Case Study of building Storage Strategy in the Logistics Distribution Center—Logistics Company A as an Example

Ching-Kuei Kao, Guo-Xia Xu, Xiao-Er Fang and Mei-Chun Zheng
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Ching-Kuei Kao: Department of Logistics Management, Beijing Institute of Technology, Zhuhai
Guo-Xia Xu: Department of Logistics Management, Beijing Institute of Technology, Zhuhai
Xiao-Er Fang: Department of Logistics Management, Beijing Institute of Technology, Zhuhai
Mei-Chun Zheng: Department of Logistics Management, Beijing Institute of Technology, Zhuhai.

European Journal of Engineering and Technology Research, 2018, vol. 3, issue 4, 40-47

Abstract: Storage and maintenance are essential in warehouse operation management. Accordingly, this study takes a logistics distribution center as the case. In this case, Logistics Company A and X Beverage Company establish a logistics partnership in the supply chain. Logistics Company A is responsible for designing and handling X Beverage Company’s cargo storage, transportation, and distribution businesses in big and small retail shops in Y region. Reducing the goods overstock, stock, and stock-out rate and improving the goods’ freshness are important because beverages are classified as fast-moving consumer goods. This study develops the storage strategy for goods in X Beverage Company through classified management of goods by activity-based classification (ABC) with the primary aim of increasing the efficiency of storage management. Second, goods stock and management strategies are developed with the aid of EIQ (entry, item, and quantity) analysis and in accordance with results of the ABC classification. Finally, the EOQ (economic ordering quantity) stock control model is established for large retailers and small retail stores.

Keywords: ABC Classification; EIQ Analysis; EOQ Model; Fast-Moving Consumer Goods; Logistics Distribution Center (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:epw:ejeng0:v:3:y:2018:i:4:id:60698

DOI: 10.24018/ejeng.2018.3.4.698

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