Embed Size (px)
Citation preview
Warehousing in the Global Supply Chain
Riccardo ManziniEditor
Warehousing in the GlobalSupply Chain
Advanced Models, Tools and Applicationsfor Storage Systems
123
Riccardo ManziniDepartment of Industrial and Mechanical PlantsUniversity of BolognaViale Risorgimento 240136 BolognaItalye-mail: [email protected]
ISBN 978-1-4471-2273-9 e-ISBN 978-1-4471-2274-6DOI 10.1007/978-1-4471-2274-6Springer London Dordrecht Heidelberg New York
British Library Cataloguing in Publication DataA catalogue record for this book is available from the British Library
Library of Congress Control Number: 2011941668
� Springer-Verlag London Limited 2012
GoogleTM and Google Scholar are registered trademarks of Google Inc., 1600 Amphitheatre Parkway,Mountain View, CA 94043, USA http://www.google.com
CNNmoney � 2011 Cable News Network. Turner Broadcasting System, Inc. Turner House, 16 GreatMarlborough Street, London+
comScore � 11465 Sunset Hills Road, Suite 200, Reston, Virgi+
BBC news � BBC Worldwide Limited, Media Centre, 201 Wood Lane, London, W127TQ
Apart from any fair dealing for the purposes of research or private study, or criticism or review, aspermitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced,stored or transmitted, in any form or by any means, with the prior permission in writing of thepublishers, or in the case of reprographic reproduction in accordance with the terms of licenses issuedby the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should besent to the publishers.The use of registered names, trademarks, etc., in this publication does not imply, even in the absence ofa specific statement, that such names are exempt from the relevant laws and regulations and thereforefree for general use.The publisher makes no representation, express or implied, with regard to the accuracy of the infor-mation contained in this book and cannot accept any legal responsibility or liability for any errors oromissions that may be made.
Printed on acid-free paper
Springer is part of Springer Science+Business Media (www.springer.com)
To Valentina and our beautiful children
Foreword
Warehousing is one of the most important and critical logistic activities inindustrial and service systems. A few production philosophies, e.g. just in time(JIT) and lean manufacturing, propose and support the so-called ‘‘zero stock’’ asbasic and strategic pillar. Also manufacturing requirement planning (MRP), thewell known and widely adopted ‘‘push-’’ based fulfillment technique, theoreticallyguarantees no storage quantities when the ‘‘lot for lot’’ reorder policy is adopted.Nevertheless, these special production systems do not operate in absence ofwarehousing systems that support and smooth the discontinuity of flow materials,products and components, at the input and at the bottom of a generic productionstage.
Warehousing activities and storage systems are necessary! This is true in manyindustrial and not industrial sectors: from automotive to tile industry passing fromfood industry, health care production systems, service sectors (e.g. banks, uni-versities, hospitals), etc. Obviously, warehousing is the core activity of logisticproviders, usually specialized in distribution activities including storage andtransportation issues. In special sectors, like the food industry and the health caresupply chains, warehousing means storage systems in critical operating conditions,e.g. controlled temperature and/or humidity levels, by the management of freshand perishable products.
The storage systems significantly affect the level of quality of products, thecustomer’s service level, and the global logistic cost. Just an example: the foodindustry. Warehousing and transportation issues significantly affect the level ofquality of foodstuffs at the consumer’s location, especially when production plantsand final points of demand (consumers’ locations) are far away and frequentlylocated in different countries (e.g. wine produced in Italy and used in Taiwan), andthe distribution system is very complex including many actors, e.g. distributioncenters, wholesalers, dealers, etc.
The mission of warehousing is the same of the discipline ‘‘logistics’’: toeffectively ship products in the right place, at the right time, and in the rightquantity (i.e. in any configuration) without any damages or alterations. Importantkeywords in warehousing and storage systems are: safety, quality, availability, cost
vii
saving, customer service level, traceability, picking, automation, fulfillment, traveltime, etc. They animate the researches and discussions illustrated in thismanuscript.
With increased globalization and offshore sourcing, global supply chain man-agement is becoming an important issue for many businesses. Global supply chainmanagement involves a company’s worldwide interests and suppliers rather thansimply a local or national orientation. This is the operational arena of warehousesin most complex production systems.
