Material assignment and allocation decisions for forward and reserve warehouses
Digges, Edward D.
Gue, Kevin R.
Fields, Paul J.
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Many Defense Distribution Depots are configured with some warehouses closer to the input/output activity than others. By designating a closer warehouse as the forward warehouse and the more distant warehouses as reserve warehouses, overall picking costs can be reduced by assigning the proper mix of material to the forward warehouse. We show how to determine which material, allocated in what quantities, should be assigned to the forward and reserve warehouses. We use material data collected from Defense Distribution Depot, San Diego and apply four decision strategies to determine the allocation: Assign Similar Material Together, Assign by Popularity, Equal Time Supply, and Economic Assignment Quotient. The results show that material assignment and allocation decisions should consider the picking activity and physical characteristics of each item, as well as the len of time the forward-reserve configuration exists
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