IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v264y2023ics0925527323002086.html
   My bibliography  Save this article

Responsive pick face replenishment strategy for stock allocation to fulfil e-commerce order

Author

Listed:
  • Lam, H.Y.
  • Ho, G.T.S.
  • Mo, Daniel Y.
  • Tang, Valerie

Abstract

In the rapidly growing e-commerce industry, pallet picking is no longer feasible as the stock keeping units (SKUs) change from the pallet level to the carton or item level. Thus, an effective order-picking process focusing on fast and efficient retrieval of SKUs from shelves is required to fulfil numerous small lot-sized e-commerce orders within a short time. This study investigates a responsive pick face replenishment (RPFR) strategy that divides the high-bay racks in the distribution centres (DCs) into two parts: the upper-deck reserve areas and the pick-face forward areas to improve the operational efficiency in order picking. To address the fluctuating order demand and limited space in the pick-face forward areas, the proposed RPFR system integrates a predictive analytics algorithm with an adaptive network-based fuzzy inference system (ANFIS) and adaptive genetic algorithm-based stock allocation model to generate an optimal stock replenishment plan. By predicting the order demand of each SKU in the next time interval, the types of selected SKUs and their quantities to be loaded into the pick-face forward areas are determined. Numerical experiments are performed to validate the system performance, and comparative analyses are conducted to determine the best parameter settings for the models.

