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Showing papers on "Distribution center published in 2004"


Journal ArticleDOI
TL;DR: Results show that batching of orders yield the greatest savings particularly when smaller order sizes are common, and the use of either a class-based or volume-based storage policy provides nearly the same level of savings as batching, while being less sensitive to the average order size.

375 citations


Journal ArticleDOI
TL;DR: The development and implementation of a system to solve a vehicle routing and delivery scheduling problem at Albert Heijn resulted in savings of 4% of distribution costs in its first year of implementation and is expected to yield 12%-20% savings as the firm expands its usage.
Abstract: Albert Heijn, BV, a supermarket chain in the Netherlands, faces a vehicle routing and delivery scheduling problem once every three to six months. Given hourly demand forecasts for each store, travel times and distances, cost parameters, and various transportation constraints, the firm seeks to determine a weekly delivery schedule specifying the times when each store should be replenished from a central distribution center, and to determine the vehicle routes that service these requirements at minimum cost. We describe the development and implementation of a system to solve this problem at Albert Heijn. The system resulted in savings of 4% of distribution costs in its first year of implementation and is expected to yield 12%-20% savings as the firm expands its usage. It also has tactical and strategic advantages for the firm, such as in assessing the cost impact of various logistics and marketing decisions, in performance measurement, and in competing effectively through reduced lead time and increased frequency of replenishment.

199 citations


Journal ArticleDOI
TL;DR: The simulation results show that CBS provides savings in picker travel over random storage and offers performance that approaches VBS, and offers managers insight for improving distribution center operations.
Abstract: Class‐based storage (CBS) partitions stock‐keeping units (SKUs) into storage classes by demand and randomly assigns storage locations within each storage class area. This study compares the performance implications of CBS to both random and volume‐based storage (VBS) for a manual order picking warehouse. In addition, this study considers the effect of the number of storage classes, the partition of storage classes, and the storage implementation strategy applied in the warehouse. The simulation results show that CBS provides savings in picker travel over random storage and offers performance that approaches VBS. Other operational issues having an impact on warehouse performance are examined. The results offer managers insight for improving distribution center operations.

180 citations


Patent
14 Jul 2004
TL;DR: In this article, the authors present a method of, and systems for, optimizing the allocation of inventory to, and pricing of, goods sold by multiple retail sites, e.g., in a store, chain or other retail enterprise.
Abstract: The invention provides methods of, and systems for, optimizing the allocation of inventory to, and pricing of, goods sold by multiple retail sites, e.g., in a store, chain or other retail enterprise. Such a method includes generating a plurality of possible or 'candidate' allocations of a given inventory among the multiple retail sites. That inventory can be, for example, a supply of the same or like goods at a distribution center that serves the retail sites. Each candidate allocation comprises an assignment of a respective share of that inventory to each of the sites. For each of the candidate allocations, an optimal price of the goods at each of the retail sites is estimated. The optimal price is one that will return an optimal gross margin to the respective site, given its assignment of the respective share of the inventory for the particular candidate allocation. For each of the candidate allocations, a sum is determined of the optimal gross margins across all the retail sites. From substantially all possible allocations, the candidate allocation that results in a largest total optimal gross margin is efficiently chosen.

108 citations


Patent
15 Jun 2004
TL;DR: In this paper, a computer software facility for generating and implementing a temporal map depicting a relationship between locations in a warehouse or distribution center is described, where the facility tracks the movement in the warehouse, including the time it takes for mobile elements to move between a pair of identifiable locations.
Abstract: A computer software facility for generating and implementing a temporal map depicting a relationship between locations in a warehouse or distribution center is described. The facility tracks the movement in the warehouse, including the time it takes for mobile elements to move between a pair of identifiable locations. Based on the tracking, the facility produces movement time records for multiple location pairs in the warehouse. The facility then generates a map of the warehouse. Where information for specific pairs of identifiable locations is not available, the facility may derive movement time information based on actual movement times for related location pairs. The generated map can be used as part of a computer application for tasks such as scheduling the picking of items, evaluating employee performance, organizing the storage of items in the warehouse, and other uses.

