Case Study of building Storage Strategy in the Logistics Distribution Center—Logistics Company A as an Example

Abstract

Storage and maintenance are essential in warehouse operation management. Accordingly, this study takes a logistics distribution center as the case. In this case, Logistics Company A and X Beverage Company establish a logistics partnership in the supply chain. Logistics Company A is responsible for designing and handling X Beverage Company’s cargo storage, transportation, and distribution businesses in big and small retail shops in Y region. Reducing the goods overstock, stock, and stock-out rate and improving the goods’ freshness are important because beverages are classified as fast-moving consumer goods. This study develops the storage strategy for goods in X Beverage Company through classified management of goods by activity-based classification (ABC) with the primary aim of increasing the efficiency of storage management. Second, goods stock and management strategies are developed with the aid of EIQ (entry, item, and quantity) analysis and in accordance with results of the ABC classification. Finally, the EOQ (economic ordering quantity) stock control model is established for large retailers and small retail stores.