2013.Jun
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Transcript of 2013.Jun
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A Study on the Storage Assignment of Distribution Center -The case of Footwear
and Apparel Distribution Center
2013.Jun
Advisor: Chi-Kong Huang,
Ph.D.
Graduate: Siao-Rou Chiang
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Contents
Introduction
Literature Review
Research Method
Example Verification
Expect Conclusions
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Introduction
Background and Motivation
Research Scope
Research Purposes
Research Process
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Background And Motivation
• Distribution Center are the basic warehouse functions – Receiving– Storage– Order picking– Shipping
Warehouse Design
Overall Structur
e
Sizing and Dimensionin
g
EquipmentSelection
Operation Strategy
Warehouse Operation
Receiving Storage Order
picking
Shipping
Performance
Evaluation
Department Layout
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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
50%
20%
15%
10%
5%
TravelSearchPickSetupOther
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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
Inbound,Outbound
Data
SKUs Characteristic Existing
WarehouseEnvironment
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Research Purposes
A case study of an integrated Storage Assignment Plan
• Assignment rule Make the suit classification and assignment of inventory
• Storage policy Discuss the Inventory characteristics of the case study
• Storage Layout Consider of a variety of different storage layouts to reduce the order picking
distance
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Research Purposes
Research
Assignment
rule
Storage
Layout
Class-
based
Storage
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Research Process
Find theQuestion
LiteratureReview
HistoricalData,
AnalyzeSKUs
ConstructionMethods
IntegratedStorage
AssignmentPlan
Reducethe
OrderPicking
Distance
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Literature Review
Warehouse Operation
Storage Assignment Plan
A Case Study
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Literature Review-Warehouse operation
Receiving Storage
Storage assignment
OrderPicking
Shipping
• Pan(2011) indicate the KEY to effective of a Storage Assignment Match the types of Warehouse Storage Assignment
Different Stock Keeping Units (SKUs)
Storage space
Retrieval time
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Literature Review-Storage Assignment Plan
Storage Assignment
Storage PolicyAssignment Rule Storage Layout
Closest open location
Turnover base location
Correlation
EIQ Analyze
Cube-Per-Order
Dedicated Storage
Random Storage
Class-based
StorageRandom within
class
Shared Storage
Diagonal LayoutWithin-aisle LayoutAcross-aisle LayoutPerimeter Layout
Complex-aisle
Layout
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Literature Review-Storage Assignment Plan
Type Author Year Result MethodAssignment
RuleYu-Shan Chang 2002
Using EIQ analyze, design a storage assignment with order picking for
distribution center a integration plan.
EIQ analysis indicators, apply a way of picking and assign way.
Assignment Rule
Chuang et al. 2012
Construct item-associated model, which can effectively improve order
picking efficiency.
Construct clustering and assignment model, compare
with EIQ and Random storage policy.
StoragePolicy
Eldemiret al. 2004
To discuss operating cycle and storage space, the simulation
results, class-based storage suitable for short-cycle products
Compare dedicated storage, random storage and class-based storage in the same environment performance
StoragePolicy
Chanet al. 2011
ABC class-based storage assignment policy can improve the
performance of picking in total order retrieval time.
Using EIQ analyze and COI, AS/RS storage space.
Storage Layout
Petersenet al. 1999
Route policy and Storage Strategies order picking efficiency, storage
layout of the four categories classified storage
Volume class-based storage
Storage Layout
Ashayeriet al. 2002
Proposed three layout of geometry class-based storage, the computing system operating time, the shortest time results in order to combine the
aisle and cross-aisle minimum order picking.