95 citations


Journal ArticleDOI
Peter Baker1
TL;DR: In this paper, the authors explore the roles that distribution centers play in order to determine the extent to which modern supply chain theory and distribution center operations are aligned, using a survey.
Abstract: A major focus of modern day logistics is on achieving a higher level of responsiveness to marketplace demand, but with less inventory. Achieving the dual targets of lower cost and higher service has implications for every stage in the supply chain and in particular for distribution center operations. What is the extent to which organizations are adjusting their distribution center operations to match current supply chain concepts? Using a survey, roles that these facilities play are explored in order to determine the extent to which modern supply chain theory and distribution center operations are aligned.

77 citations


Journal ArticleDOI
TL;DR: A polynomial time algorithm is provided for computing the optimal solution of a single item, two-echelon dynamic lot-sizing model with delivery time windows, early shipment penalties, and warehouse space capacity constraints.

70 citations


Posted Content
TL;DR: In this article, the authors analyzed the benefits of FGP for a case study in the Dutch retail sector and showed the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.
Abstract: Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.

55 citations


Journal ArticleDOI
TL;DR: A novel bilevel programming model is presented that minimizes the cost of the total distribution network and at the same time balances the workload of each DC for the delivery of products to its customers.
Abstract: Traditional approaches to a location allocation problem have focused on the allocation of customers to a distribution center (DC) according to some arbitrary geographical boundaries (e.g., administrative zones and census districts), which usually incurs underuse or overcrowding of these centers. Location allocation with balancing requirements (e.g., balanced workload of service among DCs) has therefore been addressed. A distribution strategy with balanced-workload allocation aims to be cost-efficient and to improve customer service. A novel bilevel programming model is presented that minimizes the cost of the total distribution network and at the same time balances the workload of each DC for the delivery of products to its customers. A genetic algorithm-based approach was developed to cope with the bilevel model, and it was tested on a best realistic data set. In addition to the most cost-efficient design, the bilevel programming model presents a picture to decision makers that shows the trade-off between the objective of cost minimization and the balancing requirements. It is also shown that the bilevel model offers a flexible framework that allows the incorporation of more requirements and constraints if necessary.

39 citations


Patent
24 Jun 2004
TL;DR: In this article, a method and system for forecasting product order quantities required to meet future product demands for a retail distribution center or warehouse is presented, which includes the steps of determining for each one of a plurality of retail stores, a long range order forecast for a product sold by said retail store; accumulating said long range orders for said plurality of retailers to generate a distribution center demand forecast for said retail distribution centre; comparing said distribution center forecast with current and projected future inventory levels at said distribution centre of said product; and determining from distribution center inventory levels suggested order quantities necessary for maintaining
Abstract: A method and system for forecasting product order quantities required to meet future product demands for a retail distribution center or warehouse. The method includes the steps of determining for each one of a plurality of retail stores, a long range order forecast for a product sold by said retail store; accumulating said long range order forecasts for said plurality of retail stores to generate a distribution center demand forecast for said retail distribution center; comparing said distribution center demand forecast with current and projected future inventory levels at said distribution center of said product; and determining from distribution center demand forecast and said current and projected future inventory levels suggested order quantities necessary for maintaining a minimum inventory level sufficient to meet said distribution center demand forecast for said product.

29 citations


Journal ArticleDOI
TL;DR: This article presents a methodology to help determine candidate locations and then conduct a financial risk analysis to determine the ideal location of a new facility.
Abstract: Facility location problems have become a more strategic decision than just finding the lowest cost space to house a company's product. When choosing the placement of a distribution center, a company must weigh the new freight costs and the cost of a new or leased structure against its necessary service levels, as well as several other factors. Companies can also save on logistics costs in choosing the correct location by incorporating the inherent risk and variability that are involved in a facility location decision. However, in reality, most companies do not analytically consider risk and variability in choosing a location. This article presents a methodology to help determine candidate locations and then conduct a financial risk analysis to determine the ideal location of a new facility.

