A Management Model for Reuse Closed-Loop Supply Chains: Scheduling of Replenishment Orders in the Piece Picking Area of a Warehouse



This seminar will be split in two presentations. First, we put forward a framework for reuse closed-loop supply chains. This conceptual model is grounded in a set of case studies and has been contrasted with existing literature. The main contribution of our work lies in the simultaneous consideration of different types of reusable articles (returnable transportation items, returnable primary packaging materials, products that are used multiple times) and the identification of the major issues arising in the management of these systems.
Second, we address the replenishment of the piece picking area in a warehouse. The productivity of broken-case picking operations can be increased by splitting an SKU inventory in a forward area (piece picking) and a reserve area (storage), although, on the other hand, this requires regular replenishments from one area to the other. The forward-reserve problem (FRP) is used to decide which products and in what quantities are to be stored in the forward area, so that the total cost of order picking and replenishment is minimized. A variant of the VRP and the TSP are used to batch picking orders and optimize picking paths. The possibility of stockouts in the picking racks is not considered, although they occur in industrial practice. We propose a procedure for scheduling forward area replenishment orders aiming at the reduction of stockout probability.
Contact information:

Daniel Potthoff

Wilco van den Heuvel