Showing papers on "Distribution center published in 2010"

Incorporating location, routing and inventory decisions in supply chain network design

Abstract: This paper for the first time presents a novel model to simultaneously optimize location, allocation, capacity, inventory, and routing decisions in a stochastic supply chain system. Each customer’s demand is uncertain and follows a normal distribution, and each distribution center maintains a certain amount of safety stock. To solve the model, first we present an exact solution method by casting the problem as a mixed integer convex program, and then we establish a heuristic method based on a hybridization of Tabu Search and Simulated Annealing. The results show that the proposed heuristic is considerably efficient and effective for a broad range of problem sizes.

Logistics service capabilities and firm performance of international distribution center operators

Abstract: This study empirically evaluated the crucial logistics service capabilities and firm performance of international distribution center operators in Taiwan. Three critical logistics service capabilities were identified based on factor analysis: (a) innovation capability, (b) customer response capability, and (c) flexible operation capability. Cluster analysis was subsequently used and based on their mean scores in the three logistics capability dimensions, respondents' firms were assigned to one of three groups, namely: customer response and flexible operation capabilities-oriented firms, customer response and innovation capabilities-oriented firms, and customer response capability-oriented firms. Findings indicated that customer response and innovation capabilities-oriented firms had the best firm performance, followed by customer response and flexible operation capabilities-oriented firms and customer response capability-oriented firms.

An integrated supply chain design model with random disruptions consideration

Abstract: This paper investigates a supply chain design problem where distribution centers are subject to random disruptions. As a result of disruptions, one or more of the distribution centers may fail to serve the customers. It is assumed that customers have random demands; thus, each distribution center maintains some amount of safety stocks in order to provide suitable service level for the customers it serves. The proposed model for this study is formulated as a nonlinear integer programming to minimize the expected total cost which includes costs of location, inventory, transportation and lost sales. The model simultaneously determines the location of distribution centers and the allocation of customers to distribution centers. In order to solve the resulted mathematical model, an efficient solution approach based on genetic algorithm is developed. Finally, computational results for several instances of the problem are presented to demonstrate the effectiveness of the proposed algorithm. Key words: Supply chain management, inventory management, disruptions, location model.

Supply chain design: A holistic approach

Abstract: Local considerations are one of the major pitfalls in designing, operating and managing systems. As such are the ''Supply Chain design decisions'', hence we have tried to incorporate systems thinking approach, and in particular the ''Theory of Constraints'', into the problem of ''Locating a new Distribution Center'' among a producer and a set of existing retailers. While customers face known random demand, we look for the least cost location candidate in a plane with direct shipping. Usefulness of an equity function to balance the inventory levels at retail shops is also discussed. The model is finally reduced to a single nonlinear objective and for a hypothetical numerical example it is solved by Particle Swarm Optimization method.

System and Method for Vendor and Customer Management in a Supply Chain

Abstract: A method of managing a supply chain comprises providing at a customer interface module a plurality of order fulfillment options to a customer, and receiving from the customer a selection of a particular order fulfillment option. The method also includes receiving a first order from the customer, and receiving a first inventory status from a first distribution center. A first distribution center sends a first product to the customer in response to determining that the particular order fulfillment option comprises a fill-partial order fulfillment option, and a duration between the time that the first product is directed to be sent and the time when the first product is actually sent is determined. An alert is generated if the duration is greater than a predetermined duration.

Can local food go mainstream

Abstract: The supermarket is one of the 20th Century’s most important marketing innovations. The concept of the supermarket emerged in the 1930s, and supermarkets came to dominate food retailing in the two decades immediately after World War II. Made possible by rapid suburbanization of American cities and expansion of ownership of automobiles and refrigerators, supermarkets transformed business processes and competition for customers at the retail level. They also fostered expansion and new efficiencies for wholesalers and created new opportunities for food manufacturers to develop products for mass audiences. The basic hub and spoke distribution system that has evolved for supermarkets is built around large distribution centers located near interstate highways. These distribution centers receive full semi-trailer loads of product from suppliers and then send full semi-trailers out to individual stores daily or several times per week. Loads sent to stores are comprised of relatively small quantities of thousands of individual SKUs, or stock keeping units, needed to replenish the inventory of tens of thousands of SKUs stored on self-service shelves in a typical store. This system, which is supplemented by deliveries from specialty distributors and direct store deliveries by some suppliers, economizes on transportation and labor. With electronic transmission of orders and payment and computer-based tools that assist with ordering, pricing, and inventory management, this distribution system also keeps transaction costs to a minimum. It is ideally suited for sourcing consistent quality products at low cost from wherever they are available and so has been an integral part of an increasingly national and global food system. This mainstream supermarket distribution system favors large scale suppliers and facilitates long distance movement of products. Supermarket wholesale and retail companies usually prefer to work with a small number of large, reliable suppliers. At the same time, this system is remarkably resilient and quick to adapt. Can it be an effective channel for meeting the rapidly growing demand for local food products? Are there meaningful, long run prospects for a significant “relocalization” of supermarket offerings? While definitive answers to these questions are not yet apparent, there is emerging evidence that helps clarify how the relationship between the local foods movement and the supermarket industry may evolve.