01 Jan 2004
TL;DR: In this article, the authors present various integrated location inventory models involving a single supplier and multiple retailers, and compare the total costs resulting from using these two models, and conclude that the value of allowing multi-sourced retailers increases as the transportation costs become a larger portion of the total logistics costs.
Abstract: In this dissertation, we present various integrated location inventory models involving a single supplier and multiple retailers. The first part of the thesis focuses on two capacitated location models with risk-pooling that handle inventory management and capacity issues in a new and more complete way than do the existing location models. The second part of the thesis presents an analytical location and an analytical location-inventory model. This second part also analyzes the benefits of integrating the strategic location decisions with tactical inventory decisions. The first capacitated location-inventory model we introduce in this dissertation assigns each retailer to a single distribution center. We formulate this model as a nonlinear integer program in which the objective function is neither concave nor convex. Feasible solutions for this problem cannot always be found easily. The second model we introduce allows the demands of a retailer to be served by multiple distribution centers. This model is formulated as a nonlinear mixed-integer program. Both models are solved using Lagrangian relaxation. We compare the total costs resulting from using these two models, and conclude that value of allowing multi-sourced retailers increases as the transportation costs become a larger portion of the total logistics costs. The analytical models we introduce are approximations of the classical uncapacitated fixed-charge location and the uncapacitated location model with risk-pooling. We perform sensitivity analysis using these approximation models and conclude that savings from integration of location and inventory decisions are significant when the inventory costs are a significant portion of the total logistics costs.

Proceedings ArticleDOI
05 Dec 2004
TL;DR: A framework is developed to allow a broad range of simulation systems to share information, including inputs, models, and results that facilitates the combination of standalone scenarios into one master scenario where the overall chain-of-events can be analyzed and optimized.
Abstract: As the U.S. Department of Homeland Security works to create an integrated emergency response system, it is evident that computer-based solutions can support this process. Individual commercial simulation packages and databases can provide a partial solution, but are not easily integrated to provide a comprehensive analysis of the events. To achieve model and domain knowledge integration, an analysis framework is developed to allow a broad range of simulation systems to share information, including inputs, models, and results. This analysis framework facilitates the combination of standalone scenarios into one master scenario where the overall chain-of-events can be analyzed and optimized. This paper describes a framework used in the simulation of an anthrax incident. The simulation modeled State, City, and Department of Health EOC processes executed under the Incident Command System (ICS). Hospital and distribution center models were integrated to add the effects and impact of the general population into the scenario.

Patent
25 Jun 2004
TL;DR: In this paper, the authors present a system and methods for delivering video programs to a video distribution center that provides broadcast programming and store-and-forward programming, such as video on demand based on video programming recorded at the distribution center.
Abstract: Embodiments of the present invention are systems and methods for delivering video programs to a video distribution center. An embodiment of the invention is a method for delivering video programming to a distribution center that provides broadcast programming and store-and-forward programming, such as video on demand based on video programming recorded at the distribution center. The method comprises sending a plurality of video programs to the distribution center. Wherein, the plurality of video programs is to be provided as broadcast programming by the distribution center. The method also comprises sending ancillary data to the distribution center. The ancillary data includes business rules that include permission for the distribution center to record one or more selected video programs of the plurality of video programs.

Patent
02 Apr 2004
TL;DR: In this article, a map distribution center accumulates the map information suitable to a vehicle type, and the map distribution centre distributes the map content suitable to the vehicle, when the navigation system requires the map contents to be distributed to the distribution center, together with the identification code.
Abstract: PROBLEM TO BE SOLVED: To provide a map information providing system capable of reducing a communication volume of map information required for a user so as to be quickly provided, in a navigation system for a vehicle or a navigation system for a pedestrian. SOLUTION: The navigation system has an identification code intrinsic to each, and a map distribution center for distributing the map information stores the identification code, and vehicle information based on a using situation of the navigation system having the identification code. The map distribution center accumulates the map information suitable to a vehicle type, and the map distribution center distributes the map information suitable to the vehicle, when the navigation system requires the map information to be distributed to the map distribution center, together with the identification code. The map information suitable to the vehicle type is prepared based on traffic histories in the past. COPYRIGHT: (C)2006,JPO&NCIPI

