure that the statement on the condition control atom is reviewed every minute, otherwise the

statement is reviewed only when new arrivals enter the queue.

When new information becomes available, the following algorithm is used to find the desired position

in the queue:

Step 1. Index the shipment due dates of the trucks already in the queue and arriving truck;

Step 2. Find position i based on sorting on the shipments due dates in a non-decreasing order;

Step 3. Determine completion time if truck is set on position i;

Step 4. Determine completion time if truck is set on position j=i+1;

Step 5. If completion time of arriving truck is greater on position j than position i, finished; else i = j

and return to step 4.

6.6.2.5 Scenario F

The model parameters of Scenario F are quite similar to the model parameters of Scenario E (6.6.2.4).

The main difference is the sequencing strategy that is used, being SPT. Also now the queueing element

‘incoming trucks’ is changed on the queueing discipline which results in the following steps:

Step 1. Index the number of pallets on the trucks already in the queue and on the arriving truck;

Step 2. Find position i based on sorting on the indexed pallet quantities in a non-decreasing order;

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Step 3. Determine completion time if truck is set on position i;

Step 4. Determine completion time if truck is set on position j=i+1;

Step 5. If completion time of arriving truck is greater on position j than position i, finished; else i = j

and return to step 4.

6.6.2.6 Scenario G

Scenario G is an extension of Scenario D which sequences with the use of a variant on Moore’s

algorithm with limited information available. Now it is assumed that a higher level of information is

available. The structure and model parameters are quite like the parameters outlined in Scenario E (6.6.2.4),

but the queueing discipline differs on the ‘incoming trucks’ element. The algorithm steps are as follows:

Step 1. Index the shipment due dates of the trucks already in the queue and arriving truck;

Step 2. For all trucks with due dates below the cut-off time, if any, take the subsequent shipment on the

truck until the selected shipment exceeds the cut-off time;

Step 3. Trucks containing only shipments with less than cut-off time in minutes on connection time are

set to an arbitrary due date of 99999;

Step 4. Find position i based on sorting on the shipments due dates in a non-decreasing order;

Step 5. Determine completion time if truck is set on position i;

Step 6. Determine completion time if truck is set on position j=i+1;

Step 7. If completion time of arriving truck is greater on position j than position i, finished; else i = j

and return to step 6.

6.6.2.7 Scenario H, I and J

Scenario H, I and J apply the highest level of information available. In this case the condition control

on the output of the ‘incoming trucks’ queue remains, but the actual arrival time of a truck is changed. Now

the actual arrival time is extended with:

𝑖𝑛𝑓𝑜𝑡𝑖𝑚𝑒: 𝑡ℎ𝑒 𝑡𝑖𝑚𝑒 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑎𝑟𝑟𝑖𝑣𝑎𝑙 𝑎𝑡 𝑡ℎ𝑒 𝑔𝑎𝑡𝑒 𝑎𝑛𝑑 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛 𝑜𝑓 𝑎 𝑡𝑟𝑢𝑐𝑘

𝑎𝑎𝑖 = 𝑎𝑖 + 𝑣𝑖𝑠𝑡𝑖 + 𝑟𝑒𝑠𝑡𝑖 + 𝑖𝑛𝑓𝑜𝑡𝑖𝑚𝑒

The time period infotime is a constant and does not differ per truck. For all scenarios with this level of

information availability this figure is equal to 60 minutes. In this way it is possible to sequence over a larger

amount of trucks.

Scenario H applies the EDD rule with all algorithm steps like described for Scenario E (6.6.2.4).

Scenario I applies the SPT rule with the algorithm described for Scenario F (6.6.2.5). The final scenario,

Scenario J, applies the variant on the algorithm of Moore as described in 6.6.2.6.

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6.7 Input data

Recent historical data has been used as an input to run the simulations. Data have been gathered on the

months: February, March, April and May of 2017. After data cleaning, discovered was that in total 8000

trucks arrived during this period, which are all used as model input.

Inter-arrival time: the average inter-arrival time is given in minutes.

ULD pallets: In total, 19312 pallets were delivered to the SPL Hub. On average a truck contained 2.4

pallets.

REST: 4611 trucks were unsecure and need to be screened on arrival. This number is 57 percent of the

total number of trucks.

Visitor pass: 4110 truck drivers needed to get a visitor pass before they could proceed in the process.

This is just over 51 percent of the total number of passing truck drivers.

AWBs / Shipments: A truck load contains on average 9 shipments, which equals to about 72000

shipments during the given period.

Connection times: The connection time of a shipment is sorted ascending, so the shipment with the

least connection time is listed as shipment 1.

Essential to the model output are the input shipment connection times. From historical data, remaining

connection times are presented in Table 3.

Table 3. Remaining shipment connection time on arrival. Distribution of all data points.

Connection time <0 hrs 0 - 4 hrs 4 - 5 hrs 5 - 7 hrs 7 - 10 hrs 10 - 12 hrs >12 hrs

Shipments 1% 1% 1% 5% 14% 10% 68%

6.8 Model verification

6.8.1 External reviews

When writing code for a long period of time, it is possible that the programmer gets into a mental rut

(Law, 2007). To avoid mistakes, during this research project the code is reviewed at least once by an

external party. A walk-through of the sequencing strategy and the produced results gave more insights on

possible modelling errors.

6.8.2 Tracing

The final simulation model, especially for later design scenarios, has become quite complex. At the

start of building the model, the key functions were tested in a small version of the final model. With this

small system representation, it was possible to trace entities through the system. This was done by

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calculating the output variables by hand and compare these with the actual output variables. Any deviations

from the hand-calculations, assuming these were done right, indicate errors in the model.

ED8 provides a trace window where messages can be projected which are coded in the program. This

is used to show interim values of the entities in the system to check on the system’s validity.

6.8.3 Observing

A main benefit of visual simulation is the power to be able to watch the process go. For example, trucks

stuck longer than usual at a process can be identified easier and a bug in the programming code is found

earlier. This method of verifying the model is used quite some times during the modelling process.

6.9 Model validation

6.9.1 Extreme tests

The model was tested by increasing a few of the input variables to extreme values, to see if it would

function during extreme situations. The changes were made on the number of incoming trucks, amount of

AWBs on one truck, number of pallets on one truck and the range used on the GPS locations of trucks

(Table 4).

Table 4. Model validation: extreme value testing

Input Variable Original value

(OV)

Output

(OV)

Extreme value

(EV)

Output

(EV)

Number of incoming trucks 8000 8000 0 0

Amount of AWBs 1 to 65 1 to 65 0 0

Number of pallets 0 to 4 0 to 4 8 4 (max)

GPS range 0 0 240 240

If no proper inter-arrival times were set in the input data, inter-arrival times were taken as zero. This

resulted in a high amount of trucks. After adjustments on the maximum output on the source, the model

output was zero with zero input.

The number of pallets which can be contained by one truck has a maximum value of 4. A higher input

value than 4 as an input value will be set to 4.

The adjusted GPS range resulted in a longer queue which capacity was insufficient. Therefor the

capacity of the queue was increased.

6.9.2 Real life test

Another way of validating the model is by comparing real life data with the outcomes of the current

state model. The throughput time is a measure which can be used to identify differences between the actual

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process and the model process. On average, the modelled process takes 5 minutes longer than the actual

handling process at the SPL Hub (77 versus 82 minutes). Looking at a weekday level shows that the

throughput times only differ 2 to 3 minutes on average (Figure 27). Only Tuesday and Saturday show a gap

between the actual throughput time and the modelled throughput time. From interviews is revealed that a

lower value on Saturdays could be a result of two factors: (1) men claim to work harder on shifts which

require a higher workload, and (2) on some days an additional unloading location is used (EHS system)

which is actually meant for truck loading.

Figure 27. Actual throughput time and model throughput time

A second measure which could be used is the FAP value. The model shows a FAP of 78.13 percent.

The actual FAP is around 79.2 percent. So the difference is about 1 percent. Note that the actual FAP is a

calculated value also, and is based on the arrival connection time. So deviations are inevitable.

A small difference between the actual process and the modelled process can be neglected, because the

current state modelled process is used as a baseline for further comparisons on future designs.

0

50

100

150

Sun Mon Tue Wed Thu Fri Sat Weekaverage

TPT

(min

.)

Actual TPT Model TPT

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7. Results

The way KLM Cargo handles trucks today is simulated in a high level current state model. Four months

of historical data is used as input to this model, which leads to the results as described in 7.1. These baseline

results are used to compare results of future designs on the way how trucks potentially could be handled in

the future (7.2). The used input data and simulation outputs only have a predictable value to a certain extent,

because currently running projects will influence the supply chain. To be able to show the effects of possible

changes to the data, a sensitivity analysis is used (7.3).

7.1 Current state model results

Scenario A, the modelled current state at KLM Cargo, functions as a baseline to compare future designs.

Results on the throughput time of the model show similarity with the earlier described current performance

of the process (Figure 28). Trucks on Monday require the least throughput time on average, with a slight

increase for the following weekdays. The weekends show the recognisable pattern of high waiting times.

Figure 28. Average throughput time of the current state model

7.1.1 FAP calculation - option A

Earlier performed data analysis resulted in a piecewise function (Equation 1), fitted by using a non-

linear least squares method. This function is depicted in Figure 29. A lower limit is shown at 150 minutes

of connection time, because the ULD has to be ready for transport by then. From this point, a steady increase

in FAP probability can be noted until approximately 600 minutes before departure. Values greater than 600

minutes of connection time, do not influence the FAP probability due to inefficient warehouse processes.

This limits the FAP probability at around 83 percent.

0

20

40

60

80

100

120

140

Sun Mon Tue Wed Thu Fri Sat

TPT

(min

.)

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Figure 29. Fitted FAP equation of the current state

Using Equation 1, the current state model results in an average FAP value of 78.13 percent. Since the

number of truck arrivals differ a lot depending on the day of the week, it is useful to show difference in

FAP values a daily basis.

Figure 30. Average FAP results (day-to-day) of the current state model

Figure 30 shows varying results in respect of the average daily FAP values, where Tuesdays have the

highest FAP values and Sundays the lowest. The decrease in FAP values during the weekends can be

explained by the high throughput times due to high waiting times. Only the Mondays show a conspicuous

number. In this case the throughput time is quite low, which should result in high FAP values, but in reality

the FAP values are relatively low when compared to other weekdays. A possible explanation for this

number is that only 3 percent of all shipments arrive on Mondays, while on Saturdays 25 percent of all

shipments arrive. However, the number of shipments with low connection times is relatively high on

Mondays.

7.1.2 FAP calculation - option B

Using Equation 1 is one way to calculate the FAP value. An alternate approach is to set a minimum

value on the connection time of a shipment that has to be left before departure. This value would be the

result of the time needed for warehouse processing (90 minutes) and the cut-off time that is demanded by

0,00%

20,00%

40,00%

60,00%

80,00%

100,00%

0 100 200 300 400 500 600 700

FAP

pro

b.

Connection time at unloading

Equation 1

70,00%

72,00%

74,00%

76,00%

78,00%

80,00%

82,00%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

FAP

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flight operations (150 minutes), which results in 240 minutes. Shipments with more than 240 minutes of

connection time remaining at unloading, are assumed to be FAP and less than 240 minutes as losses.