The hybrid planning algorithm for the distribution center operation using tabu search and decomposed optimization

Abstract: Distribution center operation planning problem to determine the facility locations and the distribution plans is studied in this paper under the single sourcing constraint, in which each customer can be served by a single supplier. Distribution centers can be installed or changed easily using the outsourcing with a reasonable setup cost, to meet the dynamically changing demand of customers, compared with the plants which are usually run for the long time period with a heavy setup cost. The objective is to minimize the sum of transportation, the facility setup and the product handling cost. A mixed integer programming model for the distribution center operation planning is suggested. For the purpose of practical implementation, the hybrid heuristic based on the tabu search and the decomposed optimization is proposed with the priority rule designed by using the so-called Unit Cost Ratio (UCR). The performances of the heuristic algorithms are evaluated by the comparison with the optimal solution or the best solutions found within the computational time limit by CPLEX.

C302-model gateway control unit

Abstract: The invention relates to a C302-model gateway control unit characterized in that a C302 model adopts a bus structure with three CANs (Controller Area Networks) comprising a power CAN, a comfortable information CAN and an instrument diagnosis CAN, and the speeds are respectively 500K, 100K and 500K; a single gateway is designed as a route distribution center of messages and signals according to the Baud rate differences of the signals and the sharing and demands of the signals on each CAN; the route transformation is carried out on the messages with different speeds, the signals are packed and unpacked, and meanwhile, the route distribution center is also the network managing and monitoring center of each CAN bus; the time, the priority and the like of the information interaction among CAN systems are reasonably distributed; the evolution of the bus network from one CAN to a plurality of CANs and from an non-independent gateway to a central gateway is necessarily realized by a route device, and in other words, the development of the gateways is the necessary product for the updating and the function clarification of a network topology, thereby reducing the bus load rate of each subnetwork.

Center as a tool for logistics activities in support of the company on the example of SME's enterprise X

Abstract: Costs are in all aspects of each company. Some of the most noticeable costs of business are the costs associated with storage, transportation and distribution the products of the company. In this case a significant impact on reducing these costs is to use the services of logistics centers, specializing in trading all kinds of goods. The purpose of this article is to show how the transfer of logistical supplies from the distribution center logistics contributes to a significant reduction in costs incurred by the company and streamline its operation.

Research on Logistics Network Infrastructure Based on HCA and DEA-PCA Approach

Abstract: Logistics Network Infrastructure (LNI) is an important area of Logistics Infrastructure Capability (LIC). The connotation of LNI is analyzed in this paper. Compared with the extensive research on LNI in developed world, empirical work is still rare in China. In this paper the theory of LNI is firstly overviewed. Then a new evaluation index system for LNI evaluation is set up which contains factors that reflect economic development level, transportation accessibility and turnover volume of freight traffic. Thirdly, an empirical study is carried out by using Hierarchical Cluster Analysis (HCA), Data Envelopment Analysis (DEA) and Principal Component Analysis (PCA) approach to classify LNI into 4 clusters for 25 cities in Yangtze River Delta Region of China. Fourthly, according to the characteristics of the 4 clusters, suggestions are proposed for improving their LNI. Finally, after comparing different LNI of 25 cities in Yangtze River Delta Region of China, this paper focuses on that different LNI including Hub, Central Distribution Center & Cross Docking Center, Regional Distribution Center or Distribution Center should be build reasonably in order to meet the customer's requirement in the 4 different cluster cities.