01 Dec 2004
TL;DR: A case study on the supply of parts to three plants of K-automobile manufacturing company using the JIT production system and the importance of delivering small quantities of parts frequently and quickly on time is presented.
Abstract: S-Distribution Center supplies parts to three plants of K-automobile manufacturing company. Since the threeplants employ the JIT production system, it is important for S-Distribution Center to deliver small quantities ofparts frequently and quickly on time. This paper presents a case study on the im...

Proceedings ArticleDOI
26 Aug 2004
TL;DR: In this article, a genetic algorithm combining mechanism of simulated annealing that is proved effective in dealing with the NP-hard problem is proposed, where the design tasks of this problem involve the choice of distribution center to be opened and the optimal assignment of product flow between suppliers and customers via distribution centers to meet the demand with minimum cost.
Abstract: The location of distribution center (DC) is one of the most important decision issues for logistics managers. In this paper, 0-1 mixed integer linear programming model of location of distribution center of two-stage logistics chain network is given. The design tasks of this problem involve the choice of distribution center to be opened and the optimal assignment of product flow between suppliers and customers via distribution centers to meet the demand with minimum cost As the solution method, a genetic algorithm combining mechanism of simulated annealing that is proved effective in dealing with the NP-hard problem is proposed.

Patent
15 Jul 2004
TL;DR: In this article, the authors propose an information distribution center to provide advertisements and ambient information meeting the potential needs of a user, where the user's driving tendency is detected, interest and driving tendency are grasped, and the user information is transmitted to the information distribution centre.
Abstract: PROBLEM TO BE SOLVED: To enable an information distribution center to provide advertisements and ambient information meeting potential needs of a user. SOLUTION: Retrieval results of a facility retrieving part 5 are stored in a number of retrievals storage area 7a, a retrieval frequency calculating part 10 calculates genres with a high retrieval frequency, a user information preparing 11 selects a plurality of genres with a high retrieval frequency to prepare user information, and the user information is sent from a user information transmitting part 12 and a communicating part 13 to the information distribution center 15 through Internet 14. In addition, detection results of a present position detecting part 3 are stored in a traveling region storage area 7b, a region and a place where the user travels are detected, data such as a traveling speed, an increase or decrease of speed, an angular velocity and a travel distance from a sensor mounted on a vehicle are stored in a travel information storage area 7c, the user's driving tendency is detected, the user's interest and driving tendency are grasped, and the user information is transmitted to the information distribution center 15. COPYRIGHT: (C)2004,JPO&NCIPI

01 Jan 2004
TL;DR: In this paper, a new site selection method, using BP artificial neural network, where the data derived from a fuzzy appraisal matrix is processed, can make the site selection in an objective manner and avoid the bias brought up by traditional algorithm.
Abstract: Distribution centers' site selection, involving numerous elements,is crucial to logistics planning. Traditional algorithm neglects some important qualitative considerations. This paper proposes a new site selection method, using BP artificial neural network, where the data derived from a fuzzy appraisal matrix is processed. The new method can make the site selection in an objective manner and avoid the bias brought up by traditional algorithm. Practical examples are cited in the paper to illustrate the process.

Patent
17 Mar 2004
TL;DR: A computer implemented method of product ordering and inventory repositioning for a promotion in a supply chain management system utilizing a network is provided in this paper, where a computer calculation is caused of a product demand level for stores associated with at least one distribution center for the current product sales promotion based on an outlook model and the point of sale data.
Abstract: A computer implemented method of product ordering and inventory repositioning for a promotion in a supply chain management system utilizing a network is provided. The method comprises obtaining via the network from a plurality of stores in a first region, each store associated with a respective distribution center within the first region, point of sale data for a short period of time relative to a length of time allotted for a current product sales promotion. A computer calculation is caused of a product demand level for stores associated with at least one distribution center for the current product sales promotion based on an outlook model and the point of sale data. A computer calculation is caused of a product amount for the at least one distribution center based at least in part on the product demand level for stores associated with the at least one distribution center. An electronic action is taken based on the product amount for the at least one distribution center.