Figure 31 shows all losses during the week, which totals at a number of 3062 losses (± 96% of all

shipments are unloaded on time). Among these losses are also losses which had zero connection time left

at arrival and could not be recovered in any way. These shipments can as such not be classified as potentials

for improvement.

Figure 31. All shipment losses with a cut-off time of 240 minutes at unloading

Shipments with more than 5 hours (300 min) on connection time left at arrival, are shipments which

have a high potential to be ‘saved’ by using sequencing strategies. A total of 1105 lost shipments have a

connection time of more than 5 hours left on arrival and have less than the cut-off time remaining at

unloading (Figure 32). The losses are mainly concentrated on Saturday morning and Sunday morning.

Figure 32. Shipment losses with a cut-off time of 240 minutes at unloading and more than 5 hours remaining on arrival

The amount of shipments that have a remaining connection time of 4 hours (240 minutes) on arrival,

and do not have a remaining connection time of 4 hours on unloading is equal to 1726. This is 56 percent

of all lost shipments and 2.4 percent of all 71654 shipments. If the minimum required processing time of

16 minutes (documentation check, driving and no pallets) is added to the 240 minutes, so a total of 256

minutes on arrival, a total of 1583 shipments remain. This is an indication of the maximum potential of

shipments which can be ‘saved’ by using sequencing strategies.

0

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Mo

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ay 1

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Preliminary conclusions

Results from the current state model indicate that 3062 shipments are not yet unloaded 4 hours (240

minutes) in advance of flight departure time. Approximately two-thirds these shipments have a connection

time of 5 hours or less on arrival. 1105 of the 3062 shipments have a larger connection time than 5 hours,

and are not unloaded 4 hours before departure. Furthermore, are these shipments heavily concentrated

around two or three weeknights. Due to this concentrated arrival of shipments with short connection times,

it will be challenging to create benefits by sequencing. This because of the fact that sequencing creates

additional waiting time on average, which enlarges the total throughput time of a truck.

A maximum of 1583 shipments can benefit truck sequencing strategies, because these shipments have

at least 4 hours of connection time remaining at arrival.

7.2 Future designs

The future process designs at KLM Cargo are based on frequently used job sequencing strategies

combined with a certain level of information that is available on the position of a truck. These future process

designs, scenarios, are modelled and compared to the current state model of the handling process at KLM

Cargo.

A common measure which is used to indicate the performance of a priority rule is the throughput time.

All the model scenario throughput times are shown in Figure 33. A significant difference in throughput

time can be noted between scenarios with no information and scenarios with a higher level of information

available (p<0.01; T = 16.47; n>8,000). A t-test is performed between Scenario B and Scenario E, which

have respectively averages of 87.8 and 113.5, and standard deviations of 64.8 and 124.0. Before the t-test

is performed, an F-test is performed to see if the variances are equal or not. This resulted in an F-value of

3.66, which is higher than the critical value of 1.04. So the variances are unequal. In this case a t-test with

unequal variances is applied.

Scenarios with a SPT sequencing strategy have relatively the lowest average throughput time. This

corresponds to the existing literature on SPT job priority rules (Ramasesh, 1990). An increase in the level

of information increases the throughput time for all sequencing strategies. This is a result of higher waiting

times, due to prioritising of trucks. The EDD rule results in the relatively highest throughput time, because

a larger number of low-connection time shipments are taken into account during the sequencing process

compared to Moore’s algorithm.

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Figure 33. Average throughput times for all scenarios

7.2.1 FAP calculation - option A

The key results for this research project are the potential FAP increases by using priority rules and a

certain degree of information. In Figure 34 the FAP results are presented for all scenarios. The results vary,

with FCFS as a baseline, between a daily average FAP percentage of -5.8% and +1.79%. The main FAP

differences are on the busy days, Saturday and Sunday (see Appendix M – Model results: FAP per day, for

a more detailed view). This makes sense because of the longer queues on these days which creates potential

to sequence. Remarkable are the relative low FAP values on the quietest day; Monday. This indicates that

a fairly big amount of shipments with a very short connection time arrive on Monday.

Figure 34. FAP for all scenarios

Multiple z-tests are performed on the total proportions of shipments which are indicated as FAP and

non-FAP (Table 5). All differences with the baseline scenario (A) are significant, except of Scenario C

which is not significantly lower than the current state. The proportions (Px) are the average FAP values of

the scenarios (x). The z-test scores are one-tailed and indicate whether a scenario has a higher/lower FAP

value than the baseline scenario, Scenario A.

87,0 87,8 85,4 87,7

113,5102,3

112,7126,1

114,8124,9

0

20

40

60

80

100

120

140TP

T (m

in.)

FCFS - no info (A)EDD - no info (B)SPT - no info (C)Moore - no info (D)EDD - gate info (E)SPT - gate info (F)Moore - gate info (G)EDD - GPS info (H)SPT - GPS info (I)

68,00%

70,00%

72,00%

74,00%

76,00%78,00%

80,00%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Average

FAP

FCFS - no info (A) EDD - no info (B) SPT - no info (C) Moore - no info (D) EDD - gate info (E)

SPT - gate info (F) Moore - gate info (G) EDD - GPS info (H) SPT - GPS info (I) Moore - GPS info (J)

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Table 5. Z-test results on FAP proportions of future designs (scenarios) compared to the current state proportion

Pa- Pb Pa- Pc Pa- Pd Pa- Pe Pa- Pf Pa- Pg Pa- Ph Pa- Pi Pa- Pj

Pa 78.13% 78.13% 78.13% 78.13% 78.13% 78.13% 78.13% 78.13% 78.13%

Px 78.54% 77.82% 78.53% 79.03% 75.60% 79.03% 79.03% 74.31% 79.02%

z-value -1.8837 1.4159 -1.8376 -4.1521 11.3557 -4.1521 -4.1521 16.9831 -4.1056

p-value 0.030 0.078 0.033 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01

All SPT scenarios perform worse than the current state situation, which can be explained by the fact

that this strategy does not include the connection time of a shipment. SPT lowers the average throughput

time of trucks, but this is apparently not that beneficial to the FAP. The FAP value continues to drop as the

level of information increases. An explanation for this is that SPT is not an effective sequencing method in

the first place (for these purposes), which results in prioritising the trucks in the wrong way. Gaining more

information on trucks only amplifies this negative effect.

Due date based job scheduling scenarios, such as Scenario B and Scenario D, increase the FAP value.

FAP increases of 0.41 percent can be noted for both Scenario B and Scenario D, which assume no additional

information on the location of trucks and only get visible to the system after the documentation check.

Scenarios E and G, which assume a higher level of information availability, increase the FAP value by

respectively 0.91 percent and 0.90 percent. This is a considerable increase in relation to Scenarios B and D.

This can be explained by the fact that a higher level of information that is available on the location of trucks,

result in a bigger queue. A bigger queue benefits the sequencing process, because more trucks can be taken

into account and more high priority trucks can be put in front of trucks with lower priorities.

Remarkable is that the highest level of information does not increase the FAP value anymore, so it

stagnates at an increase of 0.90 percent. Two explanations can be given for this stagnation: (1) a higher

throughput time due to increased waiting times and/or (2) the potential is reached. In the first case any FAP

benefits gained for one truck, results in more waiting time for another. This waiting time results in a lower

FAP value. In the second case, the potential is reached within the scope of this research. Although the

potential FAP increase is calculated before (Appendix E – Calculation increase in FAP), which equalled

1.6 percent, the practical FAP increase potential could be lower. The reason for this is that the previously

performed calculation did not take increased waiting times into account for other trucks, which would result

in a lower overall FAP value.

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7.2.2 FAP calculation - option B

As explained in Section 7.1, a deadline on the final unloading time for a shipment may be imposed.

This value should be set in that case to 4 hours before departure. Every shipment which does not meet that

deadline is counted as a lost shipment.

Figure 35 shows the number of lost shipments for every modelled scenario (the less the better). These

losses include shipments which have less than 5 hours connection time remaining on arrival.

SPT shows an increasing line of losses at an increase on the level of information. As showed in the

previous section, SPT is not an effective sequencing method. Gaining more information on trucks, only

amplifies this negative effect. SPT with the highest level of information more than doubled the number of

lost shipments (6633 vs. 3062).

Scenario J (Moore – GPS info) has the least shipment losses of all scenarios and, given that fact, the

highest performance of all scenarios. Scenario I, SPT – GPS info, scores worst of all scenarios, which is no

surprise considering the objective of the algorithm.

The due date scenarios show the same pattern as shown in the previous section. The lowest levels of

information availability already lowers the number of lost shipments and as the level of information

increases, the number of lost shipments decreases. A difference can be noted between EDD and Moore

based scenarios, where Moore scores better for every level of information availability. This can be

explained by the fact that Moore’s algorithm takes the minimum processing time on top of the 240 minute

deadline, while EDD algorithms also take already lost shipments on arrival during the sequencing process

into account.

The alternate FAP calculation shows a similar a stagnation of the decrease of lost shipments. Scenario

J lowers the amount of lost shipments by 1042. This is very close to the 1105 high potential shipments,

which were lost during the current state handling process and had more than 5 hours of connection time left

on arrival. So one could state that 94 percent of all high potential shipments were saved by making use of

Moore’s algorithm and the highest level of location information availability.

Figure 35. Lost shipments with unloading cut-off time

3062 26503361

26492104

5430

2056 2074

6633

2020

01000200030004000500060007000

FCFS - noinfo (A)

EDD - noinfo (B)

SPT - noinfo (C)

Moore -no info (D)

EDD - gateinfo (E)

SPT - gateinfo (F)

Moore -gate info

(G)

EDD - GPSinfo (H)

SPT - GPSinfo (I)

Moore -GPS info

(J)

Lost

sh

ipm

ents

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On average, more than 95 percent of all shipments are unloaded 4 hours before departure (Figure 36),

except of scenarios which are SPT based. The earlier trend can be recognised again, where the SPT

scenarios lose relatively and absolutely the most shipments. The power of this figure is the indication of the

potential which can be reached if further processes in the supply chain increase their efficiency. Of course

this decrease is not only due to the processes, but could also be a result of outdated transit times which are

used now.

Figure 36. Amount of on-time shipments with unloading cut-off time

7.3 Sensitivity analysis

During this research project, several third party initiatives have been pursued to enhance processes at

two problem areas (warehouse operations and outstation operations) which are out of the scope of this

research, but which will have an effect on the described scenarios from this study. A sensitivity analysis

show the effects of changes to the current operations, on the scenarios and models that are designed.

Section 7.3.1 shows the effect on the FAP values with the assumption of enhanced warehouse

processes. At the end of 2018, a large amount of outstations will use enhanced truck schedules and which

could result in more shipments with less connection time remaining on arrival. For this future scenario, data

input has been changed to show the possible effects (7.3.2).

7.3.1 Future warehouse processes

Due to several factors, it is not possible to get a FAP value of 100 percent. One of the problem owners indicate that the maximum

indicate that the maximum FAP performance is 94 percent due to three causes. 2 percent loss is caused by commercial decision

commercial decision making (overbooked shipments), 2 percent loss is due to internal factors such as aircraft technical failures

aircraft technical failures and 2 percent loss is caused by external factors (weather). The current running projects at the SPL

projects at the SPL Hub are to improve, among others, the handling of transit cargo at the warehouse. A future scenario is given,

future scenario is given, which assumes a higher warehouse performance and a maximum FAP value of 94 percent (

Figure 37).

