Increasing e-commerce distribution center capacity through slotting strategy

Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, in conjunction with the Leaders for Global Operations Program at MIT, May, 2020

Bibliographic Details
Main Author: Murphy, Lorcan Andrew.
Other Authors: Stephen Graves and David Simchi-Levi.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2020
Subjects:
Online Access:https://hdl.handle.net/1721.1/126911
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author Murphy, Lorcan Andrew.
author2 Stephen Graves and David Simchi-Levi.
author_facet Stephen Graves and David Simchi-Levi.
Murphy, Lorcan Andrew.
author_sort Murphy, Lorcan Andrew.
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description Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, in conjunction with the Leaders for Global Operations Program at MIT, May, 2020
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spelling mit-1721.1/1269112020-09-04T03:41:04Z Increasing e-commerce distribution center capacity through slotting strategy Murphy, Lorcan Andrew. Stephen Graves and David Simchi-Levi. Sloan School of Management. Massachusetts Institute of Technology. Department of Civil and Environmental Engineering. Leaders for Global Operations Program. Sloan School of Management Massachusetts Institute of Technology. Department of Civil and Environmental Engineering Leaders for Global Operations Program Sloan School of Management. Civil and Environmental Engineering. Leaders for Global Operations Program. Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, in conjunction with the Leaders for Global Operations Program at MIT, May, 2020 Thesis: S.M., Massachusetts Institute of Technology, Department of Civil and Environmental Engineering, in conjunction with the Leaders for Global Operations Program at MIT, May, 2020 Cataloged from the official PDF of thesis. Includes bibliographical references (pages 57-58). To meet increasing consumer expectations around delivery times, ecommerce retailers must take orders from 'click' to 'ship' as soon as possible. For retailers with tens of thousands of stock keeping units (SKUs), item picking is often the slowest step in the distribution center (DC) fulfillment process due to time taken for pickers to move between item locations. Pick paths are dictated by item slotting, the process of assigning SKUs to locations within the pick area, and therefore slotting improvements increase pick rate. This decreases the time taken to pick orders allowing more orders to be fulfilled in a given time period and increasing fulfillment capacity. This thesis presents a method for increasing pick efficiency through improved slotting strategy. This is achieved through placement of high velocity SKUs close to the outbound path resulting in a reduction in picker distance travelled, and on mid-level shelves where they are more ergonomical to pick. The impact of slotting strategies was compared through a simulation model. Simulations with historical data indicated a potential 5.2-10.8% increase in fulfilled units over a given time period. by Lorcan Andrew Murphy. M.B.A. S.M. M.B.A. Massachusetts Institute of Technology, Sloan School of Management S.M. Massachusetts Institute of Technology, Department of Civil and Environmental Engineering 2020-09-03T15:53:07Z 2020-09-03T15:53:07Z 2020 2020 Thesis https://hdl.handle.net/1721.1/126911 1191623857 eng MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided. http://dspace.mit.edu/handle/1721.1/7582 58 pages application/pdf Massachusetts Institute of Technology
spellingShingle Sloan School of Management.
Civil and Environmental Engineering.
Leaders for Global Operations Program.
Murphy, Lorcan Andrew.
Increasing e-commerce distribution center capacity through slotting strategy
title Increasing e-commerce distribution center capacity through slotting strategy
title_full Increasing e-commerce distribution center capacity through slotting strategy
title_fullStr Increasing e-commerce distribution center capacity through slotting strategy
title_full_unstemmed Increasing e-commerce distribution center capacity through slotting strategy
title_short Increasing e-commerce distribution center capacity through slotting strategy
title_sort increasing e commerce distribution center capacity through slotting strategy
topic Sloan School of Management.
Civil and Environmental Engineering.
Leaders for Global Operations Program.
url https://hdl.handle.net/1721.1/126911
work_keys_str_mv AT murphylorcanandrew increasingecommercedistributioncentercapacitythroughslottingstrategy