Service-level based response by assignment and order processing for warehouse automation

Along with tremendous growth of online sales in this Internet era, unprecedented intensive competition in shortening the delivery time of orders has been occurring among several major online retailers. On the other hand, the idea of customer-oriented service creates a trend of diversified pricing strategy. Different price options are offered to cater to diversified needs of customers. It has become an urgent need for online sales industries to provide the differentiated service levels for different classes of customers with different priorities based on the charging prices and resource constraints of the supply network. In response to the challenges mentioned above, this thesis focuses on providing differentiated service levels to different customers within the warehouse automation system, which is the key point of the supply network. To concentrate on the research topic, the process of a user’s order in warehouse automation system is broken down into the waiting process and retrieving process, which is related to order processing policy and storage assignment method respectively. Priority Based Turn-over Rate (PBTR) storage assignment method, Priority Based Weighted Queuing (PBWQ) policy and joint optimization of storage assignment and PBWQ policy are proposed, developed, explored and validated in this thesis. Utility function of charging price and order processing time is developed to measure the performances of the proposed methods. Compared with the classical turn over rate assignment method, PBTR has 23.21% of improvement under the measurement of utility function, when different classes of customers have different needs for products. PBWQ improves the system performance by 18.15% compared with First-Come-First-Serve (FCFS) policy under baseline setting of experiments. Joint optimization of storage assignment and PBWQ policy has the improvement of 19.64% in system performance compared with the baseline system which applies both classical storage assignment method and FCFS order processing policy

The MVA Priority Approximation

A Mean Value Analysis (MVA) approximation is presented for computing the average performance measures of closed-, open-, and mixed-type multiclass queuing networks containing Preemptive Resume (PR) and nonpreemptive Head-Of-Line (HOL) priority service centers. The approximation has essentially the same storage and computational requirements as MVA, thus allowing computationally efficient solutions of large priority queuing networks. The accuracy of the MVA approximation is systematically investigated and presented. It is shown that the approximation can compute the average performance measures of priority networks to within an accuracy of 5 percent for a large range of network parameter values. Accuracy of the method is shown to be superior to that of Sevcik's shadow approximation

Priority Auctions and Queue Disciplines that Depend on Processing Time

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004We analyze the allocation of priority in queues via simple bidding mechanisms. In our model, the stochastically arriving customers are privately informed about their own processing time. They make bids upon arrival at a queue whose length is unobservable. We consider two bidding schemes that differ in the definition of bids (these may reflect either total payments or payments per unit of time) and in the timing of payments (before, or after service). In both schemes, a customer obtains priority over all customers (waiting in the queue or arriving while he is waiting) who make lower bids. Our main results show how the convexity/concavity of the function expressing the costs of delay determines the queue-discipline (i.e., SPT, LPT) arising in a bidding equilibrium

Recent Advances in Accumulating Priority Queues

This thesis extends the theory underlying the Accumulating Priority Queue (APQ) in three directions. In the first, we present a multi-class multi-server accumulating priority queue with Poisson arrivals and heterogeneous services. The waiting time distributions for different classes have been derived. A conservation law for systems with heterogeneous servers has been studied. We also investigate an optimization problem to find the optimal level of heterogeneity in the multi-server system. Numerical investigations through simulation are carried out to validate the model. We next focus on a queueing system with Poisson arrivals, generally distributed service times and nonlinear priority accumulation functions. We start with an extension of the power-law APQ in Kleinrock and Finkelstein (1967), and use a general argument to show that there is a linear system of the form discussed in Stanford, Taylor, and Ziedins (2014) which has the same priority ordering of all customers present at any given instant in time, for any sample path. Beyond the power-law case, we subsequently characterize the class of nonlinear accumulating priority queues for which an equivalent linear APQ can be found, in the sense that the waiting time distributions for each of the classes are identical in both the linear and nonlinear systems. Many operational queuing systems must adhere to waiting time targets known as Key Performance Indicators (KPIs), particularly in health care applications. In the last aspect, we address an optimization problem to minimize the weighted average of the expected excess waiting time (WAE), so as to achieve the optimal performance of a system operating under KPIs. We then find that the Accumulating Priority queuing discipline is well suited to systems with KPIs, in that each class of customers progresses fairly towards timely access by its own waiting time limit. Due to the difficulties in minimizing the WAE, we introduce a surrogate objective function, the integrated weighted average excess (IWAE), which provides a useful proxy for WAE. Finally, we propose a rule of thumb in which patients in the various classes accumulate priority credit at a rate that is inversely proportional to their time limits