Journal Article
TL;DR: This model can expand the P-median location model by bringing in the costs of maintaining commodity, handling commodity and building distribution center, and determine the quantity and location of distribution center and relationship between users and distribution center.
Abstract: Economic globalization, the development of information technology and electronic commerce have a profound impact on logistics, and give rise to the emergence of new characteristics of logistics. These characteristics, in turn, pose a higher and newer demand on the study of location selection of distribution center. In this paper, the optimized location model is built on the base of the illustration about GIS network analysis and the analysis of P-median location model. Through bringing in the costs of maintaining commodity, handling commodity and building distribution center ,this model can expand the P-median location model. Meanwhile, by means of minimizing total cost, it can also determine the quantity and location of distribution center, as well as relationship between supplying spots and distribution center, and relationship between users and distribution center.

Posted Content
06 Aug 2004
TL;DR: Extensive numerical results for a large real-life case study of the Dutch retail distribution are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation of FGP.
Abstract: textFactory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.

Journal Article
TL;DR: A bilevel programming model is presented with the aim at minimum total cost to optimize the scale and position of the logistics terminals in terms of logistics cost.
Abstract: The planning and overall arrangement of the logistics network not only influences the business activities of enterprises, but also influences the traffic functions of the city. Within a logistics operation cycle, the relevant content of the logistics cost has been described with the concept of the broad sense expenses to optimize the scale and position of the logistics terminals in terms of logistics cost. Taking into account the relationships of the distribution center layout and the service expenditure, a bilevel programming model is presented with the aim at minimum total cost. Afterwards, a genetic algorithm is used to get an approximate optimal solution. The simulation result of a giving instance has demonstrated the practical value and validity of the model.

Patent
28 Oct 2004
TL;DR: In this paper, a distribution center and a plurality of user terminals are mutually connected through the Internet, and banking facilities such as credit card centers are connected through private lines to the distribution center.
Abstract: PROBLEM TO BE SOLVED: To provide a system for performing distribution of digital contents well SOLUTION: A distribution center 2 being a content server and a plurality of user terminals 3A, 3B-3n are mutually connected through the Internet 1 Moreover, a terminal 4 of a content holder being a copyright holder of digital contents of a live relay and a shop front terminal 5 for performing registration of initial users, direct sales or the like are connected to the Internet 1 In addition, prescribed recording media 6 are sold at shops, and control of log-in to the system and management of accounting are performed by inserting the recording media 6 into the user terminals 3A, 3B-3n Moreover, banking facilities 8 such as credit card centers are connected through private lines 7 to the distribution center 2 In addition, distribution or the like of contents is performed between the terminal 4 of the contents holder and the distribution center 2 through the private lines 7 COPYRIGHT: (C)2005,JPO&NCIPI

Journal Article
TL;DR: In this paper, a model of logistics center site selection is set up, which aims at the utmost economic benefits, and the confirmation of the parameters and calculation processes are further discussed, this model can be applied to the policy-making and the optimization on this issue.
Abstract: The rational layout and location of logistics center has a great impact on thefunction and overall profit of it. An introduction to the general ways of how tochoose the location of distribution center is made and also the weak points ofthe current ones are pointed out. The main factors are decided and the general principles are established through the analysis. The model of logistics center site selection is set up, which aims at the utmost economic benefits. Besides, theconfirmation of the parameters and calculation processes are further discussed.This model can be applied to the policy-making and the optimization on this issue.

Journal Article
TL;DR: In this paper, the layout problem in distribution center under the condition of its total area was determinate, and an optimization model was presented and a simulated annealing algorithm was developed for the model.
Abstract: The layout problem in distribution center under the condition of its total area was determinate was studied in the paper. Based on the function of each functional area in distribution central, the material flows were described as six representative flows. An optimization model was presented and a simulated annealing algorithm was developed for the model. Application denoted the optimization method operated rapidly and the result was rational, so it provides scientific guidance to the limited layout problem in the distribution center.

