Daily deliveries from the regional distribution center (RDC) network exhibit variation that makes it difficult to effectively schedule labor (minimize over/understaffing). Therefore we were motivated to consider changing the trailer release and delivery process and/or forecasting method that informs scheduling. These considerations also helped us to appreciate tradeoffs between store service and transportation cost.
Sponsor: Wal-Mart Stores, Inc. Research Team: Justin R. Chimka, Lindsey C. Walker, Edward A. Pohl Universities Involved: University of Arkansas Start Date: 01/01/07 End Date: 12/31/08 Summary: This project implements a Bin Location Systems at Wal-Mart that allows for better inventory control and management, increases visibility of inventory from backdoor […]
Order picking is the most costly activity in a typical distribution center. This project focused on the development of a slotting approach that is based on order sequences. A mathematical model of the problem is formulated and solutions are compared to several heuristics in order to illustrate the value of an order-based slotting approach. Preliminary results on a large scale data set show a picking cost savings between 15-3% over a manual approach.