The generic warehouse plays a critical role in supporting the success of a globalsupply chain especially in presence of many products, many facilities (eventuallylocated in a wide geographical area, e.g. worldwide), many decision makers andactors [e.g. sources, production plants, central distribution systems (CDCs),regional distribution systems (RDCs), wholesalers, dealers, customers, etc.] andlimited resources in terms of people, equipment and space.
Literature on storage systems was very popular during 1990s. Many paperswere published on several issues, mainly based on mathematical models as sup-porting decision-making activities. A few papers are recently published onwarehousing and storage systems for industry: the largest part of them does notadopt a systematic approach to the whole production–distribution system andsupply chain. The challenge of current and future studies and applications is todevelop and apply effective models, methods and tools for the whole logisticsystem optimization supporting the activities of planning, design, management andcontrol in order to find global optima and renouncing to local sub optimizations.Logistic managers and professionals of production systems need effective tools forthe global supply chain planning and management.
Aim of this book is to present a collection of professional and research chapterson main problems and challenges in warehousing activities, i.e. warehouse oper-ations, and issues for storage industrial and service systems as parts of globalsupply chains.
This book is useful to managers and practitioners of industry and service sec-tors: it is the basis for the determination and modeling of the most critical issuesconcerning warehousing systems planning and design. Advanced and effectivesolving methods are also illustrated and the discussed case studies help the readerto quickly apply the proposed models and techniques/algorithms. The book is alsouseful for students and researchers of academic institutions who are searching foradvanced modeling approaches and solving techniques to complex logistic deci-sion making problems.
This book presents and discusses a set of models, tools and real applications,also including a few case studies rarely presented with a sufficient detail by theliterature. It is made of 17 chapters organized in four parts: the first presents mainissues, models and policies on warehousing systems and picking activities; thesecond, named Part 1—Manual Storage System, collects basic and advancedcontributions on the so-called ‘‘manual’’ storage systems, i.e. not supported byautomation; the third part, named Part 2—Automated Storage Systems, presentssix original contributions on models and tools for the design, management and
viii Foreword
control of automated storage systems (e.g. AS/RSs automated storage & retrievalsystems, carousels, etc.); finally the last part, named Part 3—Applications andCase Studies, illustrates significant applications of the proposed models andmethods very useful to managers and practitioners of industry and service sector.
The authors who accepted to contribute to this book are important researcherson supply chain systems and warehousing systems. They published significantstudies and papers on academic and professional referenced journals. The includedchapters have been subjected to a double blind review process that significantlyimprove the level of quality of the original versions as submitted at the beginningof the publishing project.
Further editions of this book including new chapters contributions is expected:to this purpose new authors are welcome for further contributions and are invitedto contact me.
I would like to thank my colleagues and students of Bologna University, particu-larly those who dealing with warehousing systems and global supply chains areinterested in quantitative approaches and optimization. Special thanks to Yavuz Bozer,University of Michigan, who accepted to write the preface of this book: it was a greathonour. He published important researches on main topics and issues of this booksignificantly contributing to the progress of Logistics and Operations in industrialresearch and applications.
Thanks to all the authors contributing to the publication of this book, and toSpringer (especially to the editorial assistants).
Bologna, June 15, 2011 Riccardo ManziniProfessor of Logistics
Department of Industrial Mechanical Plants and LogisticsBologna University
Foreword ix
Preface
During the 1960s through the 1980s, back when manufacturing dominated theagenda for many private and public sector companies, warehousing was generallyviewed as a back-office operation that added little or no value, and in many cases itwas treated as an undesirable but necessary cost-center. As the power of leanthinking and just-in-time inventory management spread through the manufacturingsector, one might even say that many ‘‘eyes looking for waste’’ turned to thewarehouse, where plenty of excess inventories (considered one of the primarysources of ‘‘waste’’ in lean thinking) were kept in endless rows of racks, reachingheights of 40 ft (12 m) and more. Many individuals, who embarked on applyinglean thinking to manufacturing, started to view warehouse design/management asa dead-end career.
However, two fundamental changes started to take shape, and it is not clear thateither one of the changes were anticipated by the research or the industrial com-munity. At least, it seems no one anticipated how fast the changes would occur,and how deep their impact would be. First, competition, which traditionally wasmostly a regional phenomenon, confined primarily to continents or limited bygeography, became global. Well-established, multi-national corporations as wellas new companies just entering the market began to compete on a global scalenever seen before. And the competition was not only for reaching large numbers ofcustomers in existing and new markets, but it was also for identifying and utilizingsources of low-cost labor in every corner of the world. As a result, the manu-facturing sector underwent a tremendous transformation, and in the process, globalsupply chain design and management emerged as a top-priority topic for manycompanies as well as the research community. In fact, a quick Google search on‘‘global supply chain’’ generates over 750,000 hits on the web. Based only onarticles, and excluding patents, a search of the same subject in Google Scholargenerates over one million results!