Suggested Citation

  • Lam, H.Y. & Ho, G.T.S. & Mo, Daniel Y. & Tang, Valerie, 2023. "Responsive pick face replenishment strategy for stock allocation to fulfil e-commerce order," International Journal of Production Economics, Elsevier, vol. 264(C).
    • Handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002086
    DOI: 10.1016/j.ijpe.2023.108976
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323002086
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108976?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ren, Shuyun & Choi, Tsan-Ming & Lee, Ka-Man & Lin, Lei, 2020. "Intelligent service capacity allocation for cross-border-E-commerce related third-party-forwarding logistics operations: A deep learning approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    2. Schwerdfeger, Stefan & Boysen, Nils, 2017. "Order picking along a crane-supplied pick face: The SKU switching problem," European Journal of Operational Research, Elsevier, vol. 260(2), pages 534-545.
    3. Sara Martins & Pedro Amorim & Bernardo Almada-Lobo, 2018. "Delivery mode planning for distribution to brick-and-mortar retail stores: discussion and literature review," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 785-812, December.
    4. Guo, Xiaolong & Chen, Ran & Du, Shaofu & Yu, Yugang, 2021. "Storage assignment for newly arrived items in forward picking areas with limited open locations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    5. Ardjmand, Ehsan & Shakeri, Heman & Singh, Manjeet & Sanei Bajgiran, Omid, 2018. "Minimizing order picking makespan with multiple pickers in a wave picking warehouse," International Journal of Production Economics, Elsevier, vol. 206(C), pages 169-183.
    6. Martina Calzavara & Christoph H. Glock & Eric H. Grosse & Fabio Sgarbossa, 2019. "An integrated storage assignment method for manual order picking warehouses considering cost, workload and posture," International Journal of Production Research, Taylor & Francis Journals, vol. 57(8), pages 2392-2408, April.
    7. Farnaz Ghashami & Kamyar Kamyar, 2021. "Performance Evaluation of ANFIS and GA-ANFIS for Predicting Stock Market Indices," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(7), pages 1-1, June.
    8. A. Gürhan Kök & Marshall L. Fisher & Ramnath Vaidyanathan, 2008. "Assortment Planning: Review of Literature and Industry Practice," International Series in Operations Research & Management Science, in: Narendra Agrawal & Stephen A. Smith (ed.), Retail Supply Chain Management, chapter 0, pages 99-153, Springer.
    9. Amit Mehra & Subodha Kumar & Jagmohan S. Raju, 2018. "Competitive Strategies for Brick-and-Mortar Stores to Counter “Showrooming”," Management Science, INFORMS, vol. 64(7), pages 3076-3090, July.
    10. Shuiwang Zhang & Linping Fu & Rong Chen & Yu Mei, 2020. "Optimizing the Cargo Location Assignment of Retail E-Commerce Based on an Artificial Fish Swarm Algorithm," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-14, May.
    11. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126182, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. Luo, Hao & Yang, Xuan & Kong, Xiang T.R., 2019. "A synchronized production-warehouse management solution for reengineering the online-offline integrated order fulfillment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 211-230.
    13. Calzavara, M. & Glock, C. H. & Grosse, E. H. & Sgarbossa, F., 2019. "An integrated storage assignment method for manual order picking warehouses considering cost, workload and posture," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 107009, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. de Koster, Rene & Le-Duc, Tho & Roodbergen, Kees Jan, 2007. "Design and control of warehouse order picking: A literature review," European Journal of Operational Research, Elsevier, vol. 182(2), pages 481-501, October.
    15. Boysen, Nils & de Koster, René & Weidinger, Felix, 2019. "Warehousing in the e-commerce era: A survey," European Journal of Operational Research, Elsevier, vol. 277(2), pages 396-411.
    16. Bo Yan & Chang Yan & Feng Long & Xing-Chao Tan, 2018. "Multi-objective optimization of electronic product goods location assignment in stereoscopic warehouse based on adaptive genetic algorithm," Journal of Intelligent Manufacturing, Springer, vol. 29(6), pages 1273-1285, August.
    17. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2007. "Research on warehouse operation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 177(1), pages 1-21, February.
    18. Çağla Cergibozan & A. Serdar Tasan, 2019. "Order batching operations: an overview of classification, solution techniques, and future research," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 335-349, January.
    19. René B. M. De Koster & Andrew L. Johnson & Debjit Roy, 2017. "Warehouse design and management," International Journal of Production Research, Taylor & Francis Journals, vol. 55(21), pages 6327-6330, November.
    20. Li, Xiong & Zhao, Xiaodong & Xu, Wangtu (Ato) & Pu, Wei, 2020. "Measuring ease of use of mobile applications in e-commerce retailing from the perspective of consumer online shopping behaviour patterns," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    21. van Gils, Teun & Ramaekers, Katrien & Braekers, Kris & Depaire, Benoît & Caris, An, 2018. "Increasing order picking efficiency by integrating storage, batching, zone picking, and routing policy decisions," International Journal of Production Economics, Elsevier, vol. 197(C), pages 243-261.
    22. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," European Journal of Operational Research, Elsevier, vol. 274(2), pages 501-515.
    23. J Gu & M Goetschalckx & L F McGinnis, 2010. "Solving the forward-reserve allocation problem in warehouse order picking systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(6), pages 1013-1021, June.
    24. Rong Yuan & Tolga Cezik & Stephen C. Graves, 2018. "Stowage decisions in multi-zone storage systems," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 333-343, January.
    25. Walter, Rico & Boysen, Nils & Scholl, Armin, 2013. "The discrete forward–reserve problem – Allocating space, selecting products, and area sizing in forward order picking," European Journal of Operational Research, Elsevier, vol. 229(3), pages 585-594.
    26. Xi, Guangliang & Cao, Xinyu & Zhen, Feng, 2020. "The impacts of same day delivery online shopping on local store shopping in Nanjing, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 35-47.
    27. S. Moons & K. Braekers & K. Ramaekers & A. Caris & Y. Arda, 2019. "The value of integrating order picking and vehicle routing decisions in a B2C e-commerce environment," International Journal of Production Research, Taylor & Francis Journals, vol. 57(20), pages 6405-6423, October.
    28. Zhang, Jun & Liu, Feng & Tang, Jiafu & Li, Yanhui, 2019. "The online integrated order picking and delivery considering Pickers’ learning effects for an O2O community supermarket," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 180-199.
