Designing a lean storage allocation policy for non-uniform unit loads in a forward-reserve model

Purpose: The contemporary e-tailing marketplace insists that distribution centers are playing the roles of both wholesalers and retailers which require different storage-handling load sizes due to different product variants. To fulfill piecewise retail orders, a separate small size-fast pick area is design called “forward buffer” wherein pallets are allocated from reserve area. Due to non-uniform pallets, the static allocation policy diminishes forward space utilization and also, more than practically required buffer size has been identified as wastage. Thus, dynamic storage allocation policy is required to design for reducing storage wastage and improving throughput considering non-uniform unit load sizes. The purpose of this paper is to model such policy and develop an e-decision support system assisting enterprise practitioners with real-time decision making. Design/methodology/approach: The research method is developed as a dynamic storage allocation policy and mathematical modeled as knapsack-based heuristics. The execution procedure of policy is explained as an example and tested with case-specific data. The developed model is implemented as a web-based support system and tested with rational data instances, as well as overcoming prejudices against single case findings. Findings: The provided model considers variable size storage-handling unit loads and recommends number of pallets allocations in forward area reducing storage wastes. The algorithm searches and suggests the “just-right” amount of allocations for each product balancing existing forward capacity. It also helps to determine “lean buffer” size for forward area ensuring desired throughput. Sensitivity and buffer performance analysis is carried out for Poisson distributed data sets followed by research synthesis. Practical implications: Warehouse practitioners can use this model ensuring a desired throughput level with least forward storage wastages. The model driven e-decision support system (DSS) helps for effective real-time decision making under complicated business scenarios wherein products are having different physical dimensions. It assists the researchers who would like to explore the emerging field of “lean” adoption in enterprise information and retail-distribution management. Originality/value: The paper provides an inventive approach endorsing lean thinking in storage allocation policy design for a forward-reserve model. Also, the developed methodology incorporating features of e-DSS along with quantitative modeling is an inimitable research contribution justifying rational data support.