With the advent of Industry 4.0, the world is witnessing increasing use of data and data-driven services. This phenomenon has penetrated through different sectors of production including logistics. The purpose of this study is to explore the use of Artificial Intelligence (AI) and Machine Learning (ML) in production logistics. This paper is the first step in the direction of understanding the complexity of AI and ML algorithms and thus explaining the black-box-like characteristics of these algorithms. This is coupled with the definition of eXplainable AI (XAI) in the domain. The paper furthers describes the needs for XAI and consequently presents a rubric for implementing XAI in the domain of production logistics and discusses it in detail.