The forgotten sons: Warehousing systems for brick-and-mortar retail chains |
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| Authors: | Nils Boysen René de Koster David Füßler |
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| Institution: | 1. Friedrich-Schiller-Universität Jena Lehrstuhl für Operations Management Carl-Zeiß-Straße 3, Jena 07743, Germany;2. Erasmus University Rotterdam, Rotterdam School of Management, P.O. Box 1738, DR Rotterdam 3000, the Netherlands;1. Rotterdam School of Management, Erasmus University, PO Box 1738, Rotterdam 3000DR, the Netherlands;2. Production and Quantitative Methods Area, Indian Institute of Management, Ahmedabad, Gujarat 380015, India;3. Decision Support & Operations Research Lab, Universität Paderborn, Paderborn, Germany;1. Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Via Lambruschini 4/B, 20156 Milano, Italy;2. Indian Institute of Management, Vastrapur, Ahmedabad 380015, India;3. Rotterdam School Of Management, Erasmus University, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands;1. Finnish Centre of Excellence in Generic Intelligent Machines Research, Aalto University, P.O. Box 15500, Aalto 00076, Finland;2. Department of Management of Technology and Innovation, Rotterdam School of Management, Erasmus University, P.O. Box 1738, Rotterdam 3000 DR, The Netherlands |
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| Abstract: | Warehouses are an inevitable component in any supply chain and a vividly investigated object of research. Much attention, however, is absorbed by warehousing systems dedicated to the special needs of online retailers in the business-to-consumer segment. Due to the ever increasing sales volumes of e-commerce this focus seems self-evident, but a much larger fraction of retail sales are still realized by traditional brick-and-mortar stores. The special needs of warehouses servicing these stores are focused in this paper. While e-commerce warehouses face low-volume-high-mix picking orders, because private households tend to order just a few pieces per order from a large assortment, distribution centers of retail chains rather have to process high-volume-low-mix orders. We elaborate the basic requirements within both business segments and identify suited warehousing systems for brick-and-mortar stores (e.g., fully-automated case picking). The setup of each identified warehousing system is described, elementary decision problems are discussed, and the existing literature is surveyed. Furthermore, we identify future research needs. |
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