A global supply chain, however, is not just an abstract entity composed ofpolicies, supplier contracts, purchasing agreements, etc. that exist on a computernetwork or database. Rather, a global supply chain, in order to function properly, isan entity supported by a logistics system that makes it possible to move a variety
xi
of goods through the system in a timely and cost-effective manner. When thesupply chain is viewed as a network, transportation systems such as trucking,railways and shipping/air lines represent the ‘‘arcs’’ in the network, while thefacilities that handle the goods through the network represent the ‘‘nodes.’’ Suchfacilities include:
• Manufacturing facilities• Warehouses and distribution centers• Container terminals (or seaports)• Consolidation/deconsolidation centers• Rail yards• Crossdocks• Airports (handling freight)
When viewed in the above context, warehousing—which takes place in all ofthe above facilities, to one extent or another—suddenly becomes a critical com-ponent of the global supply chain. In other words, as their supply chains extendedaround the globe, companies began to recognize that where and how raw materials,components and (semi) finished goods are stored in the network have a majorimpact on their operations, their agility/flexibility, their service levels andresponsiveness to their customers, and their overall costs. The above recognitionby no means implied that storing excess inventories became acceptable or desir-able. Rather, as companies watched their supply networks get longer and morecomplex, and as they learned to apply lean thinking to their supply networks, theyrealized that warehousing the right amount/type of inventory in the right/moststrategic locations can be a major competitive advantage. In the process, manycompanies also learned that warehousing is not only a point of storage in thenetwork but also a point of critical information. That is, as supply chains becameleaner, timely and correct information, especially inventory visibility and accu-racy, which is a key function in warehousing, became essential for success.
The second fundamental change that impacted warehousing is the emergence ofonline shopping or e-tailing, especially in the United States and other developed/developing countries around the world. For example, according to CNNMoney.comand Virginia-based comScore, consumers in the United States spent a record30.8 billion dollors shopping online during the month of December 2010. Thisfigure represented a 13% increase from the same period in 2009, despite therecession. The growth in e-tail in Europe has been equally impressive. According toa BBC News article, for example, under the heading ‘‘online shopping defiesslowdown,’’ it is reported that the e-tail growth rate is about ten times that of thegrowth rate of the traditional retail market in the United Kingdom as a whole, and itis forecast that online retail sales would reach almost 45 billion pounds by 2012,which represents roughly 14% of the total spending. Other projections on e-tail areequally startling. According to Forrester Research, web-based sales in the UnitedStates will reach 249 billion dollors by 2014, and in western Europe, online retail
xii Preface
sales are projected to increase by 68% from 68 billion euros in 2009 to 114 billioneuros by 2014!
The phenomenal growth in e-tailing has had (and will continue to have) a majorimpact on warehousing and parcel/package delivery systems from the warehouseto the customer. That is, stocking the items that the customers need/want, picking,packing and shipping these items to the customers on a timely basis, and doing sowith maximum accuracy, has now become a big and very viable business model,which transformed the warehouse from a back-office cost-center to a front-officeprofit-center! As a result, designing and operating a warehouse, and its variousfunctions such as storage, order picking, sortation and so on, in the most efficientand effective manner has become a front-and-center concern for companies thatare competing for a slice of the growing e-tail market.
Given the above changes, and the renewed focus on warehousing, a bookconcerned with advanced models, tools and applications for storage systems couldnot have been more timely. In the pages of this book, the reader will find a richcollection of insightful and practical models and algorithms presented in a series ofchapters arranged in a logical, easy-to-follow manner. The models and algorithmspresented cover a wide range of topics, such as order picking/batching andwarehouse layout, and a wide range of systems, including automated systems(such as Automated Storage/Retrieval Systems), semi-automated systems (such ascarousels) and manual systems (such as walk-and-pick systems). The book isfurther enriched with a section devoted to applications and case studies that showhow theory is applied in practice. I congratulate the editor and the authors for theirhard work and for putting together a book that is going to serve as an excellentreference for researchers and warehousing professionals alike.