Geometry class-based storage
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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
Inbound Outbound
Outbound
Pallet Rack
Light Duty Rack
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Research Method
Problem Definition
Research Method Structure
Storage Assignment Plan
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Research Method-Problem Definition
• Storage management operation → Empirical rule
Supervisor
New SKUs
Return
Empirical rule Empty storage
spaces
Random Storage
Operator
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Research Method-Problem Definition
Layout
I/O point known,
lower left corner
Existing storage
environment
6000 light duty ranks
SKUs
Total SKUs:5,872Total
Quantity:377,223
Apparel3,246
Footwear1,646
Accessories
980
Data
InboundDuring 2012
OutboundAt 2012-Q4
DistanceSingle order
picking
Picking from one
depot
Nearest Neighbor Algorithm
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Research Method-Research Method Structure
P brand
Footwear AccessoriesApparel
Men Women Kinds
LifestyleMotor sport Golf
SportsBasic
• Generalizing SKUs Hierarchies of SKUs be used for arranging SKUs Association rule mining is conducted among items at the lowest level
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Research Method-Research Method Structure
With ABC class-based Storage Policy
Start
Environmental parameters
Historical data of SKUs
Assignment
Rule
Storage Assignment Program
R
t
tDMinimize1
t : location ; Dt : the distance from location to I/O point
Correlation Inventory ratio EIQ
Analyze
The first phase
Diagonal Within-
aisle
Across-
aisle
Complex-
aisle
The second phase
Class-based storage/
Storage layout
1
2
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Research Method-Storage Assignment Plan• Assignment Rule – Correlation
The order-item association rule, item-index between items i and j as follows.
Items are assigned into groups
P(i∩j) is the number of orders containing items i and j)()(
)(jpip
jipSij
N
a
K
bababXSMaximize
1 1
NbaxN
bab ,...,2,1, 1
1
1
N
bb KY
N..., ,1 ,0, 1,0 baYb
N ..., ,1 ,0, 1,0 baX ab
Subject to :
High Correlation are in the same Group
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
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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
Inbound of quantity, history data
Existing SKUs, Inventory data
The calculated SKUs Inventory Ratio,
(Existing inventory / Inbound of
quantity)
Type : AMore than 50%
Type : B50%-10%
Type : CLess than 10%
constructed classification assign rule
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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 Frequency (IK) Analyze
Item Quantity(IQ)Analyze IQ*IK Analyze
Class A SKUs Class B SKUs Class C SKUs
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Research Method-Storage Assignment Plan
• With ABC Class-based storage / Storage layout
Diagonal Within-
aisle
Across-
aisleComplex-
aisle
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Example Verification
Example Description
Storage Assignment Plan Program 2
Storage Assignment Plan Program 6
Storage Assignment Plan Program 10
Analysis and Comparison
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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
Assignment RuleStorage layout
Correlation Inventory Ratio EIQ Analyze
Diagonal Layout Program1 Program5 Program9
Within-aisle Layout Program2 Program6 Program10
Across-aisle Layout Program3 Program7 Program11
Complex-aisle Layout program4 Program8 Program12
Verify the feasibility of the programs
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Example Verification-Description
Y
I/O
(0,1)
(0,2)
(0,3)
(0,5)
(0,4)
(1,1)
(1,2)
(1,3)
(1,5)
(1,4)
(2,1)
(2,2)
(2,3)
(2,5)
(2,4)
(1,0) (2,0)X
1I/O
3
2
1
4
3
2
5
4
7
6
5
4
3
2
6
5
Item Entry A B C D E F G H I J K L M N O P Q Total
1 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 3
2 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 3
3 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2
4 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 3
5 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 3
6 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 4
7 1 1 1 1 0 0 0 1 0 1 1 1 0 0 0 0 0 8
8 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 4
9 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 4
10 0 0 0 0 0 1 1 1 0 0 0 0 1 0 1 1 0 6
11 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 3
12 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 2
Total 6 1 2 5 3 7 2 2 2 1 1 1 2 3 5 1 1 45
Based on Rectilinear Distance
12 orders in Oct.