Study and application of Center-of-Gravity on the location selection of distribution center

Abstract: This article focuses on introducing the study and application of Center-of-Gravity on the location selection of single distribution center, and uses the winQSB software to solve corresponding issues, Then improves the model and puts forward an improved-gravity method, and finally expands the application of Center-of-Gravity, puts forward algorithm thinking of multiple Center-of-Gravity approach, which appropriates in the location selection of multiple distribution center.

Information collection/distribution system

Abstract: PROBLEM TO BE SOLVED: To collect information on charging equipment in real time.SOLUTION: An information collection/distribution center 12 collects information on charging equipment from an on-vehicle unit of each of vehicles which have used a charging stand 11 or other charging equipment. One embodiment of information collection/distribution system 1 in this invention collects information on operation state including installation state and usage state of a charging equipment installed at the charging stand 11 from the charging stand 11 connected to a communication network 16. The other embodiment of information collection/distribution system collects information including the vehicle location and the charging state from each of vehicles which have used an charging equipment. The information collection/distribution center in each embodiment stores the operation information on the operation state of each charging stand based on the collected information and distributes it to on-vehicle units 14 or the like.

Method and system for distributing inventory of a replaced or discontinued distribution center product

Abstract: A method and system for distributing inventory of a replaced or discontinued product from a warehouse or distribution center to a plurality of stores. The method optimally distributes the inventory of the replaced or discontinued product from the distribution center, keeping in mind the demand for a replacing product at the stores supported by the distribution center. The described system and method calculates replaced (old) and replacing (new) store product order quantities; rounds the replaced and replacing product order quantities if necessary due to product packaging; and ensures that the aggregate of the replaced product order quantity does not exceed distribution center on-hand inventory for the replaced product.

Flexibility in Port Selection: A Quantitative Approach Using Floating Stocks

Abstract: textPorts provide a number of logistical choices concerning storage, onward transport, and postponement. We investigate the routing flexibility offered by ports with a central location with respect to the hinterland. This flexibility is investigated using an illustrative case in which a number of alternative strategies are evaluated by means of simulation. Detailed cost data was used for the illustrative case. The combination of a simulation model and detailed cost data allows us to quantify the value of the rerouting flexibility. A combination of using regional distribution centers and a European Distribution Center results in the lowest cost per container.

Distribution center distribution-line self-propelled replenishing-car device

Abstract: The utility model discloses a distribution center distribution-line self-propelled replenishing-car device. A replenishing-car-driving device consisting of a motor and a gear set is arranged on a running platform which consists of a support, a rail, a power-supplying copper strip and a rack; a replenishing car is driven to run on the rail; and by adopting a laser-ranging sensor and a programmable logical controller to control the movement of the replenishing-car on the rail, the replenishing-car comprises a chassis, a linear guide rail, a ball screw, a movable bottom plate, a clapboard set, a motor, an article driving lever driven by a gear chain and an article supporting strip. Wireless communication between a vehicle-mounted control device and a master control computer is formed by adopting a wireless communication modem, and receives replenishing instructions, and controls replenishing movement. The replenishing-car device matched with a sorting-distribution line for application can complete replenishing from articles to the sorting-distribution line automatically when being applied by the distribution center, thus improving running efficiency of the sorting-distribution line, reducing the labor intensity, improving distribution operation accuracy and work efficiency and strengthening distribution capability of the distribution center.

Fuzzy Cluster Analysis of Regional City Multi-level Logistics Distribution Center Location Plan

Abstract: Establish the cities multi-level logistics distribution center in the region to improve the flow efficiency and economic benefits, enhance regional competitiveness, promote the rational allocation of regional resources and effective use has an important role. This article use fuzzy clustering analysis method to study. First discusses the preparations of fuzzy clustering analysis. includes the construction of influence Factors indicator system, determine the factor weight set, quantify the value of level 2 indicators, calculate the value of level 1 indicators, etc. Then study the fuzzy clustering analysis method and steps, including data standardization, the establishment of fuzzy relations, fuzzy clustering, etc. Finally, through a specific location planning instance to illustrate the whole process of cluster analysis. The results show that, the method of fuzzy cluster analysis Provide a scientific method to the regional city multi-level logistics distribution center location plan, but in the practical application also needs integrated more factors to make a final decision.