Journal Article
Du Min1
TL;DR: This model can accurately fix to the number, position and scale of the distribution center in terms of the position of logistics center and road network condition which have already been known, and has important theoretical value and practical meaning for planning manufacturing enterprise's distribution system in large range.
Abstract: Authors discuss the importance of the logistics distribution center allocation plan of product sale,present the shortage of the existing mathematical model of distribution center allocation plan,then,put forward the method of distribution center allocation plan based on the theory of economics scale.Considering economics scale of distribution center,authors establish the mathematical model of determining distribution center location scheme.The model's target function is minimal total expenses,and it can make use of the ergodic method to proceed the model.Through example certification, it proves that after applying economics scale theory to determine the number's range of distribution center,this model can accurately fix to the number, position and scale of the distribution center in terms of the position of logistics center and road network condition which have already been known, and it also has important theoretical value and practical meaning for planning manufacturing enterprise's distribution system in large range.

01 Jan 2004
TL;DR: There is a need for a “Synchronized Logistics Planning and Control System” to closely coordinate purchasing, sales and logistics departments’ decision-making processes and the key characteristics of the developed concept are integrate process approach, robustness and flexibility to handle both demand and supply uncertainties.
Abstract: This paper presents the challenges of distribution facilities coping with high uncertainties in demand and supply. Then a case is presented to highlight the uncertain distribution environment and to introduce an indicator to measure the nature of problems facing distribution centers. It is shown that there is a need for a “Synchronized Logistics Planning and Control System” to closely coordinate purchasing, sales and logistics departments’ decision-making processes. The concept of such a system is presented and the key characteristics of the developed concept are integrate process approach, robustness and flexibility to handle both demand and supply uncertainties. The concept enables distributors to move from a buy-hold-sell distribution model to a sell-source-ship model and speed the movement of goods through the distribution center.

Journal Article
TL;DR: In this article, a single distribution center was used to improve the control of a suite of convenience storages in COUCHE-TARD, which enabled the company to better control the REPLENISHMENT of its CONVENIENCE STORES.
Abstract: SUBTITLE: BY ESTABLISHING A SINGLE DISTRIBUTION CENTER, COUCHE-TARD WAS ABLE TO BETTER CONTROL REPLENISHMENT OF ITS CONVENIENCE STORES.

Patent
26 Feb 2004
TL;DR: In this article, the authors proposed a commodity selling system consisting of a sales company server, an agency terminal, a distribution center terminal installed in a distribution centre delivering the commodities to the agency, a delivery company terminal delivered the commodities in the delivery company to the distribution center, a network connecting the sales company servers and each terminal each other, a storage box distinguishing member for specifying storage box, and a commodity distinguishing members for specifying a kind of the commodities stored in the storage box in the distribution box distributed between the distribution centre and a user while storing the commodities.
Abstract: PROBLEM TO BE SOLVED: To provide a commodity selling system capable of properly selling a plurality of kinds of commodities daily used. SOLUTION: The commodity selling system comprises a sales company server, an agency terminal, a distribution center terminal installed in a distribution center delivering the commodities to the agency, a delivery company terminal installed in a delivery company delivering the commodities to the distribution center, a network connecting the sales company server and each terminal each other, a storage box distinguishing member for specifying a storage box, and a commodity distinguishing member for specifying a kind of the commodities stored in the storage box in the storage box distributed between the distribution center and a user while storing the commodities. The sales company server comprises a function receiving storage box distinguishing information sent from the agency terminal and predetermined commodity using amount information, a function computing a stock situation of each commodity in the distribution center on the basis of the received storage box distinguishing information and commodity using amount information, and a function sending order information of the commodities to the delivery company terminal on the basis of the computed stock situation. COPYRIGHT: (C)2004,JPO