Product allocation to different types of distribution center in retail logistics networks
| Autor: | Michael G. Sternbeck, Heinrich Kuhn, Andreas Holzapfel |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Information Systems and Management
General Computer Science Operations research media_common.quotation_subject 0211 other engineering and technologies Distribution (economics) 02 engineering and technology Management Science and Operations Research Industrial and Manufacturing Engineering Discrete optimization 0502 economics and business Operations management Operational costs media_common Distribution center 021103 operations research biology business.industry 05 social sciences Euros biology.organism_classification Solution structure Product (business) Interdependence Modeling and Simulation Business 050203 business & management |
| Zdroj: | European Journal of Operational Research. 264:948-966 |
| ISSN: | 0377-2217 |
| DOI: | 10.1016/j.ejor.2016.09.013 |
| Popis: | We consider the problem of assigning stockkeeping units to distribution centers (DCs) belonging to different DC types of a retail network, e.g., central, regional, and local DCs. The problem is motivated by the real situation of a retail company and solved by an MIP solution approach. The MIP model reflects the interdependencies between inbound transportation, outbound transportation and instore logistics as well as capital tied up in inventories and differences in picking costs between the warehouses. A novel solution approach is developed and applied to a real-life case of a leading European grocery retail chain. The application of the new approach results in cost savings of 6% of total operational costs compared to the present assignment. These savings amount to several million euros per year. In-depth analyses of the results and sensitivity analyses provide insights into the solution structure and the major related issues. |
| Databáze: | OpenAIRE |
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