Design and simulation of a logistics network for a telecom products supply application: a case study

Abstract: This is a case study that resolves a telecom product logistics distribution network design and simulation analysis problem for Sichuan Telecom Company in southwestern China. A mixed integer program was applied to determine the number and locations of distribution centers. To compare different order-assignment strategies, we developed simulation models to represent dynamic processes of order arrivals, distribution center operations, and delivery transportation. We then made experimental runs through simulation to evaluate the system performance under different strategies with regard to different criteria such as cycle time, cost, service level and resource utilization.

Comprehensive Evaluation of Logistics Performance for Agricultural Products Distribution Center

Abstract: According to the multi-dimension,ambiguity and uncertainty of logistics performance evaluation for agricultural products distribution center (DC) and the lack of prevalent evaluation methods,a hierarchy model of evaluation factors is proposed in the general performance evaluation.It combines fuzzy analytical hierarchy process (FAHP) with fuzzy comprehensive evaluation to realize quantitative comprehensive evaluation of logistics performance for agricultural products DC. In additon, it finally proves the retionality and application of this method through a practical case.

The evaluation of information sharing and transshipment mechanisms on supply chain performance: The case study from Thailand' retail chain

Abstract: In this study, we (attempted to) demonstrate the benefit of information sharing on supply chain performance in a three echelon supply chain that consists of one distribution center and two store retailers. To perform the analysis, the discrete event simulation model for inventory replenishment process was developed based on the actual data obtained from the retailer. Various replenishment information sharing mechanisms were analyzed for promotional and non-promotional merchandises in each store. In addition, we also analyzed the benefit of inter-store information sharing and inter-store transshipment on supply chain performance. The impacts of information sharing mechanisms on retail supply chain performance were investigated to find the mechanisms that led to the long-run average total cost minimization.

Delivering the Plan: The CPFR and S&OP Continuum

Abstract: EXECUTIVE SUMMARY | The integration and synthesis of multiple stakeholder insights is the most powerful enabler to improving retail demand forecasts today. A great deal of progress has been made in the retail and manufacturing industry around the development of internal and external collaboration processes using the SO, from a vendor's factory to their regional distribution center (DC),.from their DC to a retailer's DC, and from a retailer's DC to their stores. The key imperative to achieving this priority of "right place at the right time" is having a good forecast. Possible Disconnects in a Non-Collaborative Space: A Retail Example And so, while the priority of "right place at the right time" ultimately ends with the end customer, the key imperative of forecasting naturally begins with this same end customer! It then propagates upstream through all the same layers. The translation of this end customer demand into distribution center demand forecasts and eventually a factory demand plan is driven by the inventory policy of the individual layer being forecasted. Consider fora moment how many different possible breaking points there are in achieving this priority. Let's talk a little bit about these multiple forecast points. * The KBU (Key Business Units) forecast is built at the business unit level. It is typically based on executive goals and shareholder expectations. It incorporates market share targets and industry level forecasts. It includes the impact of channel expansion or contraction, new business ventures, etc. * Merchant forecasts, built at the product category level, are based on category goals, and incorporate market share goals and industry forecast. However, these forecasts now start to layer in the specific impacts of promotional plans, new product introduction plans, marketing strategies, etc. * Store Sales Forecasts are built at the SKU/Week/Location level and are typically referred to as bottom-up forecasts. These are the most objective reflection of the impact of currently planned activity. They are statistically developed reflecting seasonality, trend, and the projected impact of promotional activity based on pastobserved lifts. * The retailer's order forecast is the projection of planned purchases from a manufacturer. They are developed at the SKU/Week/DC level and are naturally limited to only the SKUs the retailer carries for that vendor. This forecast is based on the store sales forecast after netting against current inventory levels and open orders. The need is based on pre-determined inventory parameters, which in turn are designed to support a targeted service level against assumed levels of demand variability over a known supply lead time and must also account for a projected degree of supply variability at each node being planned. The multiple retail forecasting nodes just described work in similar sequence within the manufacturing framework. The retail planned orders serve as a key input into the manufacturers' bottom- up demand forecast when aggregated with the demand of all other customers the manufacturer may have. This aggregated demand forecast must be netted against the existing available products to commit inventory to determine a production plan. This production plan in turn must be passed on to the manufacturers' suppliers. In addition to this bottom-up demand forecast, the manufacturer has a KBU and Merchant Forecast. …

Optimization on stochastic inventory-routing problem in multi-cycle two-echelon system

