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2013.Jun

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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2013.Jun

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  1. 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

  2. Contents

  3. Introduction

  4. 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

  5. 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

  6. 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

  7. 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

  8. Research Purposes

  9. Research Process

  10. Literature Review

  11. 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

  12. 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

  13. Literature Review-Storage Assignment Plan

  14. 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

  15. Research Method

  16. Research Method-Problem Definition • Storage management operation →Empirical rule • New SKUs • Return Operator • Empirical rule • Empty storage spaces Supervisor Random Storage

  17. Research Method-Problem Definition

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. Research Method-Storage Assignment Plan • With ABC Class-based storage / Storage layout • Within-aisle • Diagonal • Across-aisle • Complex-aisle

  24. Example Verification

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. Thank you! At LF Logistics, we never lose sight of Our Customers’ Business LF Logistics, Your Best Business Partner

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