Consolidating warehouse network

While sourcing from several vendors makes good economic sense, the complexities arise when attempting to balance production runs against full container quantities and sales forecasts.Overstocking just to qualify for full container discounts is no longer necessary.

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Hence, a decision aid tool such as mixed integer linear programming needs to be done to find out the optimal location, number and size of warehouses in the redesigned network under capacity limits and service requirements.That allows us to see what warehouse statistics we need from each topic to see if our warehouse performs fast, accurate and cost efficient.Safety is the top priority in any Warehouse environment.One such example is the company named Stora Enso which improved its customer service level and on-time delivery due to improved control of the system, particularly through consolidation (Kohn et al 2008, p.

240) An important service measure is the order fill rate (ie order fulfillment reliability), probability of filling an entire customer order immediately from the shelf or within a specified time (Song 1998, p.831).

However, at this stage an assumption would be made based on the data available.

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