Business Commons^™

Scalable Heuristic For Locating Distribution Centers On Real Road Networks, Saeed Ghanbartehrani, Jose David Porter

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

The median problem is a type of network location problem that aims at finding a node with the total minimum demand weighted distance to a set of demand points in a weighted graph. In this research, an algorithm for solving the median problem on real road networks is proposed. The proposed algorithm, referred to as the Multi-Threaded Dijkstra’s (MTD) algorithm, is used to locate Walmart distribution centers on the 28-million node road network of the United States with the objective of minimizing the total demand weighted transportation cost. The resulting optimal location configuration of Walmart distribution centers improves the total …

Integrated Intermodal Network Design With Nonlinear Inter-Hub Movement Costs, Mohammad Ghane-Ezabadi, Hector A. Vergara

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

In this research, transportation mode and load route selection problems are integrated with the hub location problem in a single mathematical formulation to find the optimal design of intermodal transportation networks. Economies of scale are modeled utilizing a stepwise function that relates the per container transportation cost to the amount of flow between two nodes. A heuristic method combining a genetic algorithm and the shortest path algorithm was developed to solve this integrated planning problem. Computational experiments were completed to evaluate the performance of the proposed heuristic for different problem instances. At the end, conclusions are presented and future research …

Shuttle-Based Storage And Retrieval Systems With Robotic Order-Picking Shuttle Carrier, Tone Lerher

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Shuttle-based storage and retrieval systems with robotic order picking shuttle carrier are relatively new systems not yet address in automated storage system research. The objective of this research paper is to propose analytical model for robotic order picking shuttle carriers. Analytical expressions for the calculation of multi cycle have been determined by assuming uniform distributed order-picking locations and the probability theory. The proposed model enables the calculation of the expected travel (cycle) time for multiple command cycles of the robotic order picking shuttle carrier, from which the throughput performance can be evaluated.

Batching In Bucket Brigade Order Picking, Yossi Bukchin, Eran Hanany, Eugene Khmelnitsky

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Order picking is the most labor cost consuming element in warehouse operations. In this paper, we consider an order picking process in a single picking aisle in the forward pick area, consisting of multiple locations (pick faces). The picking is performed by a group of pickers, each characterized by stochastic (forward and backward) walking process and picking times. We assume that the bucket brigade (BB) approach is applied, in a static environment, in which a given set of orders has to be picked. In order to improve the picking process, we suggest a batching procedure, where the objective is to …

Deployment Of An Distributed Strategic Material Flow Control For Automated Material Flow Systems Consisting Of Autonomous Modules, Christian Lieberoth-Leden, Johannes Fottner

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

The modularisation of hardware and software is one approach to handle the demand for increasing flexibility and changeability of automated material flow systems that are, for example, utilised in flexible production systems. In such automated material flow systems, autonomous modules communicate with each other to coordinate and execute transport tasks. In this paper a strategic material flow control is introduced, which is distributed on several modules realised with a multi-agent system. The strategic material flow control agent coordinates transport tasks with advanced logistical requirements, such as sequencing. A transport task states for a transport unit the system source and sink …

A Practical Collaborative Material Handling Strategy For Cross-Docks, Hector J. Carlo, Stephanie Santiago-Montano

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

The current operational paradigm at less-than- truckload (LTL) cross-dock industry (i.e., dedicated strategy) is to assign one material handler (MH) per inbound trailer. As a consequence, each loaded trip performed by a MH to move a load from the assigned inbound door to the loads’ corresponding outbound door is followed by an identical empty trip to return to the inbound door. This paper introduces the monomaniacal strategy as a practical rule-based material handling collaborative strategy for LTLs designed to minimize the total empty travel. In the monomaniacal strategy, after delivering a load to an outbound door, MHs travel counterclockwise to …

A Measurement Tool For Circular Economy Practices: A Case Study In Pallet Supply Chains, Maria Grazia Gnoni, Fabiana Tornese, Brian K. Thorn, Andres L. Carrano, Jennifer A. Pazour