Professor Yavuz A. BozerIndustrial and Operations Engineering
The University of MichiganAnn Arbor, MI
USA
Preface xiii
Contents
1 Order Picking: Issues, Systems and Models . . . . . . . . . . . . . . . . . 1Byung Chun Park
2 Storage Systems and Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Marc Goetschalckx
Part I Manual Storage Systems
3 Warehouse Layouts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Goran Dukic and Tihomir Opetuk
4 Order-Picking by Cellular Bucket Brigades: A Case Study . . . . . 71Yun Fong Lim
5 A Sequential Order Picking Policy for Shipping Large Numbersof Small Quantities of Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Jiun-Yan Shiau
6 Order Batching in Order Picking Warehouses: A Surveyof Solution Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Sebastian Henn, Sören Koch and Gerhard Wäscher
7 Storage Assignment for Order Pickingin Multiple-Block Warehouses . . . . . . . . . . . . . . . . . . . . . . . . . . 139Kees Jan Roodbergen
xv
Part II Automated Storage Systems
8 Automated Storage and Retrieval Systems: A Review onTravel Time Models and Control Policies . . . . . . . . . . . . . . . . . . 159M. R. Vasili, Sai Hong Tang and Mehdi Vasili
9 Designing Unit Load Automated Storageand Retrieval Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Tone Lerher and Matjaz Šraml
10 Warehouse Management: Productivity Improvementin Automated Storage and Retrieval Systems. . . . . . . . . . . . . . . . 233Yaghoub Khojasteh-Ghamari
11 Analytical and Numerical Modeling of AS/RS Cycle Timein Class-Based Storage Warehousing . . . . . . . . . . . . . . . . . . . . . . 261Mauro Gamberi, Riccardo Manzini and Alberto Regattieri
12 A New Technology For Unit-Load Automated Storage System:Autonomous Vehicle Storage and Retrieval System . . . . . . . . . . . 285Banu Yetkin Ekren and Sunderesh Sesharanga Heragu
13 Intelligent Optimization Methods for IndustrialStorage Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341Mirko Ficko, Simon Klancnik, Simon Brezovnik,Joze Balic, Miran Brezocnik and Tone Lerher
Part III Applications and Case Studies
14 Correlated Storage Assignment and Iso-Time MappingAdopting Tri-Later Stackers. A Case Study fromTile Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373Riccardo Manzini, Filippo Bindi, Emilio Ferrariand Arrigo Pareschi
15 Design and Optimization of Picking in the Caseof Multi-Item Multi-Location Multi-Pallet Customer Orders . . . . 397R. Gamberini, B. Rimini, M. Dell’Amico, F. Lolli and M. Bianchi
xvi Contents
16 The Logistics Reengineering Process in a Warehouse/OrderFulfillment System: A Case Study . . . . . . . . . . . . . . . . . . . . . . . . 425Alberto Regattieri, Riccardo Manzini and Mauro Gamberi
17 Warehouse Assessment in a Single Tour . . . . . . . . . . . . . . . . . . . 457M. B. M. De Koster
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477
Contents xvii
Contributors
Byung Chun Park Department of Industrial and Systems Engineering, KeimyungUniversity, Dalseo-gu Shindang-dong 1000, Daegu, South Korea, e-mail: [email protected]
Marc Goetschalckx Georgia Institute of Technology, 765 Ferst Drive, Georgia30332-0205, USA, e-mail: [email protected]
Goran Dukic Faculty of Mechanical Engineering and Naval Architecture,University of Zagreb, Ivana Lucica 1, 10000 Zagreb, Croatia, e-mail: [email protected]
Tihomir Opetuk Faculty of Mechanical Engineering and Naval Architecture,University of Zagreb, Ivana Lucica 1, 10000 Zagreb, Croatia
Yun Fong Lim Lee Kong Chian School of Business, Singapore ManagementUniversity, 50 Stamford Road, # 04-01, Singapore 178899, Singapore, e-mail:[email protected]
Jiun-Yan Shiau Department of Logistics Management, National Kaohsiung FirstUniversity of Science and Technology, Kaohsiung, Taiwan, e-mail: [email protected]
Sebastian Henn Faculty of Economics and Management, Otto-von-GuerickeUniversity, Postbox 4120, 39016 Magdeburg, Germany, e-mail: [email protected]