    29. Jiang, Min & Leung, K.H. & Lyu, Zhongyuan & Huang, George Q., 2020. "Picking-replenishment synchronization for robotic forward-reserve warehouses," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    30. Yasmeen Jaghbeer & Robin Hanson & Mats Ingemar Johansson, 2020. "Automated order picking systems and the links between design and performance: a systematic literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 58(15), pages 4489-4505, July.
    31. Behnam Bahrami & El-Houssaine Aghezzaf & Veronique Limère, 2019. "Enhancing the order picking process through a new storage assignment strategy in forward-reserve area," International Journal of Production Research, Taylor & Francis Journals, vol. 57(21), pages 6593-6614, November.
    32. Wan Wu & René B.M. de Koster & Yugang Yu, 2020. "Forward-reserve storage strategies with order picking: When do they pay off?," IISE Transactions, Taylor & Francis Journals, vol. 52(9), pages 961-976, September.
    33. van Gils, Teun & Ramaekers, Katrien & Caris, An & de Koster, René B.M., 2018. "Designing efficient order picking systems by combining planning problems: State-of-the-art classification and review," European Journal of Operational Research, Elsevier, vol. 267(1), pages 1-15.
    34. Jiang, Min & Huang, George Q., 2022. "Intralogistics synchronization in robotic forward-reserve warehouses for e-commerce last-mile delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    35. Ilenia Zennaro & Serena Finco & Martina Calzavara & Alessandro Persona, 2022. "Implementing E-Commerce from Logistic Perspective: Literature Review and Methodological Framework," Sustainability, MDPI, vol. 14(2), pages 1-37, January.
    36. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.
    37. Wei Jiang & Jiyin Liu & Yun Dong & Li Wang, 2021. "Assignment of duplicate storage locations in distribution centres to minimise walking distance in order picking," International Journal of Production Research, Taylor & Francis Journals, vol. 59(15), pages 4457-4471, August.
    38. Boysen, Nils & de Koster, René & Weidinger, Felix, 2019. "Warehousing in the e-commerce era: A survey," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 126185, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    39. He, Bo & Mirchandani, Prakash & Shen, Qichao & Yang, Guang, 2021. "How should local Brick-and-Mortar retailers offer delivery service in a pandemic World? Self-building Vs. O2O platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    40. Yang, Peng & Zhao, Zhijie & Guo, Huijie, 2020. "Order batch picking optimization under different storage scenarios for e-commerce warehouses," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    41. van Gils, Teun & Caris, An & Ramaekers, Katrien & Braekers, Kris & de Koster, René B.M., 2019. "Designing efficient order picking systems: The effect of real-life features on the relationship among planning problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 47-73.
    42. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiang, Min & Huang, George Q., 2022. "Intralogistics synchronization in robotic forward-reserve warehouses for e-commerce last-mile delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    2. AERTS, Babiche & CORNELISSENS, Trijntje & SÖRENSEN, Kenneth, 2022. "The internal warehouse replenishment problem: the importance of storage and replenishment policies," Working Papers 2022007, University of Antwerp, Faculty of Business and Economics.
    3. Zhong, Shuya & Giannikas, Vaggelis & Merino, Jorge & McFarlane, Duncan & Cheng, Jun & Shao, Wei, 2022. "Evaluating the benefits of picking and packing planning integration in e-commerce warehouses," European Journal of Operational Research, Elsevier, vol. 301(1), pages 67-81.
    4. Jiang, Min & Leung, K.H. & Lyu, Zhongyuan & Huang, George Q., 2020. "Picking-replenishment synchronization for robotic forward-reserve warehouses," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    5. Shandong Mou, 2022. "Integrated Order Picking and Multi-Skilled Picker Scheduling in Omni-Channel Retail Stores," Mathematics, MDPI, vol. 10(9), pages 1-19, April.
    6. Li, Xiaowei & Hua, Guowei & Huang, Anqiang & Sheu, Jiuh-Biing & Cheng, T.C.E. & Huang, Fengquan, 2020. "Storage assignment policy with awareness of energy consumption in the Kiva mobile fulfilment system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    7. Guo, Xiaolong & Chen, Ran & Du, Shaofu & Yu, Yugang, 2021. "Storage assignment for newly arrived items in forward picking areas with limited open locations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    8. Dragan Djurdjević & Nenad Bjelić & Dražen Popović & Milan Andrejić, 2022. "A Combined Dynamic Programming and Simulation Approach to the Sizing of the Low-Level Order-Picking Area," Mathematics, MDPI, vol. 10(20), pages 1-23, October.
    9. Onal, Sevilay & Zhu, Wen & Das, Sanchoy, 2023. "Order picking heuristics for online order fulfillment warehouses with explosive storage," International Journal of Production Economics, Elsevier, vol. 256(C).
    10. Katrin Heßler & Stefan Irnich, 2023. "Exact Solution of the Single Picker Routing Problem with Scattered Storage," Working Papers 2303, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    11. Gharehgozli, Amir & Zaerpour, Nima, 2020. "Robot scheduling for pod retrieval in a robotic mobile fulfillment system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    12. van der Gaast, Jelmer Pier & Weidinger, Felix, 2022. "A deep learning approach for the selection of an order picking system," European Journal of Operational Research, Elsevier, vol. 302(2), pages 530-543.
    13. Heiko Diefenbach & Simon Emde & Christoph H. Glock & Eric H. Grosse, 2022. "New solution procedures for the order picker routing problem in U-shaped pick areas with a movable depot," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(2), pages 535-573, June.
    14. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.
    15. Xie, Lin & Li, Hanyi & Luttmann, Laurin, 2023. "Formulating and solving integrated order batching and routing in multi-depot AGV-assisted mixed-shelves warehouses," European Journal of Operational Research, Elsevier, vol. 307(2), pages 713-730.
    16. Çelik, Melih & Archetti, Claudia & Süral, Haldun, 2022. "Inventory routing in a warehouse: The storage replenishment routing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1117-1132.
    17. Boysen, Nils & Schwerdfeger, Stefan & Stephan, Konrad, 2023. "A review of synchronization problems in parts-to-picker warehouses," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1374-1390.
    18. David Winkelmann & Frederik Tolkmitt & Matthias Ulrich & Michael Romer, 2022. "Integrated storage assignment for an e-grocery fulfilment centre: Accounting for day-of-week demand patterns," Papers 2209.03998, arXiv.org, revised May 2023.
    19. Briant, Olivier & Cambazard, Hadrien & Cattaruzza, Diego & Catusse, Nicolas & Ladier, Anne-Laure & Ogier, Maxime, 2020. "An efficient and general approach for the joint order batching and picker routing problem," European Journal of Operational Research, Elsevier, vol. 285(2), pages 497-512.
    20. Laura Korbacher & Katrin Heßler & Stefan Irnich, 2023. "The Single Picker Routing Problem with Scattered Storage: Modeling and Evaluation of Routing and Storage Policies," Working Papers 2302, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002086. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.