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Example Verification-Program 2• Program 2
Correlation * Within-aisle Layout
J
C
M
O
AI/O
Q
L
P
I
G
E
K
B
H
N
D
FA
B
CItem A B C D E F G H I J K L M N O P Q
A - 0.08 0.08 0.33 0.17 0.25 0 0.08 0.08 0.08 0.08 0.08 0 0.08 0.17 0 0
B 0.08 - 0.08 0.08 0 0 0 0.08 0 0.08 0.08 0.08 0 0 0 0 0
C 0.08 0.08 - 0.08 0 0 0 0.08 0 0.08 0.08 0.08 0 0 0 0 0.08
D 0.33 0.08 0.08 - 0.17 0.33 0.08 0.08 0 0.08 0.08 0.08 0 0 0.08 0 0
E 0.17 0 0 0.17 - 0.17 0.08 0 0 0 0 0 0 0 0.08 0 0
F 0.25 0 0 0.33 0.17 - 0.17 0.08 0.08 0 0 0 0.08 0.08 0.17 0.08 0
G 0 0 0 0.08 0.08 0.17 - 0.08 0 0 0 0 0.08 0 0.08 0.08 0
H 0.08 0.08 0.08 0.08 0 0.08 0.08 - 0 0.08 0.08 0.08 0.08 0 0.08 0.08 0
I 0.08 0 0 0 0 0.08 0 0 - 0 0 0 0 0.08 0 0 0
J 0.08 0.08 0.08 0.08 0 0 0 0.08 0 - 0.08 0.08 0 0 0 0 0
K 0.08 0.08 0.08 0.08 0 0 0 0.08 0 0.08 - 0.08 0 0 0 0 0
L 0.08 0.08 0.08 0.08 0 0 0 0.08 0 0.08 0.08 - 0 0 0 0 0
M 0 0 0 0 0 0.08 0.08 0.08 0 0 0 0 - 0.08 0.17 0.08 0
N 0.08 0 0 0 0 0.08 0 0 0.08 0 0 0 0.08 - 0.17 0 0
O 0.17 0 0 0.08 0.08 0.17 0.08 0.08 0 0 0 0 0.17 0.17 - 0.08 0
P 0 0 0 0 0 0.08 0.08 0.08 0 0 0 0 0.08 0 0.08 - 0
Q 0 0 0.08 0 0 0 0 0 0 0 0 0 0 0 0 0 -
The first phas
e
The second phase
Program 2
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Example Verification- Program 6• Program 6
Inventory Ratio * Within-aisle Layout
ItemA B C D E F G H I
Inbound 480 242 65 935 1,515 390 645 611 652
Inventory 478 11 15 146 79 388 42 604 14
Ratio* 99.6% 4.5% 2.3% 15.6% 5.2% 99.5% 6.5% 98.8% 2.1%
Sequence 2 12 16 7 11 3 10 4 17
ItemJ K L M N O P Q
Inbound 857 422 313 738 1498 720 373 449
Inventory 845 15 1 723 14 87 372 13
Ratio* 98.6% 3.5% 3.2% 98.0% 6.9% 12. 8% 99.7% 2.9%
Sequence 5 13 14 6 9 8 1 15
L
B
N
D
PI/O
I
Q
E
G
J
H
C
K
O
M
F
AA
B
C
The first phas
e
The second phase
Program 6
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Example Verification- Program 10• Program 10
EIQ Analyze * Within-aisle Layout
Item IQIQ(%)
(1)IK
IK(%)(2)
IQ*IK(%)(1)*(2)*10
Sequence
A 792 25.30% 6 13.3% 33.7% 1
B 115 3.67% 1 2.2% 0.8% 7
C 736 23.51% 2 4.4% 10.5% 5
D 535 17.09% 5 11.1% 19.% 2
E 112 3.58% 3 6.7% 2.4% 6
F 215 6.87% 7 15.6% 10.7% 4
G 54 1.73% 2 4.4% 0.8% 8
H 31 0.99% 2 4.4% 0.4% 11
I 28 0.89% 2 4.4% 0.4% 12
J 24 0.77% 1 2.2% 0.2% 15
K 21 0.67% 1 2.2% 0.1% 16
L 10 0.32% 1 2.2% 0.1% 17
M 38 1.21% 2 4.4% 0.5% 10
N 28 0.89% 3 6.7% 0.6% 9
O 314 10.03% 5 11.1% 11.1% 3
P 35 1.12% 1 2.2% 0.2% 14
Q 42 1.34% 1 2.2% 0.3% 13
Total 3,130 100% 45 100% 100%
P
I
G
E
D
I/O
L
J
H
N
C
O
K
Q
M
B
F
AA
B
C
The first phas
e
The second phase
Program 10
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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
Random Program 2 Program 6 Program 10
Distance 142 98 126 114
Improve 0 44 16 28
Diff(%) With Random
0% 31% 11% 20%
The program is feasible to reduce picking distance
Diff(%) : (Program-Random)/(Random)
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Expect Conclusions
• Use of all of the existing warehouse SKUs• Data range of 2012-Q4 to 2013-Q2• Using simulation of method
1 月 2 月 3 月 4 月 5 月 6 月
Data collection, coding
Data testing and analysis
Writing and integration
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Thank you!
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Business
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