International Journal on Data Science and Technology
2016; 2(3): 36-40
http://www.sciencepublishinggroup.com/j/ijdst doi: 10.11648/j.ijdst.20160203.11
Case Report
Fresh Food Distribution Center Storage Allocation Strategy Analysis Based on Optimized Entry-Item-Quantity-ABC
Zhu Jie, Liu Xiaoli, Li Juntao
School of Information, Beijing Wuzi University, Beijing, China
Email address:
zhujie@bwu.edu.cn (Zhu Jie), 1058421990@qq.com (Liu Xiaoli), 862974337@qq.com (Li Juntao)
To cite this article:
Zhu Jie, Liu Xiaoli, Li Juntao. Fresh Food Distribution Center Storage Allocation Strategy Analysis Based on Optimized Entry-Item-Quantity-ABC. International Journal on Data Science and Technology. Vol. 2, No. 3, 2016, pp. 36-40.
doi: 10.11648/j.ijdst.20160203.11
Received: March 30, 2016; Accepted: April 14, 2016; Published: May 17, 2016
Abstract: For labour-intensive field, appropriate storage location assignment is the best choice to increase order picking efficiency and reduce order cycle time, which satisfy customers and reduce cost at the same time. In this paper, we advance a storage location assignment for fresh food distribution center with a manual picker-to-parts picking system by using an optimized approach. To reflect the customer demand uncertainty, the orders received in a certain time range have been grouped and given the different coefficients according to the reference value of them. On that basis, the storage location can be designed optimally based on the Entry-Item-Quantity (EIQ) analysis, which can be used to resolve some orders picking issues, long-picking time and high inventory costs, caused by seasonal change of fresh food, unstable customer demand and repeat purchases. From the computational results, new storage allocation strategy achieves at most a 16% reduction in travel time.
Keywords: Orders Weighting Coefficient, EIQ-ABC, Storage Assignment
Introduction
Storage location assignment is critical to the warehouse management. Lack of scientific storage policy, any change in demand frequencies or addition to the product assortments leads to high costs-the very problems posed by fresh e-commerce enterprises.
Many scholars have conducted in-depth research about assigning products to storage location, resulting in a large number of research results. These researches are mainly focused on 3C products, tobacco, grain oil and so on. Compared with these products which requirements are static on the whole, fresh food requirements are with the characteristic of seasonal. Conventional methods of analyzing logistics centers mainly focus on examining data onto lump sums or single-period orders instead of multiple-period orders. Consequently, such methods are not appropriate for managing rapid changes in contemporary market orders.
Through the comprehensive analysis of e-commerce storage assignment policy, this paper makes an innovative research methods addressing fresh food seasonal demand. The proposed
method is divided into two stages. In the first stage, the orders in a certain time range have been grouped and given the different coefficients according to the reference value of them. In the second stage, the storage location can be designed optimally based on EIQ-ABC method. Figure 1 shows the proposed procedure with the optimized EIQ-ABC for classifying inventory items as A, B or C and rearranging them accordingly.
Figure 1. Order picking process.
37 Zhu Jie et al.: Fresh Food Distribution Center Storage Allocation Strategy Analysis Based on Optimized Entry-Item-Quantity-ABC
Problem Formulation
The fresh food distribution center consists of storage zone (freezer), production zone and buffer zone, used to keep fresh meat, eggs, aquatic products, etc. Freezer is the most labour-intensive place of fresh food distribution center workforce. Some medium and small-sized fresh food distribution center usually needs to deal with 1000 orders a day and the number will expand to about 2000 orders during the holidays or promotions days. Order picking is the most important parts of a distribution center, which is the "heart" of the distribution center". There are usually some problems existed in the fresh food distribution center.
- The order picking efficiency is low. Among the warehousing activities in distribution centers, order picking is the most time-consuming and labour-intensive. Warehousing activities including picking, processing, sorting, packaging and distribution take 2h at least. Order picking (picking by article) generally accounts for 64%. As a result, order picking becomes a bottleneck preventing distribution centers from maximizing the effectiveness of their warehousing activities. There's the research data we got by tracking the warehouse activities, as shown in table 1 and table 2.
Table 1. Genera, delivery 300 orders.
Total 125
60
20 (check), 10-15 (labeling), 20-30 (sorting, check and packaging
Picking 5
Sorting 7
Worker Time
Table 2. Holidays or promotions, delivery 500 orders.
Total 165
90-100
20 (check), 15 (labeling), 30 (sorting, check and packaging)
7-9
Sorting
5
Picking
Worker Time
- There’s no reasonably effective storage assignment in freezer. Under the random-storage policy, pickers get accusto
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- There’s no reasonably effective storage assignment in freezer. Under the random-storage policy, pickers get accusto
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