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As logistics and distribution emerge as major disciplines, more rigorous and advanced analysis is required on each of the major decision areas within the total logistic and distribution systems. This article concentrates on the warehouse location problem, reviewing comparatively a taxonomy of quantitative methods applied in logistics management. The paper stresses the advantages and limitations of each of the techniques and their possible practical applications, suggesting a feasible alogarithm for dealing with the “Warehouse Location Problem”.

Order picking, the assembly of a customer’s order from items in storage, is an essential link in the supply chain and is the major cost component of warehousing. The critical issue is to simultaneously reduce the cost and increase the speed of the order picking activity. The main objectives are to: evaluate various routeing policies in a random storage environment; evaluate the impact of warehouse shape and pick‐up/drop‐off location; and examine the interaction of the routeing policies, warehouse shape, and pick‐up/drop‐off location under different pick list sizes. The experimental results clearly indicate that the optimal routeing procedure generates significantly shorter routes than heuristic methods. The composite and largest gap routeing policies are, however, significantly better than simpler heuristic procedures. Further testing, in addition, indicates that the shape of the warehouse and the location of the pick‐up/drop‐off point can affect the picking efficiency.

A very important concern of physical distribution managers is deciding the location of warehouses (distribution centres or depots). It is, therefore, not surprising that this location problem has been receiving considerable research attention and indeed, some impact has been made in actual industrial warehouse location decisions. The interested reader is referred to the expository articles, which describe both the theoretical developments and some practical applications of the theory.

Retail warehousing is a subject of great topicality and interest. The property and planning press regularly contains new superlatives describing the behaviour of this sector of the retail industry. ‘…furniture and DIY warehouse sales were £658 million in 1984 showing a growth of 25% per annum since 1981.’ ‘Since 1977 retail warehouse rents have increased by a staggering 16.5 per cent per annum…compared with 13.0 per cent per annum for prime town centre retail rents.’ In 1986 there were current planning applications for more than 1.75m sq. ft of retail warehousing in the outer south east alone and ‘there are now over 1,000 stores in the country, with an estimated 40 chains currently seeking sites for 1,900 out‐of‐centre stores.’ Such statements distract the attention and make more difficult an examination of the factors which have underlain the emergence and remarkable growth of retail warehouses. Retail warehouses are one particular type of retail outlet and should be considered within the context of those wider trends evident in the retail sector as a whole.

This is a statement of just how much change warehousing has undergone in recent years and how different warehouse requirements are now. Companies which fail to realise these changes and to analyse and evaluate their own warehousing stock are at risk of losing their competitive position.

Details an investigation into the extent to which electronic data interchange (EDI) is used in warehouses to communicate with suppliers (as opposed to customers). A questionnaire distributed to warehouse managers was used. Reports results indicate that EDI is used to a large extent in the warehousing function; in fact, warehousing personnel, working with customers, contributed to the development of their firms′ EDI systems. While EDI use was strong on the outbound side, its use at the warehouse‐supplier interface was relatively non‐existent. For similar communications with suppliers, warehouse managers will need to take the lead, as the development of the information‐exchange systems appears to be customer‐driven.

Deals with the issues related to the implementation, in a manual finished goods warehouse, of an ERP information system aimed at improving warehouse internal logistics efficiency. Specifically it is observed that the mere implementation of an integrated warehouse management information system does not actually guarantee the optimization of warehouse logistics. Rather, to improve the overall systems efficiency, it is required that ERP implementation be combined with the redesign and the reorganization of warehouse logistics and processes. This means that to achieve an effective synergic effect and thus effectively increase systems efficiency, both these steps have to be undertaken concurrently, grounding the reorganization and redesign phase on the implementation fallouts )in first place higher traceability levels gained(. The whole project is then applied to a real case of a finished goods manual warehouse, with pile storage systems.

Warehousing remains the most frequently outsourced logistics activity, but empirical research on the third‐party selection process for warehousing remains scarce. The main goals of this research were to identify the most critical factors to customers during third‐party warehousing selection and to compare the perceived performance levels of national and regional third‐party firms on each of the selection criteria. Surveys were sent to warehousing customers in several industries. Responsiveness to service needs, quality of management, and track record of ethical importance were rated by customers as the most important selection criteria. Results indicate that respondents also rated the performance of the typical regional third‐party warehousing firm as significantly better than national firms on six different criteria while national firms were rated significantly higher on only one criterion. It is hoped that this research can provide guidance to logistics managers as they evaluate third‐party warehousing options.

This research investigates how to optimize storage location assignment to decrease the order picking time and the waiting time of orders in the staging area of low-temperature logistics centers, with the goal of reducing food loss caused by temperature abuse.

The authors applied ABC clustering to the products in a simulated database of historical orders modeled after the actual order pattern of a large cold logistics company; then, the authors mined the association rules and calculated the sales volume correlation indices of the ordered products. Finally, the authors generated three different simulated order databases to compare order picking time and waiting time of orders in the staging area under eight different storage location assignment strategies.

All the eight proposed storage location assignment strategies significantly improve the order picking time (by up to 8%) and the waiting time of orders in the staging area (by up to 22%) compared with random placement.

The results of this research are based on a case study and simulated data, which implies that, if the best performing strategies are applied to different environments, the extent of the improvements may vary. Additionally, the authors only considered specific settings in terms of order picker routing, zoning and batching: other settings may lead to different results.

A storage location assignment strategy that adopts dispersion and takes into consideration ABC clustering and shipping frequency provides the best performance in minimizing order picker's travel distance, order picking time, and waiting time of orders in the staging area. Other strategies may be a better fit if the company's objectives differ.

Previous research on optimal storage location assignment rarely considered item association rules based on sales volume correlation. This study combines such rules with several storage planning strategies, ABC clustering, and two warehouse layouts; then, it evaluates their performance compared to the random placement, to find which one minimizes the order picking time and the order waiting time in the staging area, with a 30-min time limit to preserve the integrity of the cold chain. Order picking under these conditions was rarely studied before, because they may be irrelevant when dealing with temperature-insensitive items but become critical in cold warehouses to prevent temperature abuse.