Sören Koch Faculty of Economics and Management, Otto-von-Guericke Univer-sity, Postbox 4120, 39016 Magdeburg, Germany, e-mail: [email protected]
Gerhard Wäscher Faculty of Economics and Management, Otto-von-Guericke University, Postbox 4120, 39016 Magdeburg, Germany, e-mail: [email protected]
Kees Jan Roodbergen University of Groningen, P.O. Box 800, 9700 AVGroningen, The Netherlands, e-mail: [email protected]
xix
M. R. Vasili Department of Industrial Engineering, Lenjan Branch, Islamic AzadUniversity, Esfahan, Iran, e-mail: [email protected]
Sai Hong Tang Department of Industrial Engineering, Lenjan Branch, IslamicAzad University, Esfahan, Iran
Mehdi Vasili Department of Industrial Engineering, Lenjan Branch, Islamic AzadUniversity, Esfahan, Iran
Tone Lerher Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia, e-mail: [email protected]
Matjaz Šraml Faculty of Civil Engineering, University of Maribor, Smetanova17, 2000 Maribor, Slovenia, e-mail: [email protected]
Yaghoub Khojasteh-Ghamari Temple University, Japan Campus, 4-1-27 Mita,Minato-ku, Tokyo 108-0073, Japan, e-mail: [email protected]
Mauro Gamberi Department of Management and Engineering—DTG, PadovaUniversity, Padova, Italy
Riccardo Manzini Department of Industrial Mechanical Plants—DIEM, BolognaUniversity, Bologna, Italy, e-mail: [email protected]
Alberto Regattieri Department of Industrial Mechanical Plants—DIEM, BolognaUniversity, Bologna, Italy
Banu Yetkin Ekren Deptartment of Industrial Engineering, Pamukkale University,Denizli, Turkey
Sunderesh Sesharanga Heragu Department of Industrial Engineering, Universityof Louisville, Louisville, LY 40292, USA, e-mail: [email protected]
Mirko Ficko Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia, e-mail: [email protected]
Simon Klancnik Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia
Simon Brezovnik Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia
Joze Balic Faculty of Mechanical Engineering, University of Maribor, Smetanova17, 2000 Maribor, Slovenia
Miran Brezocnik Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia
Tone Lerher Faculty of Mechanical Engineering, University of Maribor,Smetanova 17, 2000 Maribor, Slovenia
xx Contributors
Riccardo Manzini Department of Industrial Mechanical Plants, University ofBologna, Viale Risorgimento 2, 40136 Bologna, Italy, e-mail: [email protected]
Filippo Bindi Department of Industrial Mechanical Plants, University of Bologna,Viale Risorgimento 2, 40136 Bologna, Italy
Emilio Ferrari Department of Industrial Mechanical Plants, University ofBologna, Viale Risorgimento 2, 40136 Bologna, Italy
Arrigo Pareschi Department of Industrial Mechanical Plants, University ofBologna, Viale Risorgimento 2, 40136 Bologna, Italy
R. Gamberini University of Modena and Reggio Emilia, Via Amendola, 2, Padi-glione Morselli, 42100 Reggio Emilia, Italy, e-mail: [email protected]
B. Rimini University of Modena and Reggio Emilia, Via Amendola, 2, PadiglioneMorselli, 42100 Reggio Emilia, Italy
M. Dell’Amico University of Modena and Reggio Emilia, Via Amendola, 2,Padiglione Morselli, 42100 Reggio Emilia, Italy
F. Lolli University of Modena and Reggio Emilia, Via Amendola, 2, PadiglioneMorselli, 42100 Reggio Emilia, Italy
M. Bianchi University of Modena and Reggio Emilia, Via Amendola, 2,Padiglione Morselli, 42100 Reggio Emilia, Italy
Alberto Regattieri DIEM—Department of Industrial and Mechanical Plants,Bologna University, v.le Risorgimento 2, 40136 Bologna, Italy, e-mail: [email protected]
Riccardo Manzini DIEM—Department of Industrial and Mechanical Plants,Bologna University, v.le Risorgimento 2, 40136 Bologna, Italy
Mauro Gamberi Department of Management and Engineering, DTG University,Padova, Italy
M. B. M. De Koster Rotterdam School of Management, Erasmus University,Burg. Oudlaan 50, 3062 PA, Rotterdam, The Netherlands, e-mail: [email protected]
Contributors xxi
