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In today’s competitive environment with increasingly faster deliveries and smaller order sizes, material handling providers are progressively developing new solutions. A more recent development in automated material-handling technology for unit load storage and retrieval is the autonomous vehicle storage and retrieval system (AVS/RS). The paper investigates the main design trade-offs for this new solution using simulation, and proposes a comprehensive design framework. Using data from a recently implemented AVS/RS, the application of the proposed framework is presented and the key design differences between the two types of AVS/RS configuration (i.e. tier-captive versus tier-to-tier) are identified. [ABSTRACT FROM PUBLISHER]

In today's competitive scenario of increasingly faster deliveries and smaller order sizes, material-handling providers are progressively developing new solutions. A recent, automated material-handling technology for unit load storage and retrieval consists of an autonomous vehicle storage and retrieval system (AVS/RS). The present paper presents an analytical model to estimate the performances (the transaction cycle time and waiting times) of AVS/RS for product tote movement. The model is based on an open queuing network approach. The model effectiveness in performance estimation is validated through simulation. [ABSTRACT FROM PUBLISHER]

The paper presents an analytical approach to layout design of the picking area in low-level, picker-to-part systems using COI (cube per order index)-based and random storage policies. The layout of the picking area is one of the major issues in increasing picking system productivity, i.e. in reducing the time required to complete a given set of orders, and must take account of the inter-relationship between the main operating policies, i.e. storage, routing and batching. The main system parameters affecting the layout design are the total length of the picking aisles, the number of pick stops per tour and the shape of the COI-based ABC curve. A formula that relates the optimal number of aisles to the above parameters will be presented, together with the increase in the expected tour distance stemming from the adoption of a non-optimal number of aisles. The study thus provides a comprehensive framework for layout design. [ABSTRACT FROM AUTHOR]

The Third-party Logistics (3PL) industry is facing both important growth rates and increasing competitive pressure. 3PL providers are required to continuously sustain a more and more competitive cost structure (i.e. efficiency) and develop capabilities to improve their services (i.e. innovation); hence, the evaluation of these key success factors is considered a key issue. This paper develops a quantitative analysis of 71 Italian 3PL providers by using Data Envelopment Analysis to jointly assess efficiency and innovation. Furthermore, through a case study research, it corroborates the quantitative results by investigating the strategies of best-in-class companies. Results allowed identifying 13 3PL providers as efficiency leaders and 6 as leaders from both the efficiency and the innovation side. Their input composition indicates a diversification of the business models. A breakdown of the analysis by size and industry focus, along with empirical evidence on the strategies enhancing efficiency and innovation, is also provided. [ABSTRACT FROM PUBLISHER]

The aim of this research is to investigate the state of the art in the adoption of order picking systems (OPS) and provide a broad empirical analysis built on a cross-section of 40 Italian distribution or factory warehouses. The analysis is based on multiple case studies. Semi-structured interviews were conducted with management at leading companies operating in different industries, and results are discussed with reference to the literature. The study provides an insight into the types of OPS adopted at distribution or factory warehouses. Results show the OPS type implemented, their automation level, and the main information and communication technology systems in place to support picking activities. The findings offer interesting views on how and where the different types of OPS may be appropriate based on contextual requirements.The paper fulfils an identified need for in-depth case studies on OPS focusing on their adoption level and implementation process (i.e. motivations and barriers to adoption) in warehouses and suggests areas for future research. [ABSTRACT FROM AUTHOR]

This article examines the impact of centralization and decentralization on safety stock for two-echelon distribution systems. In the case of order-point systems, which are widely used in industrial inventory management procurement lead times are equal to the order-delivery cycle time between the central warehouse and the supplier, whereas transit lead times are equal to the order-delivery cycle time between remote warehouses and the central warehouse. The choice between an independent system and a coupled system has a great impact on safety stock holding costs, which are a main component of overall distribution costs. As to the amount of safety stock, the difference between the two systems can range from 10% to 50% for a distribution system made up of about 20 remote warehouses, given a low level of correlation between local demands. An independent system is characterized by a location-based demand aggregation leading to savings in safety stock, since the central warehouse is subject to the overall demand variations of all geographic areas. Conversely, a coupled system is characterized by a time-based demand aggregation, since its stock is capable of meeting local demand variations during the whole time span resulting from the addition of procurement and transit lead times.