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

A circular economy (CE) is an economic system where products and services are traded in closed loops or ‘cycles’. This work develops a framework for assessing the extent to which product supply chains incorporate circular economy principles, and applies this framework to a specific material handling application, the wooden pallet supply chain. The main decisions affecting circularity and the most common decision alternatives for the wooden pallet supply chain are identified for the Pre-manufacturing, manufacturing, product delivery, customer use, and end-of-life phases. A streamlined life cycle assessment tool is developed for supporting a quick analysis about how the level of …

On The Unique Features And Benefits Of On-Demand Distribution Models, Jennifer A. Pazour, Kaan Unnu

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

To close the gap between current distribution operations and today’s customer expectations, firms need to think differently about how resources are acquired, managed and allocated to fulfill customer requests. Rather than optimize planned resource capacity acquired through ownership or long- term partnerships, this work focuses on a specific supply-side innovation – on-demand distribution platforms. On-demand distribution systems move, store, and fulfill goods by matching autonomous suppliers' resources (warehouse space, fulfillment capacity, truck space, delivery services) to requests on-demand. On-demand warehousing systems can provide resource elasticity by allowing capacity decisions to be made at a finer granularity (at the pallet-level) and …

Synthetic Order Data Generator For Picking Data, Mohammadnaser Ansari, Behnam Rasoolian, Jeffrey S. Smith

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Sample data are in high demand for testing and benchmarking purposes. Like many other fields, warehousing and specifically order picking process are not exempt from the need for sample data. Sample data are used in order picking pro- cesses as a way of testing new methodologies such as new routing and new storage allocation approaches. Unfortunately, access to real order picking data is limited because of confidentiality and privacy issues which make it difficult to obtain practical results from the new methodologies. On the other hand, order data follows a highly complex and correlated structure that cannot be easily extracted …

Optimization Of A Fast-Pick Area In A Cosmetics Distribution Center, Mario C. Velez-Gallego, Alice E. Smith

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Fast-pick areas are commonly used in order picking warehouses to improve labor efficiency by concentrating picking activities within a compact area, thus minimizing the distance traveled by the pickers. One problem that must be solved when a fast-pick area is to be implemented is the so-called assignment-allocation problem. This deals with deciding which products should be assigned to the fast-pick area, and how much space should be allocated to these products. This research was motivated by the picking operation of a cosmetics distribution center where several fast-pick areas are in place. A mixed integer linear programming formulation is proposed for …

Service Flow Networks For Functional Design Of Distribution Centers, Michael Schmidt, Detlef Spee, Michael Ten Hompel

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

This work deals with the determination of an approach for concept planning of distribution centers. For this purpose, the "Distribution Center Design Process" is defined. Solution concepts for logistics centers are developed and evaluated in an eight-step process. In particular, it will be focused on formalization of the functional area, which has not been considered scientifically, yet. This results, among other things, in the definition of services and basic transformation properties of handling units. These can be used to create and semantically test service flow networks, which describe the functional sequence and transformations of service objects in distribution centers.

Progress In Autonomous Picking As Demonstrated By The Amazon Robotic Challenge, Dominik Colling, Jonathan Dziedzitz, Kai Furmans, Patric Hopfgarten, Kai Markert

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

The automation of the picking process is a longheld dream in intra-logistics. while the expert judgment in recent years was, that there is no immediate applicability to be expected for applications in areas, where the variety of products is high. However, the recent advances in computer science, mechanical engineering and material handling systems design have moved the field substantially forward. In this article we want to show, how the Amazon Robotic Challenge has driven this development process and how capable the technology is. The Amazon robotic Challenge (ARC) and its increasingly difficult challenges are described first. Then the applied technology …

The Small World Of Material Handling Research, Parag J. Siddique, Kevin Gue, Md Salahuddin Ayuby

