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Prioritizing Replenishments of the Forward Reserve

Author

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  • de Vries, H.
  • Carrasco-Gallego, R.
  • Farenhorst-Yuan, T.
  • Dekker, R.

Abstract

Having sufficient inventories in the piece-picking area of a warehouse is an essential condition for warehouse operations. This requires a timely replenishment of the products from a reserve area in case they could run out of stock. In this paper we develop analytical models to arrive at priority rules for these replenishments in case replenishments and order picking are done simultaneously because of time pressure. This problem was observed in a warehouse of a large cosmetics firm. The priority rules are compared by means of simulation and regression. Finally we present the results of applying one of these rules in practice.

Suggested Citation

  • de Vries, H. & Carrasco-Gallego, R. & Farenhorst-Yuan, T. & Dekker, R., 2012. "Prioritizing Replenishments of the Forward Reserve," Econometric Institute Research Papers EI 2012-06, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:32399
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    References listed on IDEAS

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    1. Gagliardi, Jean-Philippe & Ruiz, Angel & Renaud, Jacques, 2008. "Space allocation and stock replenishment synchronization in a distribution center," International Journal of Production Economics, Elsevier, vol. 115(1), pages 19-27, September.
    2. van den Berg, Jeroen P. & Sharp, Gunter P. & Gademann, A. J. R. M. (Noud) & Pochet, Yves, 1998. "Forward-reserve allocation in a warehouse with unit-load replenishments," European Journal of Operational Research, Elsevier, vol. 111(1), pages 98-113, November.
    3. N H Moin & S Salhi, 2007. "Inventory routing problems: a logistical overview," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1185-1194, September.
    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. 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.
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