The current state model results in a FAP value of 78.13%. A future scenario with enhanced warehouse

processes results in an average FAP value of 85 percent, which is a significant increase of almost 7

86,00%

88,00%

90,00%

92,00%

94,00%

96,00%

98,00%

FCFS - noinfo (A)

EDD - noinfo (B)

SPT - noinfo (C)

Moore -no info (D)

EDD - gateinfo (E)

SPT - gateinfo (F)

Moore -gate info

(G)

EDD - GPSinfo (H)

SPT - GPSinfo (I)

Moore -GPS info

(J)

Ship

men

ts u

nlo

aded

on

tim

e

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percentage point (p<0.01; n>50,000) from the current FAP value (Figure 38). This increase is no surprise,

due to the large amount of shipments with high connection times which benefit the increase of the increased

maximum FAP value.

Figure 37. FAP probability values with improved warehouse processes

The used equation for the future performance FAP probability function is shown in Equation 2. As

before, a left bound of 2.5 hours (150 minutes) on the equation is used. To fit the data points of the current

process for shipment connection times smaller than 10 hours (600 minutes), the earlier performed fit is

used. The maximum FAP probability value is 0.94 (94%).

Equation 2. Shipment FAP, with connection time x, with improved warehouse processes

𝑆ℎ𝑖𝑝𝑚𝑒𝑛𝑡 𝐹𝐴𝑃(𝑥) =

{

0 𝒊𝒇 𝒙 < 𝟏𝟓𝟎,−1

249,345𝑥2 +

1

233𝑥 − 0.3254 𝒊𝒇 𝟏𝟓𝟎 < 𝒙 < 𝟔𝟎𝟎,

0.80 +(𝑥 − 600)

1000𝒊𝒇 𝟔𝟎𝟎 < 𝒙 < 𝟕𝟒𝟎,

0.94 𝒊𝒇 𝒙 > 𝟕𝟒𝟎

Using the connection times of the modelled scenarios results in the FAP values shown in Figure 38.

Figure 38. FAP for all scenarios with improved warehouse processes

0%

20%

40%

60%

80%

100%

0 100 200 300 400 500 600 700 800

FAP

pro

b.

FAP (with improved warehouse)

70,00%

75,00%

80,00%

85,00%

90,00%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday Average

FAP

FCFS - no info (A) EDD - no info (B) SPT - no info (C) Moore - no info (D) EDD - gate info (E)

SPT - gate info (F) Moore - gate info (G) EDD - GPS info (H) SPT - GPS info (I) Moore - GPS info (J)

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On average, significant FAP value improvements are shown for all scenarios compared to the current

situation. This is due to the fact that most shipments have high connection time values on arrival (68%).

These shipments benefit from the increased maximum FAP value of 94 percent. The same improvements

are shown between scenarios (as in the previous section), although it slightly declined. This decrease is a

result of the higher FAP values for cold shipments, which drives the benefits down.

7.3.2 Improved outstation processes

At the outstations, initiatives are being pursued in respect of the truck load and truck schedule. A project

called European Green Fastlanes changes multiple truck loading and scheduling aspects, which could result

in a higher number of shipments with low connection times on arrival at the SPL Hub.

Historical data has been altered which results in a shift of shipment connection times from relatively

high shipment connection times to less connection time on arrival (Figure 39). In this case, a higher amount

(9% vs. 5%) of high potential shipments (5-7 hours of connection time on arrival) are arriving at the SPL

Hub.

Figure 39. Alternative input data due to future outstation processes.

Earlier results show that the SPT priority rule is not beneficial to the FAP. That is why for this part of

the sensitivity analysis, the SPT scenarios are left out.

Figure 40 shows the average FAP values of the different scenarios with the altered input data. On

average, all scenarios taken into account, a significant decrease in FAP value can be noted. The reason for

this is the higher number of shipments with lower connection times, lowers the overall FAP value.

The future scenarios show promising improvements compared to the current state model. At the lowest

information level, Scenario B and Scenario D improve the FAP value by respectively 0.57% and 0.58%.

An increase on the level of information that is available and the improvement is almost doubled (1.10%

and 1.14%). A further increase in information results in a decline in FAP values. This is caused by the

higher waiting times for other trucks, certainly in the case of EDD which focusses less on the higher

potential shipments.

0%

20%

40%

60%

80%

<0 hrs 0-4 hrs 5-7 hrs 7-10 hrs 10-12 hrs >12 hrs

historical data future data

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Figure 40. Average FAP values (sensitivity analysis: outstations)

A detailed view on the FAP values on a weekday level is shown in Figure 41. The values are calculated

by using Equation 1. The highest improvements in FAP are made during the weekends, where a maximum

improvement of 2.31% is gained by Scenario G (Moore – Gate Info) on Saturdays and a maximum FAP

improvement of 2.12% is gained by Scenario J (Moore – GPS Info) on Sundays. The reason why Scenario

G outperforms J on Saturdays could be because of the already high waiting time on Saturdays and an

increase in level of information would only increase the waiting time more. This is detrimental to other

shipments.

Figure 41. FAP values on a weekday level (sensitivity analysis: outstations)

Results from the alternative calculation method also show significant changes in the number of lost

shipments (Figure 42). An alternative calculation method is maintaining a deadline of 4 hours on shipment

connection time upon unloading, where losses are defined as shipments which do not meet this deadline.

Using the current state model results in a total of 3709 lost shipments, being an increase compared to

the original 3062 lost shipments. Similar to the other case, a vast amount of these lost shipments are

unloaded on time due to the use of effective sequencing strategies. Again, an increase in information

availability seems to benefit Moore’s algorithm and EDD based scenarios to a certain extent.

75,73%

76,30% 76,31%

76,83% 76,87%76,74% 76,84%

75,00%

75,50%

76,00%

76,50%

77,00%

FCFS - no info(A)

EDD - no info(B)

Moore - noinfo (D)

EDD - gate info(E)

Moore - gateinfo (G)

EDD - GPS info(H)

Moore - GPSinfo (J)

FAP

70,00%72,00%74,00%76,00%78,00%80,00%

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

FAP

FCFS - no info (A) EDD - no info (B) Moore - no info (D) EDD - gate info (E)

Moore - gate info (G) EDD - GPS info (H) Moore - GPS info (J)

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Figure 42. Lost shipments (sensitivity analysis: outstations)

7.4 Business implications

An increase in FAP could result in a large increase in revenue. One percentage point of FAP increase

should result in a yearly 3 million euros revenue increase (based on internal sources). The reasoning behind

this is a comparison between the business performances of KLM Cargo and Air France Cargo. A higher

service level will lead to customers becoming more accepting of a higher price. The calculation is based on

the yield from both parties and the difference in Delivered as Promised performance. The Delivered as

Promised is suggested to be highly correlated to the FAP.

The results of the future design scenarios, which have a job scheduling strategy based on due dates,

show an increase in FAP value. These results can be translated to financial numbers as is shown in Table

6. A first indication is given on the costs and complexity of the nine scenarios, as a business implementation

does unfortunately not only imply revenues. The nine different future scenarios each require a certain

amount of information that is available and a way to control truck streams at the SPL Hub. The main

investment costs can be broken down into the information system infrastructure and employee costs for

implementing the new system. Complexity involves the number of stakeholders that need to be taken into

account, size of required system links and the number of persons that need to be informed.

Scenarios B, C and D, each only require small system adjustments, since the information is already

available on the trucks at that stage and only needs to be presented in the right way. For example by putting

an LCD-screen inside of the documentation office to indicate the sequencing of trucks. The first three

scenarios can for that reason be seen as relatively inexpensive and easy to implement.

Scenarios that assume truck information becomes available upon gate entrance require more system

adjustments since the required system links are not yet in place, although the IT hardware is present.

Customs already scan license plates of trucks before entrance. These scans are currently not shared with

KLM Cargo. The complexity of these scenarios relates to the obtainment of a secure communication line

between Dutch Customs and KLM Cargo and the willingness of governmental parties.

3709

2933 2909

2345 2208 24132149

0

1000

2000

3000

4000

FCFS - no info(A)

EDD - no info(B)

Moore - no info(D)

EDD - gate info(E)

Moore - gateinfo (G)

EDD - GPS info(H)

Moore - GPSinfo (J)

Lost

sh

ipm

ents

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The last three scenarios assume the availability of real-time data on truck positions, even outside the

SPL Hub’s terrain. These scenarios most likely require involvement of third-party IT developers. Next to

the development costs, a GPS transmitter is required on every truck. The complexity of these scenarios lies

in the involvement of all trucking companies (15+) which need to participate in order to get all expected

benefits.

Table 6. Business implications for implementing the studied scenarios

Scenario B C D E F G H I J

FAP increase 0.41% -0.31% 0.40% 0.90% -2.53% 0.90% 0.90% -3.82% 0.89%

Rev. (M€) 1.23 -0.93 1.2 2.7 -7.59 2.7 2.7 -11.46 2.67

Costs + + + + + + +++ +++ +++

Complexity + + + ++ ++ ++ +++ +++ +++

The sensitivity analysis showed a significant increase of the FAP value when warehouse processes are

assumed to be optimised. Even the current truck handling procedures would result in a 7 percentage point

FAP increase. A quick and simple calculation would conclude a potential increase in revenues of € 21M.

Although the potential benefits of an improved warehouse are huge, one should not underestimate the

complexity of the SPL Hub’s warehouse and with that the complexity of possible solutions.

Another result from the sensitivity analysis is the relative increase of the FAP by using the sequencing

strategies in a case of a higher percentage short connecting shipments. Increases of more than 1.1 percent

FAP are obtained which can be quantified as € 3M of revenue increase each year. This scenario would only

strengthen the business case of the implementation of a dock & yard management system. However, this

scenario would also result in a strong decline in the overall FAP by approximately 2 percent.

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Part IV

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8. Discussion and conclusions

It can be concluded that KLM Cargo is currently underperforming for a number of reasons, which can

be located in three main problem areas. The first problem area relates to the poorly performing processes

at the outstations which function as the outer points of the hub-and-spoke model. Another problem area

concerns the processes at the hub’s warehouse, which is affected by the recently finalised reorganisation.

The area that remains underexposed may be formulated as the air cargo stream from the outstations towards

the SPL Hub by truck. Although this problem area historically received little research attention at KLM

Cargo, senior management argued that the disappointing hub performance is partly due to a lack of control

on the truck transit stream until unloading. The possible gain in throughput time by prioritising trucks would

be approximately one hour, based on the difference between the minimum throughput time and the average

throughput time. This research project has focused on the possibilities and opportunities arising when KLM

Cargo is able to control trucks on the hub and when KLM Cargo is able to anticipate on future arriving

trucks.

Four frequently applied job scheduling strategies are used in order to increase the overall FAP value. It

can be concluded upon the research results that the use of these strategies with additional information

available, result in a significant higher throughput time. Each successive step in level of information comes

with an increase of the average throughput time of 10 to 30 percent. The weekends show a recognisable

pattern of long waiting times, which lead to a higher throughput time. SPT based scenarios show the lowest

average throughput, while EDD based scenarios result in the highest average throughput time.

