Decision support for selecting the optimal product unpacking location in a retail supply chain

Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

4 Citaties (Scopus)

Uittreksel

The purpose of this research is to investigate the optimal product unpacking location in a bricks-and-mortar grocery retail supply chain. Retail companies increasingly are investing in unpacking operations at their distribution centres (DC). Given the opportunity to unpack at the DC requires a decision as to which products should be selected for unpacking at the DC and which should be shipped to stores in a case pack (CP) or outer pack provided by the supplier. The combined unpacking and unit size decision is evaluated by focusing on the relevant costs at the DC and in-store, i.e., picking in the DC, unpacking either in the DC or in the store, shelf stacking in the store and refilling from the backroom. For replenishing stores, an (R,s,nQ) inventory policy is considered when using the supplier CP and an (R,s,S) policy when the product is unpacked at the DC. Expressions are developed to quantify the relevant volumes and to calculate the corresponding costs on which the unpacking decision is based. A numerical example with empirical data from a European modern retailer demonstrates that unpacking a subset of the stock keeping units (SKUs) at the DC results in a significant cost reduction potential of 8% compared to no unpacking at the DC. The example shows that DC unpacking can generally be highly favourable for a large share of products.
TaalEngels
Pagina's84–99
Aantal pagina's16
TijdschriftEuropean Journal of Operational Research
Volume259
Nummer van het tijdschrift1
DOI's
StatusGepubliceerd - 2017

Vingerafdruk

Distribution Center
Decision Support
Supply Chain
Supply chains
Brick
Cost reduction
Mortar
Costs
Industry
Supply chain
Retail
Decision support
Distribution center
Unit
Stacking
Quantify
Calculate

Trefwoorden

    Citeer dit

    @article{721f8805409145448c4148622c1c67b0,
    title = "Decision support for selecting the optimal product unpacking location in a retail supply chain",
    abstract = "The purpose of this research is to investigate the optimal product unpacking location in a bricks-and-mortar grocery retail supply chain. Retail companies increasingly are investing in unpacking operations at their distribution centres (DC). Given the opportunity to unpack at the DC requires a decision as to which products should be selected for unpacking at the DC and which should be shipped to stores in a case pack (CP) or outer pack provided by the supplier. The combined unpacking and unit size decision is evaluated by focusing on the relevant costs at the DC and in-store, i.e., picking in the DC, unpacking either in the DC or in the store, shelf stacking in the store and refilling from the backroom. For replenishing stores, an (R,s,nQ) inventory policy is considered when using the supplier CP and an (R,s,S) policy when the product is unpacked at the DC. Expressions are developed to quantify the relevant volumes and to calculate the corresponding costs on which the unpacking decision is based. A numerical example with empirical data from a European modern retailer demonstrates that unpacking a subset of the stock keeping units (SKUs) at the DC results in a significant cost reduction potential of 8{\%} compared to no unpacking at the DC. The example shows that DC unpacking can generally be highly favourable for a large share of products.",
    keywords = "Supply chain management, inventory, retail operations, packaging, In-store logistics",
    author = "R.A.C.M. Broekmeulen and M. Sternbeck and {van Donselaar}, K.H. and H. Kuhn",
    year = "2017",
    doi = "10.1016/j.ejor.2016.09.054",
    language = "English",
    volume = "259",
    pages = "84–99",
    journal = "European Journal of Operational Research",
    issn = "0377-2217",
    publisher = "Elsevier",
    number = "1",

    }

    Decision support for selecting the optimal product unpacking location in a retail supply chain. / Broekmeulen, R.A.C.M.; Sternbeck, M.; van Donselaar, K.H.; Kuhn, H.

    In: European Journal of Operational Research, Vol. 259, Nr. 1, 2017, blz. 84–99.

    Onderzoeksoutput: Bijdrage aan tijdschriftTijdschriftartikelAcademicpeer review

    TY - JOUR

    T1 - Decision support for selecting the optimal product unpacking location in a retail supply chain

    AU - Broekmeulen,R.A.C.M.

    AU - Sternbeck,M.

    AU - van Donselaar,K.H.

    AU - Kuhn,H.

    PY - 2017

    Y1 - 2017

    N2 - The purpose of this research is to investigate the optimal product unpacking location in a bricks-and-mortar grocery retail supply chain. Retail companies increasingly are investing in unpacking operations at their distribution centres (DC). Given the opportunity to unpack at the DC requires a decision as to which products should be selected for unpacking at the DC and which should be shipped to stores in a case pack (CP) or outer pack provided by the supplier. The combined unpacking and unit size decision is evaluated by focusing on the relevant costs at the DC and in-store, i.e., picking in the DC, unpacking either in the DC or in the store, shelf stacking in the store and refilling from the backroom. For replenishing stores, an (R,s,nQ) inventory policy is considered when using the supplier CP and an (R,s,S) policy when the product is unpacked at the DC. Expressions are developed to quantify the relevant volumes and to calculate the corresponding costs on which the unpacking decision is based. A numerical example with empirical data from a European modern retailer demonstrates that unpacking a subset of the stock keeping units (SKUs) at the DC results in a significant cost reduction potential of 8% compared to no unpacking at the DC. The example shows that DC unpacking can generally be highly favourable for a large share of products.

    AB - The purpose of this research is to investigate the optimal product unpacking location in a bricks-and-mortar grocery retail supply chain. Retail companies increasingly are investing in unpacking operations at their distribution centres (DC). Given the opportunity to unpack at the DC requires a decision as to which products should be selected for unpacking at the DC and which should be shipped to stores in a case pack (CP) or outer pack provided by the supplier. The combined unpacking and unit size decision is evaluated by focusing on the relevant costs at the DC and in-store, i.e., picking in the DC, unpacking either in the DC or in the store, shelf stacking in the store and refilling from the backroom. For replenishing stores, an (R,s,nQ) inventory policy is considered when using the supplier CP and an (R,s,S) policy when the product is unpacked at the DC. Expressions are developed to quantify the relevant volumes and to calculate the corresponding costs on which the unpacking decision is based. A numerical example with empirical data from a European modern retailer demonstrates that unpacking a subset of the stock keeping units (SKUs) at the DC results in a significant cost reduction potential of 8% compared to no unpacking at the DC. The example shows that DC unpacking can generally be highly favourable for a large share of products.

    KW - Supply chain management

    KW - inventory

    KW - retail operations

    KW - packaging

    KW - In-store logistics

    U2 - 10.1016/j.ejor.2016.09.054

    DO - 10.1016/j.ejor.2016.09.054

    M3 - Article

    VL - 259

    SP - 84

    EP - 99

    JO - European Journal of Operational Research

    T2 - European Journal of Operational Research

    JF - European Journal of Operational Research

    SN - 0377-2217

    IS - 1

    ER -