scholarly journals A framework for designing backroom areas in grocery stores

2017 ◽  
Vol 45 (3) ◽  
pp. 230-252 ◽  
Author(s):  
Maria Pires ◽  
Joaquim Pratas ◽  
Jorge Liz ◽  
Pedro Amorim

Purpose The design of retail backroom storage areas has great impact on in-store operations, customer service level and on store life-cycle costs. Moreover, backroom storage in modern retail grocery stores is critical to several functions, such as acting as a buffer against strong demand lifts yielded by an ever-increasing promotional activity, stocking seasonal peak demand and accommodating e-commerce activities. The purpose of this paper is to propose a framework to design retail backroom storage area. Furthermore, the authors aim to draw attention to the lack of literature on this topic, while clarifying the relationship between this promising research stream and the considerable body of research regarding the design and operations of conventional warehouses, as well as retail in-store operations. Design/methodology/approach The key literature on backrooms, grocery retail, in-store operations, warehouse design and operations was reviewed. This allowed an understanding of the gap in the literature regarding the design of backrooms. Moreover, a case study methodological approach was conducted in a Portuguese retailer to extend the literature review. Findings Despite having functions similar to conventional warehouses, backroom storage facilities have particularities that deserve a distinct analysis. Thus, the authors stress these differences and demonstrate how they influence the development of a novel backroom design framework. Originality/value This paper fills a gap by proposing a framework to design backroom areas. Furthermore, this research may help practitioners to better design backroom areas, since this process currently lacks a formal and standardized procedure.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah

PurposeThe assorted piece-wise retail orders in a cosmetics warehouse are fulfilled through a separate fast-picking area called Forward Buffer (FB). This study determines “just-right” size of FB to ensure desired Customer Service Level (CSL) at least storage wastages. It also investigates the impact of FB capacity and demand variations on FB leanness.Design/methodology/approachA Value Stream Mapping (VSM) tool is applied to analyse the warehouse activities and mathematical model is implemented in MATLAB to quantify the leanness at desired CSL. A comprehensive framework is developed to determine lean FB buffer size for a Retail Distribution Centre (RDC) of a cosmetics industry.FindingsThe CSL increases monotonically; however, the results concerning spent efforts towards CSL improvement gets diminished with raised demand variances. The desired CSL can be achieved at least FB capacity and fewer Storage Waste (SW) as it shifts towards more lean system regime. It is not possible to improve Value Added (VA) time beyond certain constraints and therefore, it is recommended to reduce Non-Value Added (NVA) order processing activities to improve leanness.Research limitations/implicationsThis study determines “just-right” capacity and investigates the impact of buffer and demand variations on leanness. It helps managers to analyse warehouse processes and design customized distribution policies in food, beverage and retail grocery warehouse.Practical implicationsProposed buffering model offers customized strategies beyond pre-set CSL by varying it dynamically to reduce wastages. The mathematical model deriving lean sizing and mitigation guidelines are constructive development for managers.Originality/valueThis research provides an inventive approach of VSM model and Mathematical algorithm endorsing lean thinking to design effective buffering policies in a forward warehouse.


2016 ◽  
Vol 28 (4) ◽  
pp. 393-401 ◽  
Author(s):  
Dejan Mirčetić ◽  
Nebojša Ralević ◽  
Svetlana Nikoličić ◽  
Marinko Maslarić ◽  
Đurđica Stojanović

The paper focuses on the problem of forklifts engagement in warehouse loading operations. Two expert system (ES) models are created using several machine learning (ML) models. Models try to mimic expert decisions while determining the forklifts engagement in the loading operation. Different ML models are evaluated and adaptive neuro fuzzy inference system (ANFIS) and classification and regression trees (CART) are chosen as the ones which have shown best results for the research purpose. As a case study, a central warehouse of a beverage company was used. In a beverage distribution chain, the proper engagement of forklifts in a loading operation is crucial for maintaining the defined customer service level. The created ES models represent a new approach for the rationalization of the forklifts usage, particularly for solving the problem of the forklifts engagement incargo loading. They are simple, easy to understand, reliable, and practically applicable tool for deciding on the engagement of the forklifts in a loading operation.


2016 ◽  
Vol 16 (4) ◽  
pp. 526-544 ◽  
Author(s):  
Salvador Noriega Morales ◽  
Adán Valles Ch. ◽  
Vianey Torres-Argüelles ◽  
Erwin Martínez G. ◽  
Andrés Hernández G.

