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A Study on the Storage Assignment of Distribution Center -The case of Footwear and Apparel Distribution Center. Advisor: Chi-Kong Huang, Ph.D . Graduate: Siao-Rou Chiang. 2013.Jun. Contents. Introduction. Background And Motivation. Distribution Center are the basic warehouse functions
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A Study on the Storage Assignment of Distribution Center -The case of Footwear and Apparel Distribution Center Advisor: Chi-Kong Huang, Ph.D. Graduate: Siao-Rou Chiang 2013.Jun
Background And Motivation • Distribution Centerare the basic warehouse functions • Receiving • Storage • Order picking • Shipping Warehouse Design Overall Structure Sizing and Dimensioning Equipment Selection Operation Strategy PerformanceEvaluation Warehouse Operation Receiving Storage Order picking Shipping Department Layout
Background And Motivation • Storage • How Much Quantity ? • How Frequently ? • Where Should Stored ? • Chan et al.(2010) indicates pickers have to travel long distance and spend more time on picking • Improve efficiency • Reduce the moving distance
Research Scope • In this study, a case study is proposed • Case:LF Logistics of P brand supplier • SKUs Classify:Apparel、Footwear and Accessory • Characteristic:Multi-SKUs with low quantity, Periodicity, Fashion-like Products. • Historical Data:Inbound and Outbound Date during 2012 – Q3,Q4
Research Purposes • A case study of an integrated Storage Assignment Plan • Assignment rule • Make the suit classification and assignment of inventory • Storage policy • Discussthe Inventory characteristics of the case study • Storage Layout • Consider of a variety of different storage layouts to reduce the order picking distance
Literature Review-Warehouse operation • Pan(2011) indicate theKEYto effective of a Storage Assignment • Match the types of Warehouse Storage Assignment • Different Stock Keeping Units (SKUs) • Storage space • Retrieval time
Literature Review-Storage Assignment Plan • Storage Assignment • Assignment Rule • Storage Policy • Storage Layout • Closest open location • Turnover base location • Correlation • EIQ Analyze • Cube-Per-Order • Dedicated Storage • Random Storage • Class-based Storage • Random within class • Shared Storage • Diagonal Layout • Within-aisle Layout • Across-aisle Layout • Perimeter Layout • Complex-aisle Layout
Inbound Outbound Literature Review- A Case Study • P-Brand Supplier • Operation:Inbound、Storage、Order Picking、Return • By Carton-Pallet Rack (Two Pallets Type) • By Piece - Light Duty Rack Pallet Rack Light Duty Rack Outbound
Research Method-Problem Definition • Storage management operation →Empirical rule • New SKUs • Return Operator • Empirical rule • Empty storage spaces Supervisor Random Storage
Research Method-Research Method Structure • Generalizing SKUs • Hierarchies of SKUs be used for arranging SKUs • Association rule mining is conducted among items atthe lowest level P brand • Apparel • Footwear • Accessories • Men • Women • Kinds • Basic • Sports • Motor sport • Lifestyle • Golf
Research Method-Research Method Structure Start • Environmental parameters The first phase • Historical data of SKUs Correlation • Inventory ratio • EIQ Analyze With ABC class-based Storage Policy • Assignment Rule 1 The second phase • Class-based storage/ • Storage layout 2 • Diagonal • Within-aisle • Across-aisle • Complex-aisle • Storage Assignment Program • t : location;Dt:the distance from location to I/O point
Research Method-Storage Assignment Plan • Assignment Rule–Correlation • The order-item association rule, item-indexbetween items i and j as follows. • Items are assigned into groups P(i∩j) is the number of orders containing items i and j HighCorrelation are in the same Group Subject to: Item can be clustered in one group only Limits that the number of clusters Binary decision variables, Xab, item a association to cluster b, Yb point of cluster,There was 1, and 0 otherwise
Inbound of quantity, history data • Existing SKUs, Inventory data • Type:C • Less than 10% • Type:A • More than 50% • Type:B 50%-10% Research Method-Storage Assignment Plan • Assignment Rule-Inventory Ratio • Cycle of product :one season • With ABC class • Differences between the seasons • Seasonal • Off-season • Select existing SKUs • The calculated SKUs Inventory Ratio, • (Existing inventory / Inbound of quantity) • constructed classification assign rule
Research Method-Storage Assignment Plan • Assignment Rule-EIQ Analyze • Consider both the Quantity and Frequency • With ABC [Chan, 2011] • A:60% of the total index of SKUs • B:30% of the total index of SKUs • C:10% of the total index of SKUs • Historical order data • Construct EIQ analyze • Item Quantity(IQ) • Analyze • Item Frequency (IK) Analyze IQ*IKAnalyze • Class A SKUs • Class B SKUs • Class C SKUs
Research Method-Storage Assignment Plan • With ABC Class-based storage / Storage layout • Within-aisle • Diagonal • Across-aisle • Complex-aisle
Example Verification-Description • Simplify Data and Layout in case • Single order picking • Nearest Neighbor Algorithm • Storage Assignment Plan program • The First Phase: 3 of Assignment Rule • The Second Phase:4 of Storage layout Verify the feasibility of the programs
7 6 5 6 5 5 4 4 4 3 3 3 2 2 2 1 I/O 1 (2,5) (1,5) (0,5) (2,4) (1,4) (0,4) (2,3) (1,3) (0,3) (2,2) (1,2) (0,2) (2,1) (1,1) (0,1) I/O (1,0) (2,0) Example Verification-Description 12 orders in Oct. Y Based on Rectilinear Distance X
J K Q C B L C H P M B N I O D G A A I/O F E Example Verification-Program 2 • Program 2 • Correlation * Within-aisle Layout The second phase The first phase Program 2
L C I C K Q B O E N B M G D F J P A I/O A H Example Verification- Program 6 • Program 6 • Inventory Ratio * Within-aisle Layout The second phase The first phase Program 6
P K L C Q J I M H G B B N E F C D A I/O A O Example Verification- Program 10 • Program 10 • EIQ Analyze * Within-aisle Layout The second phase The first phase Program 10
Example Verification-Analysis and Comparison • Existing state as Random Storage • Random vs. Program 2 vs.Program 6 vs.Program 10 • With 12 orders, 17 items Diff(%) :(Program-Random)/(Random) The program is feasible to reduce picking distance
Expect Conclusions • Use of all of the existing warehouse SKUs • Data range of 2012-Q4to 2013-Q2 • Using simulation of method Writing and integration Data testing and analysis Data collection, coding
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