Abstract: Inventory and transportation are the topmost main activities in modern logistics,and how to optimize these two activities is a vitally challenging work to the vendor-managed-inventory modeTaking the two-echelon system consisted of one distribution center and many retailers as the object,and aiming to minimize the mean total cost in the system planning horizon,the paper analyzes all of the cost,including the retailer's stocking,shortage penalty,and distribution center's replenishment,holding,distribution,and models for the Inventory-Routing Problem(IRP)Further,according to the retailer's demand stochastic property,the bound of its stocking is estimatedA primary ordering policy and a distributing priority principle are selected for the distribution center based on the two-stage characteristic of the IRPBorrowing idea from solving famous traveling-salesman problem,a heuristic algorithm is proposed for the IRPAs a result,a simulating problem,which is solved by computer program with Matlab70,is used to test the effectiveness of the optimization method and the algorithm,the IRP outcome saves cost about 73%,compared with their separate optimization

Scheduling the internal operations in distribution centers with buffer constraints

Abstract: This paper introduces a new problem on the schedule of the internal operations in Distribution Centers with buffer constraints. This distribution center is devoted to the distribution of goods from suppliers to customers. We divide the internal operations in three phases: de-consolidation, sorting and consolidation. We propose an Integer Linear Programming formulation to model the problem. The objective is to minimize the total operation time determining the optimal sequence of the operations in the three phases. We also present some examples to highlight the impact of the buffer capacity constraints on the system.

The concept of decision support system structures for the distribution center

Abstract: Received: 18 July 2010 Abstract Accepted: 1 September 2010 The paper presents the concepts and the basic structure of decision support system in the form of an additional layer of an ERP system. Any decision can be interpreted as a response to the properly formulated question that meets the existing constraints. Novel mechanism was introduced to the automatic generation of questions in the form of CLP (Constraint Logic Programming) predicates or MIP (Mixed Integer Programming) models. As an illustrative example, the optimization problem of allocation of pallets in distribution center has been presented.

Multi-Node Distribution Center Location Model under Manufacturing and Remanufacturing System

Abstract: This study establishes the logistics distribution center location model under manufacturing and remanufacturing system and modifies alternative expenses and time- restricting condition s of logistics distribution center location model according to the specific feature of model under manufacturing and remanufacturing system. It’s necessary to consider all the factors during the course of establishing the logistics distribution center location model. And it is also necessary to consider effectiveness of distribution center in model and ask for the experts’ opinion and advice. A location model by combining DEA model and mixed integer programming is presented. In this model, in terms of the results of the evaluation of the efficiency of the distribution center by the DEA model, this result is regarded as a constraint of the model. Finally, An example demonstrates that the model can solve the problem of distribution centers location and provide an effective decision tool for decision-maker.

Logistics Efficiency Improvement with Lean Management and RFID Application

Abstract: This study illustrates the application of lean management and Radio Frequency Identification (RFID) technology to improve the logistics efficiency in a distribution center. The distribution center stores more than ten million parts belonging to about ten thousand types. There are more than ten thousand storage and retrieval operations for hundreds of part types on a daily basis. Value stream mapping was used to draw current state mapping with material flow, information flow, and time flow. Based on the concept of business process reengineering, future state mapping with RFID application was developed. Preliminary experiments showed that 100% read rate was achieved with a fixed RFID reader and an antenna installed at a garage door and Ultra-High Frequency passive tags mounted on each pallet. The benefit using RFID in the distribution center is analyzed (e.g., with a saving of cycle time and process time by 24% and 22%, respectively) and promoted.

Choice-Making on Distribution Locations of Logistics Center Based on Fuzzy Multi-criteria Decision Making Theory

Abstract: In light of China's logistics industry, the location selection of distribution center is one of the most important issues. The objective of this research is to present a location-selection model of logistics distribution center based on fuzzy multi-criteria decision making theory. With the model, the candidate evaluation programs of the logistics distribution center location are simulated and tested by the triangular fuzzy number and fuzzy value. The final decision is determined by the classical fuzzy multiple attribute group decision-making theory. By cooperation of quantitative factors and qualitative factors with the subjective preference factor from adjudicators, the model has been optimized to reduce considerably the volatility of evaluation results. The ultimate purpose of the model is to achieve the functionality to acquire the weighting hierarchy of candidate programs to choose out the most appropriate plan. The model effectively reduces the computational complexity of the selection process. It can provide accurate data supporting on decision-determining for logistics distribution center location.