4 months of historical data is used as an input which results in an average FAP value of 78.13 in the

case of the current state handling method at KLM Cargo. The daily FAP averages vary over the week in

which Tuesdays show the highest values and Sundays the lowest. More than 4 percent of all shipments are

not unloaded 4 hours before departure, with one half of this percentage of all arriving shipments having

less than 4 hours connection time remaining before the departure, and are therefore considered to be lost

on arrival. The other half, the remaining 2.4 percent of all shipments which are lost shipments in the current

state consists of potential shipments which could be unloaded on time by using sequencing strategies. The

latter half includes shipments with a very short connection time on arrival of 4 to 5 hours (0.9 percent of all

shipments). 1.5 percent of all shipments, equal to 1105 shipments of the total amount of 72,000 shipments

in the used data set, are high potential shipments for this project.

Future design scenarios show clear differences between process time based algorithms and due date

based algorithms. The effect size of the strategies depends on the weekday. The greatest benefits can be

obtained on Saturdays and Sundays, because of the high truck arrival rate and the congestion that comes

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with it. All due date based algorithm show FAP improvements up to 1.79 percent on these busy days like

Saturdays and Sundays, while the other scenarios cause a decline of the FAP value of several percentages.

The overall FAP value is improved by +0.41% for both Scenario B (EDD – no info) and Scenario D

(Moore – no info), +0.91% and +0.90% for respectively Scenario E (EDD – gate info) and Scenario G

(Moore – gate info), and finally +0.90% for both Scenario H (EDD – GPS info) and Scenario J (Moore –

GPS info). It can be concluded that the level of information does influence the improvement of the FAP

value, but stagnates at a certain point.

Considering the number of shipments that are unloaded on time (4 hours before departure) as a FAP

measure, will result in a 95 percent score for the current state model. Improvements are shown for all due

date bases scenarios. As the level of information increases, the number of lost shipments decreases. This

holds for all scenarios except of the SPT based scenarios. Scenario J (Moore – GPS info) outperforms all

other scenarios and lowers the total amount of lost shipments by 1042, which is equal to saving 94% of all

high potential lost shipments.

A future scenario with enhanced warehouse processes results in an average FAP value of 85 percent,

which is a significant increase of almost 7 percentage point from the current FAP value. In a possible future

scenario which implicates a higher number of high potential shipments (9% vs. 5%), the overall FAP value

will drop by 2.5%. Nevertheless, the sequencing strategies will improve relatively more than with the non-

altered data set. The weekends will again gain the most benefit from the sequencing strategies with FAP

improvements up to 2.31 percent.

The business implications for the future designs result in a revenue increase of € 1.2M for the first two

due date based scenarios. An increase on the level of information that is available results in a revenue

increase of € 2.7M yearly.

The overall conclusion on this report is that EDD and Moore’s algorithm sequencing strategies are

beneficial for the FAP value, especially during peak-hours. An increase of the level of information amplifies

this positive effect to a certain extent due to the increasing waiting time that is involved with the level of

information. Although the amount of high potential shipments is limited, because the vast majority of the

cargo has a large connection time on arrival, it is showed that sequencing strategies are able to save 94%

of high potential lost shipments.

Advised to KLM Cargo is, based on the model results from this research project, to perform a follow-

up study on the financial consequences that are involved on the implementation of a truck sequencing

system. With that, it is advised to start investigate Scenario B (EDD – no info) and Scenario D (Moore –

no info) which require the lowest investment costs and are the least complex to implement. Furthermore,

advised is to rerun the model in the future, when process optimisations have been implement at outstations,

and new historical data is available.

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Additionally, two recommendations can be made based on the insights gained by this research project:

1. It is recommended to KLM Cargo to review the current transit times which are agreed with

customers. As shown in earlier data analysis, an increase in connection time significantly improves

the probability of a shipment’s FAP (quadratic on some points). It could be of great significance to

explore the pros and cons of an increase in the agreed transit time. The pros will concern the

reliability towards the customers (higher FAP), but the customers could dislike the urge to deliver

the cargo earlier.

2. It must be noted that the currently applied transit time of 5 hours on arrival is based on the former

hub layout and processes. From August 2016 the layout of the SPL Hub has been changed and the

REST procedure is added to the process. During interviews, it was revealed that the REST

procedure, in order to secure the freight, was not even accounted for in the first place. So the

additional throughput time of approximately 25 minutes is subtracted from the original 5 hours of

shipment connection time. As shown earlier, the effect of this additional processing time on high

potential shipments could give a significant decrease in FAP probability. The amount of unsecured

trucks is about 50 percent currently. It is recommended to KLM Cargo, if extension of the transit

time is no option, to look for possibilities to secure the freight already at the outstations more often.

Furthermore, it is advised to KLM Cargo to perform further research on a system that is able to control

the flow on the SPL Hub may enhance the FAP value, but could also shift exceptionally high value

shipments forward. These so called ‘monitoring shipments’ could save 1 to 2 hours on throughput time

during peak-hours. This increases the FAP probability by tens of percent for this shipment. Advised to

KLM Cargo is to perform a follow-up study which examines the costs and benefits of the implementation

of such a hub truck control system.

The proposed system will not only enhance the FAP of these shipments, but also increase the safety of

the hub area.

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Appendix A – Detailed air cargo process

Appendix A.1 – Forwarding at the origin

A shipment starts with a shipper that wants to transport freight from A to B. The shipper is responsible

for efficient assembly of the shipment to keep the transport costs as low as possible but also to avoid damage

along the way. This shipper sends in a request to a freight forwarder which will take over the responsibility

of arranging the shipping of the freight from origin until destination. The shipper gives several inputs as:

origin/destination, delivery dates, shipment details, shipper/consignee information and the required service

for shipping (IATA, 2016). This is known as a booking.

When the booking is made by a shipper at a forwarder, the shipper’s security status is checked whether

the shipper is a ‘known shipper’ or ‘unknown shipper’ (IATA, 2016). For security reasons, the shipper has

to be known to the forwarder. A shipper has to meet different requirements to become a ‘known shipper’.

After some additional information on custom statuses are received by the forwarder from the shipper,

the forwarder determines the destination airport, routing and selects the air carrier (IATA, 2016). The air

carrier has to confirm the requested capacity and after this is confirmed, the air carrier sends a BKD message

to the forwarder. An Airport-to-Airport Route map is created, which is a tool for supply chain parties to

monitor and control the shipment process (e.g. in Figure 43). A green milestone means that the shipment

has arrived on time or with some offset at that stage. Red indicates that a milestone has failed. For every

milestone, the planned time and the actual time are indicated.

Figure 43. Cargo IQ route map for one shipment showing the successful and unsuccessful milestones

Now that the booking procedure is complete, an appointment is made between the shipper and the

forwarder about the pick-up date and time of the cargo at the shipper (IATA, 2016). The cargo that is

picked-up by the forwarder is brought to the forwarders hub, sometimes via a branch facility, to be prepared

for export. A contract between shipper and freight forwarder is created and is called a House Airway Bill

(HAWB). This is also a proof of receipt between these two parties.

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Upon arrival (by truck) at the forwarder’s hub a security check is done on the physical integrity of the

truckload (IATA, 2016). Additional security measures could be applied when necessary (e.g. X-ray

screening). After the shipments obtain a validated security status, a Master Airway Bill (MAWB) is created.

A MAWB sets out the contract between the freight forwarder and the air carrier and is a proof of receipt.

Some forwarders do already consolidate and assembly cargo on Unit Loading Devices (ULD), also known

as pallets. Other forwarders deliver cargo without a pallet. Cargo is in that case referred as being ‘loose’

instead of ‘palletized’. Once the cargo is loaded onto the truck, a loading list is created with the actual

shipments that will be transferred to the carrier. Relevant information about the shipment is sent

electronically to the air carrier by a Freight Waybill (FWB). This subpart is illustrated in Figure 44. The

red line indicates the responsibility transition from shipper to forwarder.

The shipment is booked by the

shipper

Shipment is planned by the

forwarder

Shipment is picked-up at the shipper by the

forwarder

Shipment is transferred to

forwarder’s branch facility

BKD

Shipments are sorted & stored and prepared for transport

House Airway Bill (HAWB) is

created

Shipments are transported to the forwarder’s

hub

Shipments are prepared for

export

Master Airway Bill (MAWB) is

created

Shipments are brought to the

airline’s handling agent

by the forwarder

Shipment information is send to the air

carrier/handling agent FWB

Shipment arrives at the

handling agent

SHIPPER FORWARDER

Figure 44. Shipping: from shipper to the forwarder

Appendix A.2 – Air carrier origin activities

The cargo will be transported after all cargo preparations are finalized at the forwarder’s hub, to the air

carrier (IATA, 2016). The party that is responsible for the acceptance of goods is called a handling agent.

This handling agent role is either fulfilled by the air carrier or outsourced to a third party handling company.

The contract between the air carrier and handling agent, determines the level of service provided by the

handling agent.

Upon arrival at the carrier’s domain by truck, the loading list is checked. In some cases when the cargo

is consolidated on a ULD, the manifest of the ULD is checked also.

After the documents are ‘accepted’ by the air carrier, the truck can continue to an unloading dock

(IATA, 2016). The physical acceptance of the cargo gives the status to the shipment of Freight on Hand

(FOH). Unsecured freight has to be screened to obtain the secure status. Any discrepancies on number of

pieces, weight and dimensions are listed and communicated later to the forwarders. Further checks are

performed on the requirements concerning safety, security and customs clearance. When everything is

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approved the cargo is officially accepted by the air carrier and creates the milestone (RCS). This milestone

could also be presented as the latest acceptance time (LAT).

This subpart is illustrated in Figure 45. The red line indicates the responsibility transition from

forwarder to air carrier.

Shipment arrives from

forwarder’s hub at the air carrier’s

handling agent

Truck is checked on security

status

Truck is unloaded

Shipments are screened and checked on

ready for carriageFOH

Booking and actual delivery of shipments are validated

Handling agent accepts the shipments

RCS

FORWARDER AIR CARRIER

Figure 45. Shipping: from the forwarder to the air carrier

Appendix A.3 – Air carrier transport activities

Now that the cargo is unloaded, it is temporarily stored in the warehouse, brought to the break-down

area when palletized or brought to the build-up area. This warehouse process is coordinated by earlier made

allocations on shipments to flights. A Freight Booked List (FBL) determines which shipments need to be

picked and build upon ULDs at the build-up area for a single destination (IATA, 2016). After all ULDs are

finished for a single flight, a flight manifest is created with information on the weight and size of the ULDs.

The air carrier uses, amongst other documents, this manifest to create the aircraft load plan.

The ULDs are transported to the hold area where they await ramp transportation to the aircraft. When

the ramp transportation deadline is reached, the ULDs are brought to the aircraft parking position. The

cargo is loaded onto the aircraft as described in the final load plan and any discrepancies between the actual

load plan and the transported cargo are listed. Passenger aircrafts can take a relative small amount of cargo

under the passengers in the so called aircraft belly. Another option is transporting by a full freight aircraft

and in this case both the main deck and the belly are used to store cargo. Finally a hybrid of these two

options is air transportation of cargo by a combi aircraft where half the aircraft is filled with passengers and

the other half is filled with cargo.

Once discrepancies are resolved, the flight will depart and another Cargo IQ milestone is created: DEP.

An important KPI of the air carrier is calculated by the achievement or failure of this milestone. This KPI,

which will be explained later on, is used for communication purposes towards the customers on the air

carrier’s performance.

After the flight is departed, all necessary information on the cargo is distributed to the down line stations

and authorities at the destination airport. One of these messages is the Freight Forwarding Message (FFM)

which contains exactly the content of the on board ULDs.