Purpose This paper aims to describe the application of several Six Sigma tools to explain the improvement changes needed in a company that manufactures concrete blocks. The paper explains the methodology and the tools of the Six Sigma system, their use in the project, the application of the DMAIC (Define, Measure, Analyse, Improve and Control) process for the identification and definition of the problems, the related performance variables and the results obtained. Design/methodology/approach The paper reports the research made to improve the production of concrete blocks, specifically, the application of the DMAIC process, which is part of the Six Sigma methodologies; DMAIC stands for Definition of the problem, Measurement of the performance, Analysis using specific statistical methods and tools, Improvement the factors that cause the problem and Control the processes to ensure that the problem will not occur again. Each of those steps is explained in detail in the paper, which also presents the application of other improvement techniques. Findings The results show the adaptability and relevance of Six Sigma for the improvement of production operations. It is clearly demonstrated that it leads to benefits such as the elimination of machine downtime, reduction of scrap from 18 to 2 per cent and the improvements made in plant layout and production facilities to increase the productivity. Research limitations/implications In improvement projects, the differential between the initial and final conditions varies, depending on the magnitude of the problems or potential opportunities. Although this paper describes only the application of Six Sigma, the methodology has a wide potential application in most manufacturing industries. Practical implications With the Six Sigma and DMAIC tools’ application and the improvement process, the agility obtained is driving a more mechanized perspective of production operations. The customer service level was increased, through fast deliveries of complete orders. This project shows that the application of the Six Sigma methodology is feasible and produces attractive financial and operational results in this segment of the construction industry. Originality/value The companies dedicated to the production of concrete blocks commonly reproduce the systems and standards of the industry, which are commonly designed around civil engineering and technical issues. Thus, the application of improvement tools is exceptional in manufacturing environments. Although this paper is just one application of the methodology, it explains in detail the DMAIC use for companies that are committed to the development of new competencies to increase their competitiveness.


Kybernetes ◽  
2015 ◽  
Vol 44 (2) ◽  
pp. 176-185 ◽  
Author(s):  
Kazim Sari

Purpose – The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing errors in inventory information are compared with those of lead time reduction and supply chain collaboration. Design/methodology/approach – A simulation model is constructed to perform the analysis. Findings – Results show that lead time reduction is the most important strategy for a supply chain in reducing total supply chain cost. In terms of customer service level, on the other hand, strategy of reducing errors in inventory information is observed as the most considerable strategy. However, the results for supply chain collaboration are somewhat unexpected. Namely, in spite of its popularity, supply chain collaboration provides very limited contribution to the supply chain. Practical implications – This research provides useful knowledge for the managers of a business enterprise in prioritizing various supply chain strategies. Originality/value – In supply chain management literature, greater emphasis is given to lead time reduction and supply chain collaboration than dealing with errors in inventory information. This research makes it clear that errors in inventory information should not be underestimated.


2016 ◽  
Vol 29 (6) ◽  
pp. 887-902 ◽  
Author(s):  
Asif Salam ◽  
Farhad Panahifar ◽  
P.J. Byrne

Purpose In today’s competitive retail industry the most critical success factor is customer service which is indicated by product availability. It is argued that in the retail industry, product availability is an important measure of quality. The single most vital decision that every retailer needs to make is, how to maximize service level while keeping minimum inventory level. The purpose of this paper is to explain and demonstrate the relationship between inventory level and customer service level. Design/methodology/approach This study examines an inventory system utilizing a simulation model based on company data obtained from a retail fast-moving-consumer goods chain operating in Thailand. Findings The results suggest that the achievement of a responsive service level is dependent on managing an efficient supply chain in addition to logistics cost reductions. The findings also reveal the effect the inventory level has on the service level. From the findings of this study, demand variability and service level have been found to have the most significant influence on the inventory level. From the findings, it can also be shown that real and accurate information is very important for service supply chains. Practical implications The paper promotes the importance of having an appropriate inventory management policy for a retail chain which should be driven by retail companies in order to better balance inventory and service levels. Originality/value The relationship between the inventory level and customer service level lead to different outcomes at different combinations of inventory and service levels. Significant relationships were found between inventory and service levels.


