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Model Decomposition Speeds Distribution Center Design

Author

Listed:
  • M. Eric Johnson

    (Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37220)

  • Tom Lofgren

    (North American Distribution Operation, Hewlett-Packard Company, 915 Story Road, San Jose, California 95122)

Abstract

Recently, in designing Hewlett-Packard's new North American distribution center, we decomposed the modeling (and design) process into loosely independent pieces that could be developed in a parallel or concurrent fashion, rather than trying to model the entire system at once. Using this approach, we developed simulation models of four different facets of the distribution center, with each model providing useful results in time to aid in system design decisions. While not all systems can be easily decomposed, we believe many simulation modeling projects could benefit from such an approach. The new distribution facility is now operating with a 60 percent improvement in order-picking efficiency and an 80 percent increase in shipment-preparation efficiency.

Suggested Citation

  • M. Eric Johnson & Tom Lofgren, 1994. "Model Decomposition Speeds Distribution Center Design," Interfaces, INFORMS, vol. 24(5), pages 95-106, October.
    • Handle: RePEc:inm:orinte:v:24:y:1994:i:5:p:95-106
    DOI: 10.1287/inte.24.5.95
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    Citations

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    Cited by:

    1. Dirk Briskorn & Simon Emde & Nils Boysen, 2017. "Scheduling shipments in closed-loop sortation conveyors," Journal of Scheduling, Springer, vol. 20(1), pages 25-42, February.
    2. Jérémie Gallien & Théophane Weber, 2010. "To Wave or Not to Wave? Order Release Policies for Warehouses with an Automated Sorter," Manufacturing & Service Operations Management, INFORMS, vol. 12(4), pages 642-662, September.
    3. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2010. "Research on warehouse design and performance evaluation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 203(3), pages 539-549, June.
    4. 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.
    5. Boysen, Nils & Briskorn, Dirk & Fedtke, Stefan & Schmickerath, Marcel, 2019. "Automated sortation conveyors: A survey from an operational research perspective," European Journal of Operational Research, Elsevier, vol. 276(3), pages 796-815.
    6. 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.
    7. Boysen, Nils & Fedtke, Stefan & Weidinger, Felix, 2018. "Optimizing automated sorting in warehouses: The minimum order spread sequencing problem," European Journal of Operational Research, Elsevier, vol. 270(1), pages 386-400.
    8. Douglas Dean & Richard Orwig & Douglas Vogel, 2000. "Facilitation Methods for Collaborative Modeling Tools," Group Decision and Negotiation, Springer, vol. 9(2), pages 109-128, March.
    9. de Koster, M.B.M. & Le-Duc, T. & Roodbergen, K.J., 2006. "Design and Control of Warehouse Order Picking: a literature review," ERIM Report Series Research in Management ERS-2006-005-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.

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