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Using data from 88 journals over an 8 year period, we investigate the relationships among researchers in material handling. We apply social network analysis to measure many attributes of the network, including papers published each year, papers published per author, number of collaborators per author, strength of collaboration between authors, and how influential an author is in the network. We observe that collaboration patterns in material handling follow a scale-free structure in the presence of some hub-like researchers. According to social network theory, these hub researchers facilitate rapid dissemination of knowledge in the network. We conclude that the scientific community …

A Design Methodology To Optimize Supply Chain Network Performance, Dheeraporn Nippaya, J. David Porter

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Organizations are constantly looking for new ways to reduce costs while still providing high customer service levels to face stringent competitive environments and the ever- increasing market globalization. An alternative these organizations can pursue to respond to these challenges and to gain a competitive differentiation is to optimize their supply chain network (SCN). This research aims to develop an effective SCN design strategy to locate facilities (i.e., plants and distribution centers) and to balance the allocation of customers to these facilities to satisfy capacity limitations and customer demands with minimum total cost and maximum level of service. It is anticipated …

Economic And Performance Analysis Of Dual-Bay Vertical Lift Modules, Fabio Sgarbossa, Martina Calzavara, Alessandro Persona

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Warehouse picking is one of the most time and cost consuming activities in a warehouse, often requiring the presence of human operators, who travel within the aisles to retrieve the items needed by the customers. Several studies demonstrate that the travelling activity can represent even the 50% of the total picking time, with a subsequent creation of a separate storage and picking area for small objects. In the last years, new solutions for order picking systems have been developed, especially for small items. One of these solutions requires Vertical Lift Modules (VLMs), storage columns with extractable trays. In this paper, …

Collaborative Bots In Distribution Centers, Russell D. Meller, Dima Nazzal, Lisa M. Thomas

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

This research investigates the business case for using autonomous collaborative robots (“bots”) in warehouses. Bots are designed to work collaboratively with human workers in warehouses to fill orders, primarily in e-commerce environments. In order-picking applications, a bot knows the location of every item in the warehouse, and when an item needs to be picked for an order, the bot navigates to that item and waits. Human workers are assigned to patrol specific zones, and when they see a bot waiting, the worker walks to the bot, reads the instructions off the screen, executes the task, and moves on. The bot …

A Performance Calculator For Shuttle-Based Storage And Retrieval System Design, Banu Yetkin Ekren, Anil Akpunar, Tone Lerher

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

In this study, we present an analytical model based tool that can estimate critical performance measures from a pre-defined shuttle-based storage and retrieval system (SBS/RS) design. SBS/RS is relatively a new automated storage and retrieval technology and mostly used for mini-load material handling. In this study, we develop an open queuing network model based tool estimating critical performance measures: the mean travel time of lifts/shuttles, utilization of lifts/shuttles, amount of energy consumption and energy regeneration per transaction, waiting times and number of jobs waiting in queues, etc., from a pre-defined SBS/RS design. By the developed tool, one can evaluate an …

Urban Parcel Logistics Hub And Network Design: The Impact Of Modularity And Hyperconnectivity, Benoit Montreuil, Shannon Buckley, Louis Faugere, Reem Khir, Shahab Derhami

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

This paper examines how exploiting the hyperconnectivity and modularity concepts underpinning the Physical Internet enables the parcel logistics industry to meet the worldwide challenges to efficiently and sustainably offer faster and more precise deliveries across urban agglomerations, notably across the world’s megacities. It emphasizes disruptive transformations of package logistics hubs and networks, such as multi-tier world pixelization, multi-plane parcel logistics web, smart dynamic parcel routing and hub-based consolidation, and modular parcel containerization.

