Warehousing and Inventory Management in Dual Channel and Global Supply Chains

More firms are adopting the dual-channel supply chain business model where firms offer their products to customers using dual-channel sales (to offer the item to customers online and offline). The development periods of innovative products have been shortened, especially for high-tech companies, which leads to products with short life cycles. This means that companies need to put their new products on the market as soon as possible. The dual-channel supply chain is a perfect tool to increase the customer’s awareness of new products and to keep customers’ loyalty; firms can offer new products online to the customer faster compared to the traditional retail sales channel. The emergence of dual-channel firms was mainly driven by the expansion in internet use and the advances in information and manufacturing technologies. No existing research has examined inventory strategies, warehouse structure, operations, and capacity in a dual-channel context. Additionally, firms are in need to integrate their global suppliers base; where the lower parts costs compensate for the much higher procurement and cross-border costs; in their supply chain operations. The most common method used to integrate the global supplier base is the use of cross-dock, also known as Third Party Logistic (3PL). This study is motivated by real-world problem, no existing research has considered the optimization of cross-dock operations in terms of dock assignment, storage locations, inventory strategies, and lead time uncertainty in the context of a cross-docking system. In this dissertation, we first study the dual-channel warehouse in the dual-channel supply chain. One of the challenges in running the dual-channel warehouse is how to organize the warehouse and manage inventory to fulfill both online and offline (retailer) orders, where the orders from different channels have different features. A model for a dual-channel warehouse in a dual-channel supply chain is proposed, and a solution approach is developed in the case of deterministic and stochastic lead times. Ending up with numerical examples to highlight the model’s validity and its usefulness as a decision support tool. Second, we extend the first problem to include the global supplier and the cross-border time. The impact of global suppliers and the effect of the cross-border time on the dual-channel warehouse are studied. A cross-border dual-channel warehouse model in a dual-channel supply chain context is proposed. In addition to demand and lead time uncertainty, the cross-border time is included as stochastic parameter. Numerical results and managerial insights are also presented for this problem. Third, motivated by a real-world cross-dock problem, we perform a study at one of the big 3 automotive companies in the USA. The company faces the challenges of optimizing their operations and managing the items in the 3PL when introducing new products. Thus, we investigate a dock assignment problem that considers the dock capacity and storage space and a cross-dock layout. We propose an integrated model to combine the cross-dock assignment problem with cross-dock layout problem so that cross-dock operations can be coordinated effectively. In addition to lead time uncertainty, the cross-border time is included as stochastic parameter. Real case study and numerical results and managerial insights are also presented for this problem highlighting the cross-border effect. Solution methodologies, managerial insights, numerical analysis as well as conclusions and potential future study topics are also provided in this dissertation

RFID in the warehouse:a literature analysis (1995-2010) of its applications, benefits, challenges and future trends

Radio Frequency Identification (RFID) has been identified as a crucial technology for the modern 21st century knowledge-based economy. Some businesses have realised benefits of RFID adoption through improvements in operational efficiency, additional cost savings, and opportunities for higher revenues. RFID research in warehousing operations has been less prominent than in other application domains. To investigate how RFID technology has had an impact in warehousing, a comprehensive analysis of research findings available from articles through leading scientific article databases has been conducted. Articles from years 1995 to 2010 have been reviewed and analysed with respect to warehouse operations, RFID application domains, benefits achieved and obstacles encountered. Four discussion topics are presented covering RFID in warehousing focusing on its applications, perceived benefits, obstacles to its adoption and future trends. This is aimed at elucidating the current state of RFID in the warehouse and providing insights for researchers to establish new research agendas and for practitioners to consider and assess the adoption of RFID in warehousing functions

The Effect of Slot-Code Optimization on Travel Times in Common Unit-Load Warehouses