At arrival, an arrival milestone is created: ARR. Now a mirrored process will occur. The cargo is

unloaded from the aircraft and is moved to the warehouse. After the shipments are received at the

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warehouse, an RCF milestone is created. Transit cargo will be stored in the warehouse and re-enter the

process at the described start of this paragraph.

The forwarder at the destination is being informed by a message that the cargo is ready to be picked-

up at the air carrier’s warehouse. A NFD message is in this case created and a certain time period later the

cargo will be picked-up by the forwarder.

This subpart is illustrated in Figure 46.

Shipments are accepted by the

air carrier’s handling agent

Shipments are sorted, stored and build on

ULDs

ULDs are transported to

the aircraft

ULDs are loaded on the aircraft

Aircraft departs from airport A

Aircraft arrives at airport B

ULDs are transported

from the aircraft to air carrier’s handling agent

DEP

ARR

Freight Forwarding

Message (FFM) is send to the

handling agentFFM

Handling agent receives the

ULDs

RCF

Shipments are sorted and

stored

A message is send to the

forwarder that shipments are ready for pick-

up

NFD

Forwarder arrives at the

handling agent

Figure 46. Shipping: handling agent and air carrier

Appendix A.4 – Forwarding at the destination

The arrived shipments are picked-up and brought by the forwarder to a forwarders hub. The milestone

of delivery is now created (DLV). From this hub the shipments are brought to a branch facility and from

there the shipments are delivered at the consignors. After the Proof of Delivery (POD) status has been

obtained, the cycle is finished.

This subpart is illustrated in Figure 47. The red lines indicate the responsibility transition from air

carrier to forwarder and from forwarder to consignor.

Shipments are ready for pick-up at air carrier’s handling

agent

Shipments are handed over to

forwarder

Shipments are transported to

forwarder’s hub

DLV

Shipments are checked and

discrepancies are resolved

Shipments are transported from

hub to branch facility

Shipments are delivered at the

consignor

POD

AIR CARRIER FORWARDER FORWARDER CONSIGNOR

Figure 47. Shipping: from air carrier to forwarder and from forwarder to the consignor

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Appendix B – Truck arrival process

Figure 48. Truck arrival process at the SPL Hub. (1) Truck enters the pre-entry area. (2) Truck parks and undergoes if applicable a REST procedure. (3) Truck driver proceeds to

the documentation office to perform a document check. (4) Truck driver returns to truck and enters the hub area. (5) Truck driver parks truck and awaits a free unloading dock. (6)

When the unloading door becomes available, the truck proceeds to the door and starts unloading. (7) The truck exits the hub area after the unloading process has finished.

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Appendix C – Truck streams at the SPL Hub

Import trucks

Export trucks

Transit trucksREST procedure

Truck parking Freight Building 2Import/Transit

Freight Building 3

MTD doorsExport/Transit

Loose cargo doors

EHS doors

Loose cargo doors

Import/Transit

Documentation

Export/Transit

Import/Export/Transit

Export/Transit

Truck parking

Export/Transit

Truck parking

Import

Freight Building 1

Import/Export

Truck parking

Air Mail - doors

Equation (parcels) -doors

Aerospace parts - doors

Animal hotel - doors

Figure 49. Truck arrival streams at SPL Hub

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Appendix D – Cause and effect diagram

Low FAP KPICargo did not fly on planned flight

Cargo was not available for platform transportation

Break-down started too late

Not enough workforce

Limited workforce

Inadequate workforce planning

Through pallet was not available on time

Cargo was unloaded too lateTruck arrived too lateat the unloading dock

Limited budget

Truck arrived too lateat the hub

External factorsduring transport

Truck left outstationtoo late

Cargo loadedwhich has too short

connection time

Congestion at the hub

Trucks arrive in peaks

Limited capacity at the hub

Transit trucks are scheduled in peaks

Multiple streams converge at process steps

Flights leave in peaks due to hub and spoke

Pallet was not presented on time

Pallet break-down planning discrepancy

Unexpected work/repairs on pallets

Rescheduled due to priority setting of other cargo

Build-up started too late

Rebooked due to flight capacity constraints

Pallet build-up planning discrepancy

Aircraft payload issue

Pallet was (temporarily) lost in the system

Delayed flight departure

Planned cargo had already too short connection

Flight was cancelledLack of available build-up material

Volume, weight or dimension deviated from planned

Figure 50. Full cause and effect diagram

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Appendix E – Calculation increase in FAP

Table 7. FAP by increasing connection time of shipments by approximately 1 to 2 hours. Connection time on arrival.

Current FAP

Shipment

connection time

After

STD 0-3 hrs 3-4 hrs 4-5 hrs 5-7 hrs 7-9 hrs

9-12

hrs >12 hrs

FAP prob. 0% 0% 37% 52% 70% 78% 81% 83%

Portion 1% 1% 1% 1% 4% 12% 12% 68%

subtotal 0.0% 0.0% 0.4% 0.5% 2.8% 9.4% 9.7% 56.4%

FAP 79.2%

FAP with one time window increase

Shipment

connection time

After

STD 0-3 hrs 3-4 hrs 4-5 hrs 5-7 hrs 7-9 hrs

9-12

hrs >12 hrs

FAP prob. 0% 37% 52% 70% 78% 81% 83% 83%

Portion 1% 1% 1% 1% 4% 12% 12% 68%

subtotal 0.0% 0.4% 0.5% 0.7% 3.1% 9.7% 10.0% 56.4%

FAP 80.8%

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Appendix F – Data description and availability

Multiple data sources are used to gain insights on the processes at KLM Cargo. A description on every data

source is given in the following sections. Data was available at least, for all data sources, on the months February,

March, April and May of 2017. These months are also used as an input to the designed simulation model.

SmartLoxs

SmartLoxs is a system which is introduced because of the managerial need for measuring the throughput

times on the SPL Hub’s terrain, to eventually be able to increase the efficiency. Besides this, SmartLoxs is used

to collect data on the trucker’s arrival times to measure on time performance of the different trucking companies.

In consultation with the trucking companies, it is agreed that the SmartLoxs data is leading on the actual arrival

times.

The data from the SmartLoxs system is created by the swipes made by the truck driver’s personal (EU or

ACN) or a visitor card. Every person on the SPL Hub is obliged to visibly wear a card which authorizes this

person to enter the hub’s terrain. The trucker’s card is used at different stages during the process:

1. REST – If applicable, a truck needs to be made secure by a REST check.

a. Card is scanned just before the REST procedure;

b. Card is scanned just after the REST procedure.

2. Documentation – Every truck driver has to pass the documentation office to make sure all applicable

documentation is correct.

a. Card is scanned before entering the documentation office;

b. Card is received by a documentation office employee, after some possible waiting time and scanned on

the SmartLoxs viewer. The truck’s flight number and scheduled arrival date are noted.

3. Gate IN – Truck enters the SPL Hub’s terrain.

a. Card is scanned just before truck entry.

4. MTD unloading – Transit cargo is often palletized and needs to be unloaded on the MTD docks.

a. Just before unloading at the MTD dock for palletized cargo, the card is scanned;

b. After the unloading process is finished, the card is scanned again.

5. Gate OUT – Truck leaves via the exit gate.

a. Card is scanned just before truck leaving the Hub’s terrain.

Cargo IQ

Information on the cargo journey and applicable information on the milestones are stored in the Air France –

KLM Cargo data warehouse. The relevant variables which can be used for this research are listed below:

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The Airway Bill (AWB) Number;

Information on the origin & destination of the shipment;

Flight date(s);

Cargo type;

Product (segment);

Special Handling Code;

ARR milestone + exception description;

RCS/RCF milestone + exception description;

DEP milestone + exception description.

Cargoal

Customers of Air France – KLM can make online bookings through a booking system called Cargoal.

Information on the shipment contains the following:

The Airway Bill (AWB) Number;

Information on the origin & destination of the shipment;

Flight date(s);

Cargo type;

Size and weight of the shipment; and

Number of package

CHAIN

CHAIN is the operational warehouse management system of KLM Cargo and contains information on the

handling process through the Hub’s warehouse. The available data from CHAIN is collected in KLM Cargo’s

SAP data warehouse. For this research, applicable information is available on:

Arriving flight number;

Arrival time at documentation;

ULD: type, height, weight, volume;

Shipment: AWB number, number of pieces, weight, volume;

Unload location.

CP Workflow

CP Workflow is used as a planning tool for network planners. Network planners are responsible for

scheduling and arranging trucks from outstations. Relevant information that is available on a flight:

Flight number;

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Flight departure date;

Departure and arrival station;

Required, estimated and actual departure time;

Required, estimated and actual arrival time;

Truck and trailer license plates.

Other data sources

SENSIT parking sensors

The 17 parking spots before the documentation office contain sensors which are able to detect vehicles and so

the occupancy of a parking spot. These sensors are also available at several unloading docks. Further data analysis

should give insights on the possible usability of this data. For example on the occupancy rate and the average

parking duration.

No one uses this system or data at the moment.

License plate scanner

At the entrance of the parking place before documentation, a license plate scanner is available for custom

purposes.

Freight Forwarding Message (FFM)

The FFM, also known as the flight manifest, is sent electronically at departure of the truck from the outstation

and provides information on the on board cargo.

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Appendix G – Statistical testing (z-test)

Many of the used statistical tests in this research project are proportions based. For example, the number of

shipments which are qualified to be positive Flown as Planned shipments or the number of shipments which are

unloaded on time as part of all shipments.

Because every case involves a larger sample size than 30 and often much larger (n>1000), the Central Limit

Theorem can be used to assume that the data is Normally distributed (Seber, 2013). To test H0 which states that

the first proportion is equal to the second proportion (p1 = p2), a Normal approximation can be used due to the

Central Limit Theorem. The following definitions are used:

pi Population proportion of i

p̂i Sample proportion of i

p̄ Weighted estimate

ni Sample size of i

xi Number of successes in sample i

This results in the following equation to calculate the z0-value:

𝑧0 = (p̂1 − p̂2)

√p̄ ∙ q̄ ⋅ (1𝑛1 +

1𝑛2)

where

p̂𝑖 = 𝑥𝑖𝑛𝑖 , p̄ =

𝑥1 + 𝑥2𝑛1 + 𝑛2

and q̄ = 1 − p̄

Tested:

H0: p1 = p2

H1: p1 ≠ p2

If z0 ≤ -1.96 or z0 ≥ 1.96 a significant difference is found. If z0 ≤ -1.645 or z0 ≥ 1.645 a proportion is

significantly greater or less than the other proportion. In the latter case the equal sign is replaced by a greater-

than or less-than sign.

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Appendix H – Enterprise dynamics 8

ED8 uses atoms to model the system entities and system components. A basic system representation is shown

in Figure 51. In this example, from left to right, the used system components are:

Product – a system entity, which is depicted by a box/pallet. This atom flows through the system via

the system components.

Source – a system component, indicated by ‘Input’. This atom is used to control the system arrivals.

Queue – a system component, indicated by ‘Queue’. The queue atom holds entities while the

processor is busy and can be used to implement sequencing strategies.

Server – a system component, indicated by ‘Processor’. The server atom represents for example a

machine which manipulates an entity. The entity is hold for a given fixed or variable time and can

become idle and busy. A single processor can hold only one entity at a time and is in this case feed

by the entities from the queue.