Dynamic Batching For Order Picking In Warehouses, Jelmer Pier Van Der Gaast, Bolor Jargalsaikhan, Kees Jan Roodbergen

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

Dynamic batch picking is characterized by combining product demand from multiple customer orders into one pick tour where new orders are continuously received. Using modern order-picking aids, updated picking instructions can be included in the current pick tours which allows pickers to be re-routed to pick for new orders even when they already started a pick tour. We develop a mathematical model for dynamic batch picking that minimizes the order throughput time of incoming customer orders. In case of new order arrivals, we can quickly re-optimize the model and determine new updated pick tours. This allows for short order throughput …

Differences In The Throughput Performance Of The Warehouse Depending On The Quality Of The Calculation Parameters, David Sourek

15th IMHRC Proceedings (Savannah, Georgia. USA – 2018)

This article explores the quality level of the parameters that are used to determine the throughput performance of the warehouse. In our model case, this is a rack warehouse where the storage and picking of goods is ensured by forklifts. All kind of goods are stored on pallets. The aim of our research is to assess to what extent the quality level (accuracy) of the description of warehouse processes influences the accuracy of the determination of the throughput performance of the warehouse. In the first part of the article, we defined the parameters and the ways in which different levels …

Planning And Implementing A Graduate Online Team Taught Marketing Course, Rajasree K. Rajamma, Michael Sciandra

AMTP Proceedings 2018

Online courses have become an important educational delivery tool for institutions of higher learning throughout the world. While popular among students and administrators, many faculty members have expressed concerns with online courses. Therefore, this paper highlights online team teaching as a potential solution to concerns harbored by faculty members. In particular, we discuss the planning, coordination, and implementation of a graduate online team taught marketing course and offer an instructional example to alleviate some of the issues with online teaching. Importantly, this paper explores online team teaching from the perspective of marketing faculty and outlines positive educator outcomes associated with …

Why New Car Dealers Sell Used Cars: A Structural Analysis Of The Impact Of Used Car Markets On The Automobile Distribution Channel, Dinakar Jayarajan, S. Siddarth, Jorge Silva-Risso

AMTP Proceedings 2018

Most new car dealers also sell used cars from the same physical location. Used cars sold by these dealers are relatively good substitutes for new cars and thus, could compete with the new cars sold by the dealers. Previous empirical research on the automobile market has mostly ignored the presence of the used car market while the analytical literature provides ambivalent suggestions. In this paper, we study how the availability of used cars at new car dealers affects the substitution between new and used cars as well as how it affects the margins and profits obtained by the dealer and …

Retail Salesperson’S Influence On India’S Lonely Consumers, Cindy B. Rippé, Brent Smith, Alan J. Dubinsky

AMTP Proceedings 2018

Many consumers in India experience loneliness and social isolation. Some may resort to shopping for a social experience, attempting to mitigate or remedy their situation. Looking to this key emerging market, we investigate how emotional loneliness, social loneliness, and social isolation influence enjoyment of social interaction with an in-store salesperson (ESIS). We also consider whether adaptive selling and predisposition to comply with salesperson input (PCSI) influence consumers’ trust in salesperson, purchase intention, and retail patronage. We utilize partial least squares structural equation modeling with a sample of 303 Indian consumers. Additionally, we provide two importance-performance mapping analyses, which offer additional …

Timing Of Market Entry For New Products: An Exploratory Case Study Of The Success Factors For Pioneering And Following, Eunsang Yoon, Hyeonjin Rim

AMTP Proceedings 2018

Launching a new product at the optimal time is imperative for the successful entry and penetration in the competitive market. Expectations of customers, responses of competitors, challenges of emerging start-ups, shortening of product life cycles, and global alliance of corporations are some of the evolving factors that are relevant to the timing decisions for a new product. This paper re-examines the timing-related strategic issues, reports an exploratory case study of the ninety-two pioneering or following market entries, and discusses the managerial implications for a firm’s market-entry decisions for a new product or service.