The main aim of this paper is to estimate material handling times reductions in one-block unit-load warehouse organised with an optimal slot-code allocation, rather than with a uniform pick/store locations distribution, while comparing single and dual-command cycles from a travel distance perspective; results are calculated through multiple what-if analysis based on random scenarios simulations assuming variable input/output positions and warehouse shapes. Simulations helped in the effective quantification of travel times reductions, gaining a result of extreme importance for those manufacturing, distribution and retailing companies which aim at both designing their warehouse and determining the right type and number of transportation resources. Because of currently used warehouse management systems (WMS), companies do not reckon so needful of existing literature relying on uniform pick/store distribution: this paper seems the first to address a precise estimation of material handling times when fast-movers items are more or less effectively placed nearby warehouses entranc

Synchronisation of material flows in mass-customised production systems: a literature-based classification framework and industrial application

The mass customisation strategy is needed by manufacturing companies to face the increasing variety and unpredictability of products required by customers. However, mass customisation may increase the complexity of managing manufacturing and production logistics activities, for example due to reduced product batch sizes. The synchronisation of material flows within the factory is emerging as a way to address this complexity, as it enables an effective and efficient implementation of mass customisation. Indeed, the fourth Industrial Revolution introduces new digital levers, which can be combined with traditional managerial levers to achieve the synchronisation of material flows within the factory. This study contributes to the rising stream of research on this topic. A systematic literature review was conducted, leading to the development of a classification framework of the levers supporting the synchronisation of material flows. The identified managerial levers are: storage of materials, feeding policy, and scheduling. The digital levers are: materials tracking, process tracking, data analytics, and assistance systems. The developed framework was operationalised in four industrial cases and applied as a tool to map their levers related to the synchronisation of material flows

Sea Container Terminals

Due to a rapid growth in world trade and a huge increase in containerized goods, sea container terminals play a vital role in globe-spanning supply chains. Container terminals should be able to handle large ships, with large call sizes within the shortest time possible, and at competitive rates. In response, terminal operators, shipping liners, and port authorities are investing in new technologies to improve container handling infrastructure and operational efficiency. Container terminals face challenging research problems which have received much attention from the academic community. The focus of this paper is to highlight the recent developments in the container terminals, which can be categorized into three areas: (1) innovative container terminal technologies, (2) new OR directions and models for existing research areas, and (3) emerging areas in container terminal research. By choosing this focus, we complement existing reviews on container terminal operations

Modeling the Impact of Technological Changes on Urban Commercial Trips by Commercial Activity Routing Type

An array of noteworthy developments in logistics practice has taken place without an equivalent and comprehensive development in urban freight transportation modeling. Part of the problem is the lack of deep understanding of the workings of distribution processes in relation to the generation of truck traffic. In this paper it is emphasized the role and importance that distribution network size, and information and communication technology have on the truck traffic flows that materializes as the supply chain that flows over the public infrastructure. This paper develops the concept of commercial activity routing types that characterize the interplay between transportation demand requests and routing characteristics. This research contributes to the field proposing a novel and detailed characterization of truck flows in a supply chain context. Using well-known yet simple models and formulas from vehicle routing, operations research, and management science literature, we derive behavioral insights about distributors and carriers’ routing and order sizing decisions, as routing constraints and second order effects are important drivers of truck flows. The main contribution is to bring a new commercial activity-routing perspective and deeper level of operational decision-making analysis to cope with the intricacies of freight transportation modeling

An application of design research to an offshore-supply port operation

This article presents a method for intervening systemically to structure port operations using Business Problem-Solving. First, the concepts associated with logistics and supply chain are presented in order to establish the basis for the proposition that ports be regarded as links in a chain. From that integrating perspective, methods and techniques can be applied more appropriately to port operations and contribute to surmounting partial approaches. Theoretical frameworks are then proposed to characterize and analyze how a particular port operates, with emphasis on decisions and processes that guide cargo movement and resource allocation necessary for the cargo cycle. The proposed method is applied to a private port which supports all the oil rigs of a basin in southeast Brazil, and through it are conducted operations that provide offshore logistical support. Completion of the method's problem definition, analysis and diagnosis stages culminates in the proposal of a new integrated model of scheduling