Integrated zone picking and vehicle routing operations with restricted intermediate storage

The competitiveness of a retailer is highly dependent on an efficient distribution system. This is especially true for the supply of stores from distribution centers. Stores ask for high flexibility when it comes to their supply. This means that fast order processing is essential. Order processing affects different subsystems at the distribution center: Orders are picked in multiple picking zones, transferred to intermediate storage, and delivered via dedicated tours. These processing steps are highly interdependent. The schedule for picking needs to be synchronized with the routing decisions to ensure availability of the delivery orders at the DC’s loading docks when their associated tours are scheduled. Concurrently, intermediate storage represents a bottleneck as capacities for order storage are limited. The simultaneous planning of picking and routing operations with restricted intermediate storage is therefore relevant for retail practice but has not so far been considered within an integrated planning approach. Our work addresses this task and discusses an integrated zone picking and vehicle routing problem with restricted intermediate storage. We present a comprehensive model formulation and introduce a general variable neighborhood search for simultaneous consideration of the given planning stages. We also present two alternative sequential approaches that are motivated by the prevailing planning situation in industry. Numerical experiments that we have conducted show the need for an integrated planning approach to obtain practicable results. Further, we identify the impact of the main problem characteristics on the overall planning problem and provide valuable insights for the application of this approach in industry

Application of Value Stream Mapping in E-Commerce: A Case Study on an Amazon Retailer

In recent years, the e-commerce market has grown significantly, and the online retail market has become very competitive. Online retailers strive to improve their supply chain operations to reduce costs and to improve customer satisfaction. Value stream mapping (VSM), a tool created by the lean production movement to identify and reduce errors, losses, and lead time and to improve value-added activities, has been proven to be effective in many manufacturing processes. In this study, we investigate the application of value stream mapping (VSM) in the supply chain of an e-commerce retailer on Amazon. By visualizing the entire supply chain with VSM, the waste that is produced during the delivery process from the retailer to the customer was identified. The five whys method was then applied to find the root cause of the waste. Furthermore, a scoring method was developed to evaluate and compare two different supply chain logistic models to identify a strategy for improvement. This study provides a systematic methodology to understand, evaluate, and improve the entire e-commerce supply chain process utilizing VSM. It was demonstrated that the methodology could improve supply chain management efficiency, customer satisfaction, and cost reduction

Data-driven Warehouse Management in Global Supply Chains

Warehouse management has emerged as a determinant for success of global supply chain management. This thesis focuses on how to solve warehouse challenges in global supply chain management (SCM) that is characterized by large volume uncertainty, great responsiveness needs and complex order-fulfilment collaboration with other functionalities. We employ data analytic methods to exploit the rich data information obtained from detailed registration of daily warehouse operations to address these challenges. By providing actual application examples in real-world situations we showcase the potency of such data-driven warehouse management. In this dissertation, data-driven warehouse management is presented by four-steps in the time horizon of warehouse operations: Long-term opportunities (for the coming years) are examined by predictive analytics for expanding cross-border e-commerce in the European Union. Mid-term demand for spare parts during the end-of-life phase (of several months) are forecasted by means of data-driven modelling for installed base. Short-term operational opportunity (weekly or daily) are presented by employing detailed productivity data to sustain effective operation of variable warehouse resources. Real-time (hourly or shorter) data applications are introduced for job priority allocation to improve daily responsiveness in warehouse order fulfilment. All these data analytic methods can be incorporated in warehouse management systems where practitioners can tune the specific strategies according to their warehouse constraints, including location cost, labour cost, time criticality, and freight company flexibility. In this way, data analytics at the warehouse level offers great opportunities for managing increasing uncertainties and performance requirements in global SCM

Simulation modeling for integrated e-supply chain management

E-supply chain management is an emerging area of interest as companies begin to explore the Internet\u27s potential to restructure supply chain relationships. The environmental impact of e-supply chain management is a critical issue towards sustainability. This thesis discusses and models an integrated e-supply chain network accounting for material and information flows throughout the supply chain in order to analyze the environmental implications and tradeoffis with other system characteristics. The network structure has complex interactions between various entities. In order to understand and analyze dynamic performance, a discrete-event simulation approach is utilized. An integrated tool was developed using the Arena simulation software to simulate the e-business supply chain including lifecycle stages. The modules capture general supply chain process and ebusiness concepts. Consequently, it can be used in wide range of applications. A case study based upon a desktop computer was modeled to illustrate the application of the simulation model, evaluate environmental performance and examine the stochastic behavior of the network

Omni-channel logistics : state of the art

This book is the result of a first-time cooperation between the Association of Logistics Designers (VLO) and the European Supply Chain Forum (eSCF) – both closely related to university and having knowledge sharing as its focal points. It contains chapters that combine university professors or researchers from eSCF with logistics designers from VLO.Omni-channel logistics is becoming more and more the buzzword in the logistics and supply chain world. Both online and offline retail companies see it as a way to broaden their offering to customers.The key question is how this is happening and how the relevant supply processes need to be adapted to handle this omni-channel thinking.This book gives an interesting overview of the current state-of-the-art in the literature and practice related to omni-channel logistics. All relevant decision problems are reviewed and discussed in detail. Clearly, the world is changing as we speak. Nevertheless, we aimed to give a complete overview of the current evolution. A number of real-life cases are offered and discussed, as suchcomplementing the academic literature. We are indebted to 17 more authors from both our associations that have put effort into establishing a logistics designer’s view on omni-channel logistics