Fresh Food Distribution Center Storage Allocation Strategy Analysis Based on Optimized Entry-Item-Quantity-ABC

Zhu Jie

doi:10.11648/j.ijdst.20160203.11

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.

Highlights

Storage location assignment is critical to the warehouse management
Conventional methods of analyzing logistics centers mainly focus on examining data onto lump sums or single-period orders instead of multiple-period orders
By storing fresh food according to the correlation of customers demand, pickers can quickly search for the goods in demand

Summary

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. Conventional methods of analyzing logistics centers mainly focus on examining data onto lump sums or single-period orders instead of multiple-period orders. 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 storage location can be designed optimally based on EIQ-ABC method. 37 Zhu Jie et al.: Fresh Food Distribution Center Storage Allocation Strategy Analysis Based on Optimized Entry-Item-Quantity-ABC

Problem Formulation

Analysis of Influence Factors and Principles

Data Processing

EIQ-ABC Analysis

Findings

Conclusion