What should be lean buffer threshold for the forward-reserve warehouse?

Shah, Bhavin

doi:10.1108/ijppm-02-2021-0075

Cited by 2 publications

(1 citation statement)

References 57 publications

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“…It considers a long-term forecast with seasonal demand and determines each warehouse's appropriate capacity and optimal locations. The challenges with strategic decision-making in warehouses about the suitable capacity of buffer to be kept were studied by Shah (2023).…”

Section: Literature Reviewmentioning

confidence: 99%

An optimization model for the downstream supply chain network, considering consolidated warehouses and the selection of transportation mode

Mishra,

Dutta,

Gottipalli

2023

IJPPM

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PurposeThe supply chain (SC) of the fast-moving consumer goods (FMCG) sector in India witnessed a significant change soon after introducing the Goods and Services Tax (GST). With the initiation of this tax, companies started moving from individual state-wise warehouses to consolidation warehouses model to save costs. This paper proposes a model that frames a mathematical formulation to optimize the distribution network in the downstream SC by considering the complexities of multi-product lines, multi-transport modes and consolidated warehouses.Design/methodology/approachThe model is designed as mixed-integer linear programming (MILP), and an algorithm is developed that works on the feedback loop mechanism. It optimizes the transportation and warehouses rental costs simultaneously with impact analysis.FindingsTotal cost is primarily influenced by the critical factor transportation price rather than the warehouse rent. The choice of warehouses at prime locations was a trade-off between a lower distribution cost and higher rent tariffs.Research limitations/implicationsThe study enables FMCG firms to plan their downstream SC efficiently and to be in line with the recent trend of consolidation of warehouses. The study will help SC managers solve complexities such as multi-product categories, truck selection and consolidation warehouse selection problems and find the optimum value for each.Originality/valueThe issues addressed in the proposed work are transporting products with different sizes and weights, selecting consolidated warehouses, selecting suitable vehicles for transportation and optimizing distance in the distribution network by considering consolidated warehouses.

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Section: Literature Reviewmentioning

confidence: 99%

An optimization model for the downstream supply chain network, considering consolidated warehouses and the selection of transportation mode

Mishra,

Dutta,

Gottipalli

2023

IJPPM

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A Combined Dynamic Programming and Simulation Approach to the Sizing of the Low-Level Order-Picking Area

et al. 2022

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In order to increase the efficiency of the order-picking process, warehouses are forced to find ways to adopt to constantly intensifying changes in the assortment and quantities of stored products. Accordingly, we present a methodology that deals with such a problem at a tactical level by defining the optimal size and an allocation of products within the order-picking area of the most typical order-picking setting. The methodology combined two methods, dynamic programming and simulation modelling, with the aim of taking advantages of their positive features. In that sense, the optimal allocation of products for different sizes of the order-picking zone were obtained by the dynamic programming approach. Afterwards, the influence of a demand’s seasonality and variations were treated by the simulation model, so that the more realistic performances of the system were captured for the optimal allocation of products. The methodology was tested on the retailer data with significant week seasonality. The obtained results confirmed the practical applicability of the methodology in real systems, while the sensitivity analysis of results showed that special attention and effort should be given to the determination of costs related to the engagement of order-pikers, storage equipment and unit replenishment during a planning period.

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What should be lean buffer threshold for the forward-reserve warehouse?

Cited by 2 publications

References 57 publications

An optimization model for the downstream supply chain network, considering consolidated warehouses and the selection of transportation mode

An optimization model for the downstream supply chain network, considering consolidated warehouses and the selection of transportation mode

A Combined Dynamic Programming and Simulation Approach to the Sizing of the Low-Level Order-Picking Area

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