Sink – a system component, indicated by ‘Output’. Once the entities are completed they leave the

system via the system’s sink.

Figure 51. Basic queueing system in ED8 with 2D and 3D visual representation

ED8 comes with a large library of system components which are all programmable to the user’s wishes. Other

used atoms during the research will be explained later on in the report. To program all elements, ED8 uses the

programming language 4D Script.

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Appendix I – Additional model assumptions

Shipments

One truck can carry between 1 and 65 AWBs;

The number of ULDs contained by a truck varies between zero and four;

No rebookings are made on the shipments since the sent FFM;

Only mixed pallets are assumed with equal warehouse process times;

Process

Truck drivers do need an authorisation card in order to proceed in the system;

Drivers of unsecured trucks have always knowledge of the fact that the truck needs to be screened;

Only secured and screened trucks proceed to the documentation office;

All trucks need to pass the documentation office;

No extraordinary handling is required during the unload process;

Trucks carrying only bulk cargo (zero ULDs), are routed likewise;

The number of ULDs decide the variable component of the process time of the trucks;

Every truck first parks and require a fixed setup time before unloading;

After entering the hub area, the truck sequence remains as it is;

The maximum number of available MTD doors is two;

The MTD doors are dedicated and only used by incoming transit trucks;

Only one documentation employee is available to handle incoming trucks;

There are no limitations on parking spots;

There are no limitations on REST parking spots;

Truck driving speeds cannot be influenced;

Obtaining a visitors pass has no resource limitation at the security office.

Data

License plate information is available (on the FFM / booking) and can be obtained by the license plate

scanner;

Shipments on trucks indicated by the FFM are all the shipments a truck is carrying;

Arrival times obtained by SmartLoxs data can be used as actual arrival times.

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Scenario specific assumptions

Level 3 information – all strategies: information is available on the security status of a truck;

Level 3 information – all strategies: information is available on the requirement of a driver’s access

card;

Level 3 information – all strategies: GPS information is available on all trucks;

Level 3 information – all strategies: Arrival information obtained by the GPS tracker is accurate on the

minute.

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Appendix J – Model structure

Appendix J.1 – General model structure

Figure 52. General model structure of the ‘no-information’ scenarios. Top picture shows the complete model, middle picture shows the first half (zoomed) and the bottom picture

shows the second half (zoomed).

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Table 8. Atom connections and description of general model

Atom name Atom type Input channel(s) Central Channel Output channel(s)

Trucks Product (none) (none) Pre-hub entry

Input Source Trucks (none) Incoming trucks

Incoming trucks Queue (1) Input /

(2) One minute

Condition

Control_1

(1) Visitors pass /

(2) Total dummies

Visitors pass Multi server Incoming trucks (none) REST

REST Multi server Visitors pass (none) Doc office queue

Doc office queue Queue REST (none) Documentation check

Documentation check Multi server Doc office queue (none) Pre-hub queue

Pre-hub queue Queue Documentation check Condition

Control_2 Doc office to hub parking

Doc office to hub

parking Multi server Pre-hub queue (none) Hub parking

Hub parking Queue Doc office to hub parking Condition

Control_2

(1) MTD 1 /

(2) MTD 2

MTD 1 Single server Hub parking (none) Gate Out

MTD 2 Single server Hub parking (none) Gate Out

Gate Out Sink (1) MTD 1 /

(2) MTD 2 (none) (none)

Dummies Product (none) (none) One minute

One minute Single server Dummies (none) Incoming trucks

Total dummies Sink Incoming trucks (none) (none)

Condition Control_1 Condition

Control Incoming trucks (none) (none)

Condition Control_2 Condition

Control

(1) Pre-hub queue /

(2) Hub parking (none) (none)

Table Table (none) (none) (none)

Initialize Initialize (none) (none) (none)

Excel ActiveX Excel ActiveX (none) (none) (none)

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Appendix J.2 – Scenario specific model structure

Scenarios D, E, F, H, I and J – EDD and SPT with Level 2 and Level 3 information

Figure 53. Scenarios D, E, F, H, I and J - model structure. Red outline indicates difference from general model structure.

Table 9. Changes made to atom connections – General structure to Scenarios D, E, F, H, I and J.

Atom name Atom type Input channel(s) Central Channel Output channel(s)

Incoming trucks Queue (1) Input /

(2) one minute Condition Control_1

(1) Documentation check /

(2) total dummies

Documentation check Multi-server Incoming trucks (none) Pre-hub queue

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Appendix K – Model parameters: current state

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

If(ExcelActiveX_Read(Output(c),6)<0,SetLabel([connectiontime],-1,i),

SetLabel([connectiontime],ExcelActiveX_Read(Output(c),6),i)),

If(ExcelActiveX_Read(Output(c),3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c),3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c),4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c),5),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),25),i),

SetLabel([AAT],Time+InfoTime,i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Incoming trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline content(c)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit Do(

SetLabel([T1e],Time,i),

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SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i)

)

Atom name Settings/Triggers 4DScript

Visitors pass

Capacity 10

Cycletime (s) mins(8) *Label([VIST],i)

Input strategy openallic(c)

Send to 1

Trigger on entry SetLabel([T2b],Time,i)

Trigger on exit

Do(

SetLabel([T2e],Time,i),

SetLabel([dT2],Label([T2e],i)-Label([T2b],i),i)

)

Atom name Settings/Triggers 4DScript

REST

Capacity 10

Cycletime (s)

mins(25)*Label([REST],i)

Input strategy openallic(c)

Send to 1

Trigger on entry SetLabel([T3b],Time,i)

Trigger on exit

Do(

SetLabel([T3e],Time,i),

SetLabel([dT3],Label([T3e],i)-Label([T3b],i),i)

)

Atom name Settings/Triggers 4DScript

Doc office queue

Capacity 17

Send to 1

Queue discipline content(c)

Input strategy openallic(c)

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Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

Documentation check

Capacity 1

Cycletime (s) mins(8)

Input strategy openallic(c)

Send to 1

Trigger on entry SetLabel([T4b],Time,i)

Trigger on exit

Do(

SetLabel([T4e],Time,i),

SetLabel([dT4],Label([T4e],i)-Label([T4b],i),i)

)

Atom name Settings/Triggers 4DScript

Pre-hub queue

Capacity 17

Send to 1

Queue discipline content(c)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

Doc office to hub

parking

Capacity 1

Cycletime (s) mins(7)

Input strategy openallic(c)

Send to 1

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Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

Hub parking

Capacity 8

Send to Min(NrOC(c), NrOC(c) + 1 - IndexMatch(NrOC(c), 1, OCReady(NrOC(c) + 1 -

Count, c)))

Queue discipline content(c)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

MTD 1

Setup time (s) 0

Cycletime (s) If(Label([pallets],i)=0,mins(1),mins(15)+mins(3)*Label([pallets],i))

Input strategy openallic(c)

Send to 1

Trigger on entry SetLabel([tMTD1b], Time,i)

Trigger on exit

Do(

SetLabel([tMTD1e], Time,i),

SetLabel([tMTD1d], Label([tMTD1e],i)-Label([tMTD1b],i),i)

)

Trigger on end of

setup 0

Atom name Settings/Triggers 4DScript

MTD 2

Setup time (s) 0

Cycletime (s) If(Label([pallets],i)=0,mins(1),mins(15)+mins(3)*Label([pallets],i))

Input strategy openallic(c)

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Send to 1

Trigger on entry SetLabel([tMTD2b], Time,i)

Trigger on exit

Do(

SetLabel([tMTD2e], Time,i),

SetLabel([tMTD2d], Label([tMTD2e],i)-Label([tMTD2b],i),i)

)

Trigger on end of

setup 0

Atom name Settings/Triggers 4DScript

Gate out Trigger on entry

Do(

Cell(input(c)+1,1,Rank(1,Model)) := Label([number],i),

Cell(input(c)+1,2,Rank(1,Model)) := input(c)-Label([number],i),

Cell(input(c)+1,3,Rank(1,Model)) := Label([VIST],i),

Cell(input(c)+1,4,Rank(1,Model)) := Label([REST],i),

Cell(input(c)+1,5,Rank(1,Model)) := (Label([tMTD1d],i)+Label([tMTD2d],i))/60,

Cell(input(c)+1,6,Rank(1,Model)) := (Time-Label([T1b],i)-InfoTime)/60,

Cell(input(c)+1,7,Rank(1,Model)) := Label([connectiontime],i),

Cell(input(c)+1,8,Rank(1,Model)) := Label([connectiontime],i)- ((Time-

Label([T1b],i)-InfoTime)/60),

Cell(input(c)+1,9,Rank(1,Model)) := Label([arrivalday],i),

Cell(input(c)+1,10,Rank(1,Model)) := Label([TRUCKID],i)

)

Atom name Settings/Triggers 4DScript

Dummy

Inter-arrival time

(s) mins(1)

Time till first

product (s) 30

Number of

products -1

Send to 1

Trigger on exit

Do(

SetLabel([AAT],0,i),

SetLabel([dummy],1,i)

)

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Atom name Settings/Triggers 4DScript

One minute

Setup time (s) 0

Cycletime (s) mins(1)

Input strategy openallic(c)

Send to 1

Trigger on entry 0

Trigger on exit 0

Trigger on end of

setup 0

Atom name Settings/Triggers 4DScript

Total dummies Trigger on entry 0

Atom name Settings/Triggers 4DScript

Condition Control_1

Condition

expression

if(content(in(1,c))<1,1,

if(Label([AAT],first(in(1,c)))>Time,1,0)

)

Flow control on

True 0

User action on

True closeoutput(in(1,c))

User action on

False openoutput(in(1,c))

Atom name Settings/Triggers 4DScript

Condition Control_2

Condition

expression content(in(2,c))>=8

Flow control on

True 0

User action on

True closeoutput(in(1,c))

User action on

False openoutput(in(1,c))

Atom name Settings/Triggers 4DScript

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Initialize Initialize code

Do(

Cell(1,1,Rank(1,Model)) := [Position],

Cell(1,2,Rank(1,Model)) := [PositionDelta],

Cell(1,3,Rank(1,Model)) := [VIST],

Cell(1,4,Rank(1,Model)) := [REST],

Cell(1,5,Rank(1,Model)) := [MTDtime],

Cell(1,6,Rank(1,Model)) := [TPT],

Cell(1,7,Rank(1,Model)) := [Connectiontime],

Cell(1,8,Rank(1,Model)) := [RCFConnectiontime],

Cell(1,9,Rank(1,Model)) := [ArrivalDay],

Cell(1,10,Rank(1,Model)) := [TRUCKID]

)

Atom name Settings/Triggers 4DScript

Table Rows, Columns 8001, 15

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Appendix L – Model parameters: other scenarios

Appendix L.1 – Scenario B

Atom name Settings/Triggers 4DScript

Pre-hub queue

Capacity 17

Send to 1

Queue discipline t-findqueuepos([connectiontime],2)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

Condition Control_2

Condition

expression content(in(2,c))>=4

Flow control on

True 0

User action on

True closeoutput(in(1,c))

User action on

False openoutput(in(1,c))

Appendix L.2 – Scenario C

Atom name Settings/Triggers 4DScript

Pre-hub queue

Capacity 17

Send to 1

Queue discipline t-findqueuepos([pallets],2)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit 0

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Atom name Settings/Triggers 4DScript

Condition Control_2

Condition

expression content(in(2,c))>=4

Flow control on

True 0

User action on

True closeoutput(in(1,c))