The Consequences Of Business Model Innovation On Market Orientation And Stakeholder Orientation In Disruptive Firms, Zach Moore

AMTP Proceedings 2018

Disruption is the new paradigm of business. Nearly a day goes by without the popular business press heralding a new “disruptor” that has come to lay waste to the existing industrial landscape and radically alter the way in which humanity will live. While this may seem like hyperbole, it is not entirely without merit. The past few decades have seen a tremendous growth of innovations that have caused widespread changes in the ways firms do business. As such, it is essential to understand the antecedents and consequences of innovation and disruption on firms.

In the taxonomy of innovation, there are …

Internal Services Brand Orientation: Comparing The Perspectives Of Managers, Employees, And Customers, Ceren Ekebas-Turedi, Musa Pinar, Paul Trapp, Tulay Girard

AMTP Proceedings 2018

Brand orientation plays an important role in creating competitive advantage. The success of a brand depends on the extent of the harmony between managerially advocated brand orientation, effective implementation of the brand orientation by staff, and appreciation of the brand orientation by customers. This requires brand orientation to be implemented during each touch point of the service delivery process, as the delivery of the brand is experienced by consumers in a process of co-creation with the service provider.

To have a successful brand orientation, it is necessary to examine the perceptions of management, contact personnel, and consumers to discover if …

An Exploratory Study On Ethical And Legal Issues Of Marketing Strategies In The Cigarette Industry: Perspectives On E-Cigarettes, Jason Bruce Kilby, Ismet Anitsal, Melek Meral Anitsal

AMTP Proceedings 2018

Cigarette and E-Cigarette companies use different marketing strategies to promote their product. Some of these marketing strategies could be considered by many to be both unethical as well as illegal. Many ethical and legal issues surround the cigarette industry and these same issues could be relevant in the emerging E-cigarette industry. This research organized cigarette industry behavior into a matrix where a behavior was classified on whether it was ethical, unethical, legal or illegal. In order for a behavior to be considered ethical it must meet the minimum standard of being legal except under moral exception. What is considered to …

Materialism And Consumer Purchases An Exploratory Study: Are There Segments Of Materialistic Consumers?, Rick Mathisen, David Burns, Jennifer Hutchins

AMTP Proceedings 2018

Research on materialism has focused on the Richins Materialism constructs. The study focused on the relationship between materialism constructs, the positive and negative affect toward rivals and consumer purchase strategies when a rival purchased a product. Three segments of materialistic consumers were identified. Each segment model had different significant paths from the three short-form Richins Materialism constructs to the affect constructs and purchase constructs. PLSSEM and FIMIX analysis was used to develop the path models and segments by identifying unobserved heterogeneity in the data. The results indicate that not all consumers may exhibit the same materialism profiles as they are …

"No Triclosan Ever!": Effects Of Absence Framing Of Novel Product Ingredients On Consumer Evaluations., Tim Ozcan, Ahmet Hattat, Michael Hair

AMTP Proceedings 2018

We investigated effectiveness of promoting novel ingredients either with presence or absence positioning – both are common in marketplace (e.g. Secret® deodorant visibly claims “aluminum chlorohydrate” while Crystal® promotes “no aluminum chlorohydrate”). Initial study results show that consumers have more positive evaluations and purchase intentions for absence framing than presence framing and this effect is mediated by protection-related goals. After reviewing the literature in green/sustainable product attributes and regulatory focus, we show that absence-framed ingredients have better consumer evaluations when consumers are in the prevention mindset. Conversely, we show that, when customers are in promotion mindset and looking for a …

Impact Of Acculturation And Internal And External Influences On Food Consumption Behavior Among Asian American Ethnic Groups, Ryan W. Kota, Sindy Chapa

AMTP Proceedings 2018

Retail food sales in the United States surpassed $5 trillion annually in 2015 and this number is on the rise. As a growing industry, it is important to understand what factors influence consumption. In this paper, the authors report on data collected from an ethnic segment that is growing in terms of overall population and spending power in the U. S.; Asian Americans. Through analyses of internal and external influences, and measurement of acculturation across 1,284 respondents, the authors are able to suggest that more acculturated individuals are more prone to be influenced by external factors (i.e., other foods and …