The warehouse has powerful capacity for supply chains as needed TOU

The warehouse has powerful capacity for supply chains as needed

 TOU

The warehouse has powerful capacity for supply chains as needed

Credit: Pixabay / CC0 Public Domain

New research from the Rensselaer Polytechnic Institute shows that innovative business models that tap into additional warehouse space can be a viable solution for companies with changing demand requirements or tight-fitting windows.

Jennifer Bazor, Associate Professor in the Department of Industry and Systems Engineering at Rensiller, and Khan Unnu, Ph.D. However, an on-demand warehouse is only recommended if a company has eased response needs and the capacity of the planned on-demand services is high.

The article “Assessing Warehouses on Demand by Dynamic Facility Models”, published in IISE Transactions, was the first to develop an optimization model that incorporates on-demand computer properties into distribution-network design issues.

“On-Demand Warehouse is a new way for companies to build more dynamic, dynamic and collaborative supply chain networks, which can be very useful if they need to adapt to uncertain and changing needs,” Dr. Pasoor said. “However, such solutions come with new cost structures and risks. This research is exciting because it provides proven methods for companies interested in evaluating how best to adapt warehouses to demand in their supply chain networks.”

As people buy more and more products online, businesses of all sizes need distribution systems to bring their products to market. Traditional distribution centers require large buildings that come with a high investment cost, which creates the cost of preventing multiple companies from having multiple distribution locations.

The need for outsourcing distribution to a third party company that specializes in distribution through long-term leasing is the primary alternative for businesses. Nevertheless, these deals usually take a long time to negotiate and come up with minimal inventory requirements, which makes it difficult for a company to adjust their distribution network structure.

On-demand warehouse is the latest innovation that offers unused warehouse space and distribution capabilities in other companies’ supply chain networks. Taking advantage of these opportunities does not require long-term commitment to construct and operate a building, but they do have various cost configurations such as the cost of handling a board.

Dr. Basur developed the Dynamic Facility-Location Model, which simultaneously reviews the location and allocation results of three types of distribution centers to determine the conditions under which warehouses benefit customers.

Research shows that many factors, including on-demand capacity availability, responsiveness requirements and demand patterns, affect the low cost of use of this innovative model of product distribution.

“While warehousing may not be the best solution for every situation, it is very successful in supplementing traditional delivery methods,” said Dr. Basur said. “I think we need to think differently about how supply chains acquire, utilize and allocate resources to meet customer needs, and how we create business models and algorithms to utilize unused resources. Makes the most efficient use of self-distribution facilities. ”


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                                                                                            <strong>More info:</strong>
                                            Assessing warehouses as required by dynamic facility location models, Khan Unnu et al. <i>IISE Transactions</i> (2022) <a data-doi="1" href="https://dx.doi.org/10.1080/24725854.2021.2008066" target="_blank" rel="noopener">DOI: 10.1080 / 24725854.2021.2008066</a>

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                                             <strong>Quote</strong>: Powerful Capacity for On-Demand Warehouse Supply Chains (2022, 14 April) Retrieved 17 April 2022 from https://techxplore.com/news/2022-04-on-demand-warehousing-powerful-potential-chains.html





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