User action on

False openoutput(in(1,c))

Appendix L.3 – Scenario D

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation

Do(

If(ExcelActiveX_Read(Output(c)+1,3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c)+1,3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c)+1,4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c)+1,5),i),

Dim([InfoTime],vbvalue,mins(0)),

Dim([cutOffTime],vbvalue,240 + Label([REST],i)*25 + Label([VIST],i)*8 + 8 +

7 + if(Label([pallets],i)=0,1,15 + Label([pallets],i)*3)),

var([lostAWBs],vbValue,0),

var([ColumnNr],vbValue,6),

var([connectiontime1],vbValue,ExcelActiveX_Read(Input(c),ColumnNr)),

While(AND(connectiontime1<cutOffTime, NOT(connectiontime1=0)),

Do(

Inc(ColumnNr),

connectiontime1 := ExcelActiveX_Read(Input(c),ColumnNr),

Inc(lostAWBs)

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)

),

SetLabel([LostAWBs],lostAWBs,i),

If(connectiontime1 =0,connectiontime1 :=

ExcelActiveX_Read(Input(c),If(ColumnNr=6,6,(ColumnNr-1)))),

If(connectiontime1<=cutOffTime,connectiontime1:=99999),

SetLabel([conTimeOnArr],connectiontime1 ,i),

SetLabel([connectiontime], Time + InfoTime + mins(connectiontime1), i)

)

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime,i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Pre-hub queue

Capacity 17

Send to 1

Queue discipline t-findqueuepos([pallets],2)

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit 0

Atom name Settings/Triggers 4DScript

Condition Control_2 Condition

expression content(in(2,c))>=4

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29

Flow control on

True 0

User action on

True closeoutput(in(1,c))

User action on

False openoutput(in(1,c))

Appendix L.4 – Scenario E

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation Dim([InfoTime],vbvalue,mins(0))

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([conTimeOnArr],ExcelActiveX_Read(Output(c),6),i),

If(ExcelActiveX_Read(Output(c),6)<0,SetLabel([connectiontime],-1,i),

SetLabel([connectiontime],Time + InfoTime +

mins(ExcelActiveX_Read(Output(c),6)),i)),

If(ExcelActiveX_Read(Output(c),3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c),3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c),4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c),5),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime + mins(8)*Label([VIST],i) +

mins(25)*Label([REST],i),i),

SetLabel([T1b],Time,i)

)

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30

Atom

name Settings/Triggers 4DScript

Incoming

trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline

if(Label([dummy],i)=1,0,

Do(

var([valRank], vbValue),

valRank := (t-findqueuepos([connectiontime],2)),

{CONSTANTS}

var([parking],vbConstant,mins(7)),

var([doccheck],vbConstant,mins(8)),

var([MTD1ready],vbValue,0),

var([MTD2ready],vbValue,0),

var([DOCCHECKready],vbValue,0),

var([valCounter],vbvalue,5),

{Maximum value of finish time MTD1 of trucks in system after queue}

MTD1ready :=

Maximum(7,Label([MTD1out],If(Content(Rank(valCounter+Count,Model))>0,Last(Rank(valCounter+Count,Model)),0))),

{Maximum value of finish time MTD2 of trucks in system after queue}

MTD2ready :=

Maximum(7,Label([MTD2out],If(Content(Rank(valCounter+Count,Model))>0,Last(Rank(valCounter+Count,Model)),0))),

{If no other trucks in queue, calculate process arrival times for incoming truck}

If(Content(c)=1,

Do(

SetLabel([DOCCHECKin],Max(Label([AAT],i),

If(Content(Rank(9,Model))>0,Label([DOCCHECKout],First(Rank(9,Model))))),i),

SetLabel([DOCCHECKout],Label([DOCCHECKin],i)+ doccheck ,i),

SetLabel([PREHUBQin],Label([DOCCHECKout],i),i),

SetLabel([PREHUBQout],Label([DOCCHECKout],i),i),

SetLabel([PARKin],Label([PREHUBQout],i),i),

SetLabel([PARKout],Label([PARKin],i)+parking,i),

SetLabel([HUBQin],Label([PARKout],i),i),

SetLabel([HUBQout],Max(Label([HUBQin],i), Min(MTD1ready,MTD2ready)),i),

If(MTD1ready<=MTD2ready, Do(SetLabel([MTD1in],Label([HUBQout],i),i),

SetLabel([MTD1out],If(Label([pallets],i)=0,Label([HUBQout],i) + mins(1),Label([HUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i)

),

Do(SetLabel([MTD2in],Label([HUBQout],i),i),

SetLabel([MTD2out],If(Label([pallets],i)=0,Label([HUBQout],i) + mins(1),Label([HUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i)

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31

))

)

),

{If placed at last position, calculate process arrival times for incoming truck}

If(AND(Content(c)=valRank,Not(Content(c)=1)),

Do(

{Maximum value of finish time MTD1/MTD2 of trucks in queue}

If(valRank>1,

Repeat(valRank-1,

If(Label([MTD1out], Rank(Count,c))>0,

MTD1ready := Label([MTD1out], Rank(Count,c)),

MTD2ready := Label([MTD2out], Rank(Count,c)))

)),

SetLabel([DOCCHECKin],Max(Label([AAT],i), Label([DOCCHECKout],Rank((valRank-1),c))),i),

SetLabel([DOCCHECKout],Label([DOCCHECKin],i)+ doccheck ,i),

SetLabel([PREHUBQin],Label([DOCCHECKout],i),i),

SetLabel([PREHUBQout],Label([DOCCHECKout],i),i),

SetLabel([PARKin],Label([PREHUBQout],i),i),

SetLabel([PARKout],Label([PARKin],i)+parking,i),

SetLabel([HUBQin],Label([PARKout],i),i),

SetLabel([HUBQout],Max(Label([HUBQin],i), Min(MTD1ready,MTD2ready)),i),

If(MTD1ready<=MTD2ready, Do(SetLabel([MTD1in],Label([HUBQout],i),i),

SetLabel([MTD1out],If(Label([pallets],i)=0,Label([HUBQout],i) + mins(1),Label([HUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i)

),

Do(SetLabel([MTD2in],Label([HUBQout],i),i),

SetLabel([MTD2out],If(Label([pallets],i)=0,Label([HUBQout],i) + mins(1),Label([HUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i)

))

)

),

var([TableRef],vbString,Rank(1,Model)),

var([stopLoop],vbvalue,0),

While(AND(NOT(stopLoop),valRank<Content(c)),

Do(

MTD1ready := 0,

MTD2ready := 0,

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32

{Maximum value of finish time MTD1 of trucks in system after queue}

MTD1ready :=

Maximum(7,Label([MTD1out],If(Content(Rank(valCounter+Count,Model))>0,Last(Rank(valCounter+Count,Model)),0))),

{Maximum value of finish time MTD2 of trucks in system after queue}

MTD2ready :=

Maximum(7,Label([MTD2out],If(Content(Rank(valCounter+Count,Model))>0,Last(Rank(valCounter+Count,Model)),0))),

{Maximum value of finish time MTD1/MTD2 of trucks in queue}

If(valRank>1,

Repeat(valRank-1,

If(Label([MTD1out], Rank(Count,c))>0,

MTD1ready := Label([MTD1out], Rank(Count,c)),

MTD2ready := Label([MTD2out], Rank(Count,c)))

)),

{Calculate end time for incoming truck without swap}

SetLabel([aDOCCHECKin],Max(Label([AAT],i), If(valRank>1,Label([DOCCHECKout],Rank((valRank-1),c)))),i),

{CHECK IF CURRENT ANALYSED ATOM IS COUNTED}

SetLabel([aDOCCHECKout],Label([aDOCCHECKin],i)+ doccheck ,i),

SetLabel([aPREHUBQin],Label([aDOCCHECKout],i),i),

SetLabel([aPREHUBQout],Label([aDOCCHECKout],i),i),

SetLabel([aPARKin],Label([aPREHUBQout],i),i),

SetLabel([aPARKout],Label([aPARKin],i)+parking,i),

SetLabel([aHUBQin],Label([aPARKout],i),i),

SetLabel([aHUBQout],Max(Label([aHUBQin],i), Min(MTD1ready,MTD2ready)),i),

If(MTD1ready<=MTD2ready, Do(SetLabel([aMTD1in],Label([aHUBQout],i),i), SetLabel([aMTD2out],0,i),

SetLabel([aMTD1out],If(Label([pallets],i)=0,Label([aHUBQout],i) + mins(1),Label([aHUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i),

MTD1ready := Label([aMTD1out],i)

),

Do(SetLabel([aMTD2in],Label([aHUBQout],i),i), SetLabel([aMTD1out],0,i),

SetLabel([aMTD2out],If(Label([pallets],i)=0,Label([aHUBQout],i) + mins(1),Label([aHUBQout],i) +

(mins(15)+Label([pallets],i)*mins(3))),i),

MTD2ready := Label([aMTD2out],i)

)),

SetLabel([finishTimeA],Max(Label([aMTD1out],i),Label([aMTD2out],i)),i),

{Calculate end time for incoming truck with swap}

SetLabel([bDOCCHECKin],Max(Label([AAT],i), Label([DOCCHECKout],Rank(valRank,c))),i), {valRank instead of

valRank-1}

SetLabel([bDOCCHECKout],Label([bDOCCHECKin],i)+ doccheck ,i),

SetLabel([bPREHUBQin],Label([bDOCCHECKout],i),i),

SetLabel([bPREHUBQout],Label([bDOCCHECKout],i),i),

SetLabel([bPARKin],Label([bPREHUBQout],i),i),

SetLabel([bPARKout],Label([bPARKin],i)+parking,i),

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33

SetLabel([bHUBQin],Label([bPARKout],i),i),

SetLabel([bHUBQout],Max(Label([bHUBQin],i), Min(MTD1ready,MTD2ready)),i),

If(MTD1ready<=MTD2ready, Do(SetLabel([bMTD1in],Label([bHUBQout],i),i), SetLabel([bMTD2out],0,i),

SetLabel([bMTD1out],If(Label([pallets],i)=0,Label([bHUBQout],i) + mins(1),Label([bHUBQout],i)

+ (mins(15)+Label([pallets],i)*mins(3))),i)

),

Do(SetLabel([bMTD2in],Label([bHUBQout],i),i), SetLabel([bMTD1out],0,i),

SetLabel([bMTD2out],If(Label([pallets],i)=0,Label([bHUBQout],i) + mins(1),Label([bHUBQout],i)

+ (mins(15)+Label([pallets],i)*mins(3))),i)

)),

SetLabel([finishTimeB],Max(Label([bMTD1out],i),Label([bMTD2out],i)),i),

If(Label([finishTimeA],i)<Label([finishTimeB],i), Do(stopLoop := 1, SetLabel([MTD1out],Label([aMTD1out],i),i),

SetLabel([MTD2out],Label([aMTD2out],i),i),

SetLabel([DOCCHECKout],Label([aDOCCHECKout],i))

), Do(inc(valRank), If(NOT(valRank<Content(c)),Do(SetLabel([MTD1out],Label([bMTD1out],i),i),