Facilities ◽  
2016 ◽  
Vol 34 (9/10) ◽  
pp. 595-610 ◽  
Author(s):  
Samir K. Srivastava ◽  
Abhilash Amula ◽  
Prakash Ghagare

Purpose The purpose of this paper is to present issues and challenges faced during a firm’s facility relocation decision aimed at improving both cost and service performance in an innovative service context. Design/methodology/approach The reader is given background of the decision-making process behind single service facility relocation decision using a detailed case study. Key financial, operational and business data of the firm are collected, compiled and analysed. The solution methodology uses a combination of qualitative and quantitative analyses to choose the best among the three possible discrete location choices. For propriety reasons, some information has been disguised, and some data have been sanitized. Findings The factors that significantly influence relocation decision are proximity to high transaction customers, infrastructure and other input costs, customer service level requirements and extant regulations. Transportation has a direct impact on cost as well as service level. Most of the findings are in line with literature, but some of them differ too. Research limitations/implications The approach is focused on a single case study of a pooling container firm in the Indian context and thereby limits the ability to generalize the findings. Nevertheless, this study may serve as a significant starting point for future research. Practical implications Firms can create a rational, efficient and even-handed approach for relocation of facilities applying a mix of qualitative and quantitative models judiciously. It provides managers better understanding and insights and actions needed for single service facility relocation. Originality/value This work is perhaps the first on facility relocation in emerging economies covering actual interventions and experiences. It gives new insights to a limited literature of relocating single service facility reflecting both theoretical imperatives and practitioner requirements.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Areej Abdulrahman Alarifi ◽  
Khalid Sami Husain

PurposeThe main purpose of this study is to compare e-customer satisfaction in Saudi banks before and during coronavirus disease 2019 (COVID-19) pandemic by assessing the e-service quality dimension before and during the pandemic.Design/methodology/approachTo examine e-customer satisfaction among Saudi bank e-customers, data were collected using convenience sampling methods utilizing two questionnaires before and during COVID-19, distributed to Saudi bank e-customers. The sample size of collecting data of 588 bank e-customers was analyzed through a well-known statistical technique, multiple regression and paired sample t-test, using Statistical Product and Service Solutions (SPSS) software and Excel.FindingsIt is found that efficiency is the major determinant of e-customers’ satisfaction with banks in Saudi Arabia. The Saudi context is different from other countries. There are differences between the impact of Internet banking e-service quality on e-customer service before and during the COVID-19.Practical implicationsThis research has a crucial inference for the managerial level practically. This study has important implications for the banks to satisfy their e-customers by increasing customer service level and enhancing the interaction in the site to solve the e-customers problem immediately by creating an effective support team to encourage the effect of responsiveness. In particular, website managers should review their website framework and create an easily organized site for e-customers.Originality/valueThe research improves past studies' methodology by testing the impacts between the constructs before and during COVID-19. This research is a significant addition to the current literature collection.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingqin Su ◽  
Shuai Zhang ◽  
Huanhuan Ma

PurposeThe purpose of the study is to explore how technological capability and exogenous pressure interactively influence business model (BM) dynamics over time in new technology-based ventures.Design/methodology/approachThe study adopts a longitudinal case study of the BM innovations of a Chinese financial technology venture. The structural approach and temporal bracket are used to analyze and theorize the data.FindingsThe findings indicate that distinct contextual changes impel a firm to refine or abandon existing BMs over time. In different stages, the antecedents interactively influence BM dynamics with three successive patterns, namely pressure dominance, parallel influence and hybrid influence. While both antecedents trigger changes during the initiation and implementation of new BMs, they also serve as the filter and the enabler, respectively, during the ideation and integration of BMs.Research limitations/implicationsThe study inductively develops three propositions regarding the relationship between BM dynamics and its antecedents, which is based on the data collected from one single firm. Future research should test the propositions in other domains and take more cross-level antecedents into consideration.Originality/valueThe study contributes to the nascent research stream of BM dynamics by offering in-depth insights into the interaction of internal and external antecedents and by linking the differentiated roles of antecedents to the BM innovation process. The research offers some practical implications for new technology-based ventures seeking to develop BMs in a fast-changing environment.


2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.


2020 ◽  
Vol 214 ◽  
pp. 03052
Author(s):  
Bin Wang ◽  
HeHua Li

To achieve sustainable development, logistics enterprises need not only to reduce costs, but also to save energy for environmental protection and improve customer service level. The improvement of reverse logistics management level of waste tires is of great significance to improve the efficiency of the automobile industry. In this paper, multi-objective programming is adopted to establish the waste tire recycling network model. The decision variable is whether the network nodes are set or not, the traffic flow between nodes. Constraints include meeting customer demand, balance of flow in and out of logistics nodes, etc. The model is solved by ε- constraint. Taking the actual data of the enterprise as an example, the operation results show that the operation cost, carbon emission and customer transportation distance can get an consistence within a certain range. Waste tire logistics enterprises can realize the simultaneous improvement of profit, environmental protection and customer service level.


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