Collaborative optimization of assortment allocation among multiple warehouses in manufacturing production logistics

LI Jianbin, SONG Xiangrong, GUO Jinsheng, CAI Xueyuan

Systems Engineering - Theory & Practice ›› 2023, Vol. 43 ›› Issue (6) : 1736-1749.

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Systems Engineering - Theory & Practice ›› 2023, Vol. 43 ›› Issue (6) : 1736-1749. DOI: 10.12011/SETP2022-2211

Collaborative optimization of assortment allocation among multiple warehouses in manufacturing production logistics

  • LI Jianbin1, SONG Xiangrong1, GUO Jinsheng1, CAI Xueyuan2
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Abstract

To ensure product quality and production stability, the core manufacturing enterprises in the supply chain provide raw materials to both their own production workshops and external processing enterprises at the same time. Manufacturing enterprises need to deliver the raw materials required to the corresponding line-sidematerial warehouses in a timely and accurate manner, which increases their operational pressure and logistics costs. In order to reduce the production logistics cost and improve demand response speed, this paper studies the material allocation strategy among multiple warehouses in manufacturing. Considering the constraints such as the warehouse facility condition and capacity limit, we establish a mixed-integer programming model with the objective of minimizing the transportation cost and design a corresponding heuristic algorithm called greedy algorithm based on minimum incremental cost, which determines the category and quantity of materials to be stored in the warehouses. compared with the random allocation algorithm and loop algorithm, the algorithm we proposed can allocate materials to the appropriate warehouses more efficiently and reduce the transportation cost and order splitting rate. In addition, compared with the current situation of enterprise warehouse selection in real cases, the material allocation strategy obtained by the algorithm in this paper can save 53.03% of the transportation cost and reduce the order splitting rate by 21.47%. Both theoretical analysis and case analysis show that the method proposed in this paper can effectively reduce the transportation cost and order splitting rate, thereby improving the net profit and operation efficiency of the company.

Key words

production logistics / assortment optimization / greedy algorithm / order splitting rate

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LI Jianbin , SONG Xiangrong , GUO Jinsheng , CAI Xueyuan. Collaborative optimization of assortment allocation among multiple warehouses in manufacturing production logistics. Systems Engineering - Theory & Practice, 2023, 43(6): 1736-1749 https://doi.org/10.12011/SETP2022-2211

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Funding

National Natural Science Foundation of China (71831007, 72101192); Double First-Class Funds for Humanities and Social Sciences of Huazhong University of Science and Technology (Digital Intelligence Decision Optimization Innovation Team, 2021WKFZZX008); Humanities and Social Sciences Research Program of Education Department of Hubei Province (20Q066)
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