SetLabel([MTD2out],Label([bMTD2out],i),i),

SetLabel([DOCCHECKout],Label([aDOCCHECKout],i)))))) {NEW}

)),

{END of sequencing process}

{Recalculate values for trucks with higher queue number}

If(Label([MTD1out], i)>0,

MTD1ready := Label([MTD1out], i),

MTD2ready := Label([MTD2out], i)),

If(valRank<Content(c),

Do(

{Recalculate arrival times for truck directly behind truck i}

SetLabel([DOCCHECKin], Max(Label([AAT],Rank(valRank,c)), Label([DOCCHECKout],i)),Rank((valRank),c)),

SetLabel([DOCCHECKout],Label([DOCCHECKin],Rank(valRank,c))+ doccheck ,Rank(valRank,c)),

SetLabel([PREHUBQin],Label([DOCCHECKout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([PREHUBQout],Label([DOCCHECKout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([PARKin],Label([PREHUBQout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([PARKout],Label([PARKin],Rank(valRank,c))+parking,Rank(valRank,c)),

SetLabel([HUBQin],Label([PARKout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([HUBQout],Max(Label([HUBQin],Rank(valRank,c)), Min(MTD1ready,MTD2ready)),Rank(valRank,c)),

If(MTD1ready<=MTD2ready, Do(SetLabel([MTD1in],Label([HUBQout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([MTD2out],0,Rank(valRank,c)),

SetLabel([MTD1out],If(Label([pallets],Rank(valRank,c))=0,Label([HUBQout],Rank(valRank,c)) +

mins(1), Label([HUBQout],Rank(valRank,c)) + (mins(15)+Label([pallets],Rank(valRank,c))*mins(3)) ),Rank(valRank,c)),

MTD1ready := Label([MTD1out], Rank(valRank,c))),

Do(SetLabel([MTD2in],Label([HUBQout],Rank(valRank,c)),Rank(valRank,c)),

SetLabel([MTD1out],0,Rank(valRank,c)),

SetLabel([MTD2out],If(Label([pallets],Rank(valRank,c))=0,Label([HUBQout],Rank(valRank,c)) +

mins(1), Label([HUBQout],Rank(valRank,c)) + (mins(15)+Label([pallets],Rank(valRank,c))*mins(3)) ),Rank(valRank,c)),

MTD2ready := Label([MTD2out], Rank(valRank,c))))

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34

)

),

var([remainingTrucks],vbValue,valRank+1),

While(remainingTrucks<Content(c),

Do(

var([trucknr],vbvalue,1),

{Recalculate arrival times for trucks behind truck i}

SetLabel([DOCCHECKin], Max(Label([AAT],Rank((remainingTrucks),c)),

Label([DOCCHECKout],Rank((remainingTrucks-1),c))),Rank(remainingTrucks,c)),

SetLabel([DOCCHECKout],Label([DOCCHECKin],Rank((remainingTrucks),c))+ doccheck

,Rank((remainingTrucks),c)),

SetLabel([PREHUBQin],Label([DOCCHECKout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([PREHUBQout],Label([DOCCHECKout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([PARKin],Label([PREHUBQout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([PARKout],Label([PARKin],Rank((remainingTrucks),c))+parking,Rank((remainingTrucks),c)),

SetLabel([HUBQin],Label([PARKout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([HUBQout],Max(Label([HUBQin],Rank((remainingTrucks),c)),

Min(MTD1ready,MTD2ready)),Rank((remainingTrucks),c)),

If(MTD1ready<=MTD2ready,

Do(SetLabel([MTD1in],Label([HUBQout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([MTD2out],0,Rank((remainingTrucks),c)),

SetLabel([MTD1out],If(Label([pallets],Rank((remainingTrucks),c))=0,Label([HUBQout],Rank((remainingTrucks),c)) +

mins(1),Label([HUBQout],Rank((remainingTrucks),c)) +

(mins(15)+Label([pallets],Rank((remainingTrucks),c))*mins(3))),Rank((remainingTrucks),c)),

MTD1ready := Label([MTD1out], Rank(remainingTrucks,c))),

Do(SetLabel([MTD2in],Label([HUBQout],Rank((remainingTrucks),c)),Rank((remainingTrucks),c)),

SetLabel([MTD1out],0,Rank((remainingTrucks),c)),

SetLabel([MTD2out],If(Label([pallets],Rank((remainingTrucks),c))=0,Label([HUBQout],Rank((remainingTrucks),c)) +

mins(1),Label([HUBQout],Rank((remainingTrucks),c)) +

(mins(15)+Label([pallets],Rank((remainingTrucks),c))*mins(3))),Rank((remainingTrucks),c)),

MTD2ready := Label([MTD2out], Rank(remainingTrucks,c)))),

Inc(trucknr),

Inc(remainingTrucks)

)

),

SetLabel([valRankcheck],valRank,i),

valRank {Return position}

))

Input strategy openallic(c)

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35

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

Appendix L.5 – Scenario F

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation Dim([InfoTime],vbvalue,mins(0))

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([conTimeOnArr],ExcelActiveX_Read(Output(c),6),i),

If(ExcelActiveX_Read(Output(c),6)<0,SetLabel([connectiontime],-1,i),

SetLabel([connectiontime],Time + InfoTime +

mins(ExcelActiveX_Read(Output(c),6)),i)),

If(ExcelActiveX_Read(Output(c),3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c),3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c),4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c),5),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime + mins(8)*Label([VIST],i) +

mins(25)*Label([REST],i),i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

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36

Incoming trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline

SEE SCENARIO E but Replace:

valRank := (t-findqueuepos([connectiontime],2)), by

valRank := (t-findqueuepos([pallets],2)),

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

Appendix L.6 – Scenario G

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation

Do(

If(ExcelActiveX_Read(Output(c)+1,3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c)+1,3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c)+1,4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c)+1,5),i),

Dim([InfoTime],vbvalue,mins(0)),

Dim([cutOffTime],vbvalue,240 + Label([REST],i)*25 + Label([VIST],i)*8 + 8 +

7 + if(Label([pallets],i)=0,1,15 + Label([pallets],i)*3)),

var([lostAWBs],vbValue,0),

var([ColumnNr],vbValue,6),

var([connectiontime1],vbValue,ExcelActiveX_Read(Input(c),ColumnNr)),

While(AND(connectiontime1<cutOffTime, NOT(connectiontime1=0)),

Do(

Inc(ColumnNr),

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37

connectiontime1 := ExcelActiveX_Read(Input(c),ColumnNr),

Inc(lostAWBs)

)

),

SetLabel([LostAWBs],lostAWBs,i),

If(connectiontime1 =0,connectiontime1 :=

ExcelActiveX_Read(Input(c),If(ColumnNr=6,6,(ColumnNr-1)))),

If(connectiontime1<=cutOffTime,connectiontime1:=99999),

SetLabel([conTimeOnArr],connectiontime1 ,i),

SetLabel([connectiontime], Time + InfoTime + mins(connectiontime1), i)

)

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime,i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Incoming trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline SEE SCENARIO E

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

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38

Appendix L.7 – Scenario H

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation Dim([InfoTime],vbvalue,mins(60))

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(60)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([conTimeOnArr],ExcelActiveX_Read(Output(c),6),i),

SetLabel([connectiontime],Time + InfoTime +

mins(ExcelActiveX_Read(Output(c),6)),i),

If(ExcelActiveX_Read(Output(c),3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c),3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c),4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c),5),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime + mins(8)*Label([VIST],i) +

mins(25)*Label([REST],i),i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Incoming trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline SEE SCENARIO E

Input strategy openallic(c)

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39

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

Appendix L.8 – Scenario I

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation Dim([InfoTime],vbvalue,mins(60))

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(60)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([conTimeOnArr],ExcelActiveX_Read(Output(c),6),i),

SetLabel([connectiontime],Time + InfoTime +

mins(ExcelActiveX_Read(Output(c),6)),i),

If(ExcelActiveX_Read(Output(c),3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c),3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c),4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c),5),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime + mins(8)*Label([VIST],i) +

mins(25)*Label([REST],i),i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Incoming trucks Capacity 120

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40

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline

SEE SCENARIO E but Replace:

valRank := (t-findqueuepos([connectiontime],2)), by

valRank := (t-findqueuepos([pallets],2)),

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

Appendix L.9 – Scenario J

Atom name Settings/Triggers 4DScript

Input

Inter-arrival time

(s) mins(ExcelActiveX_Read(output(c)+1,1))

Time till first

product (s) mins(ExcelActiveX_Read(output(c)+1,1))

Number of

products 8000

Send to 1

Trigger on

creation

Do(

If(ExcelActiveX_Read(Output(c)+1,3)>4,SetLabel([pallets],4,i),

SetLabel([pallets],ExcelActiveX_Read(Output(c)+1,3),i)),

SetLabel([REST],ExcelActiveX_Read(Output(c)+1,4),i),

SetLabel([VIST],ExcelActiveX_Read(Output(c)+1,5),i),

Dim([InfoTime],vbvalue,mins(0)),

Dim([cutOffTime],vbvalue,240 + Label([REST],i)*25 + Label([VIST],i)*8 + 8 +

7 + if(Label([pallets],i)=0,1,15 + Label([pallets],i)*3)),

var([lostAWBs],vbValue,0),

var([ColumnNr],vbValue,6),

var([connectiontime1],vbValue,ExcelActiveX_Read(Input(c),ColumnNr)),

While(AND(connectiontime1<cutOffTime, NOT(connectiontime1=0)),

Do(

Inc(ColumnNr),

connectiontime1 := ExcelActiveX_Read(Input(c),ColumnNr),

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41

Inc(lostAWBs)

)

),

SetLabel([LostAWBs],lostAWBs,i),

If(connectiontime1 =0,connectiontime1 :=

ExcelActiveX_Read(Input(c),If(ColumnNr=6,6,(ColumnNr-1)))),

If(connectiontime1<=cutOffTime,connectiontime1:=99999),

SetLabel([conTimeOnArr],connectiontime1 ,i),

SetLabel([connectiontime], Time + InfoTime + mins(connectiontime1), i)

)

Trigger on exit

Do(

Dim([InfoTime],vbvalue,mins(0)),

SetLabel([number],output(c),i),

SetLabel([arrivalday],ExcelActiveX_Read(Output(c),2),i),

SetLabel([TRUCKID],ExcelActiveX_Read(Output(c),33),i),

SetLabel([AAT],Time+InfoTime,i),

SetLabel([T1b],Time,i)

)

Atom name Settings/Triggers 4DScript

Incoming trucks

Capacity 120

Send to if(Label([dummy], first(c)) = 1,2,1)

Queue discipline SEE SCENARIO E

Input strategy openallic(c)

Trigger on entry 0

Trigger on exit

Do(

SetLabel([T1e],Time,i),

SetLabel([dT1],Label([T1e],i)-Label([T1b],i),i))

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42

Appendix M – Model results: FAP per day

Figure 54. FAP of the different scenarios from day-to-day,

calculated by use of Equation 1.

76,96%76,98%77,00%77,02%77,04%77,06%77,08%

Monday

73,00%74,00%75,00%76,00%77,00%78,00%79,00%80,00%81,00%

Friday

79,00%79,20%79,40%79,60%79,80%80,00%

Tuesday

68,00%70,00%72,00%74,00%76,00%78,00%80,00%

Saturday

74,00%

76,00%

78,00%

80,00%

Wednesday

66,00%68,00%70,00%72,00%74,00%76,00%78,00%

Sunday

70,00%72,00%74,00%76,00%78,00%80,00%

Thursday