Product allocation to different types of distribution center in multi-stage retail logistics networks

Details zur Publikation
Abkürzung der Fachzeitschrift: EJOR
Autorenliste: Holzapfel A., Kuhn H., Sternbeck M.
Jahr der Veröffentlichung: 2018
Quelle: European Journal of Operational Research
Bandnummer: 264
Heftnummer: 3
Erste Seite: 948
Letzte Seite: 966
Verlag: Elsevier
ISSN: 0377-2217
DOI: 10.1016/j.ejor.2016.09.013
Sprachen: Englisch


We consider the problem of assigning stockkeeping units to distribution
centers (DCs) belonging to different DC types of a retail network, e.g.,
central, regional, and local DCs. The problem is motivated by the real
situation of a retail company and solved by an MIP solution approach.
The MIP model reflects the interdependencies between inbound
transportation, outbound transportation and instore logistics as well as
capital tied up in inventories and differences in picking costs between
the warehouses. A novel solution approach is developed and applied to a
real-life case of a leading European grocery retail chain. The
application of the new approach results in cost savings of 6% of total
operational costs compared to the present assignment. These savings
amount to several million euros per year. In-depth analyses of the
results and sensitivity analyses provide insights into the solution
structure and the major related issues