Abstract
Distribution center (DC) operation is one of the essential parts of manufacturing and service operations. The DC layout problem is a key to DC operations. Generally, DC layout design models attempt to optimize the different objectives under one floor situation. In this paper, a new kind of DC layout problem, multi-level DC layout problem is investigated. In the case of multi-floor DC, vertical travel time will play an important role on the response time to the customers. Suppose that the customer orders arrive according to the Poisson process, an attempt is made to assign items into different floors by optimizing the average round-trip time (RTT) of elevator system since RTT is an important performance measure of vertical time. Because the value of RTT can't be obtained directly, the calculation of RTT begins from an initial guess value and the algorithm is iterated until RTT converges with the determination of average reversal highest floor, average stop numbers of elevator car and average item numbers carried.
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