IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v7y1976i1p37-46.html
   My bibliography  Save this article

Application of the Cube-Per-Order Index Rule for Stock Location in a Distribution Warehouse

Author

Listed:
  • Carl Kallina

    (American Can Company, Greenwich, Connecticut)

  • Jeffrey Lynn

    (American Can Company, Greenwich, Connecticut)

Abstract

Consider a distribution warehouse divided into reserve storage and staging areas. The warehouse stores a variety of items and receives orders for any combination of items. Goods are moved from reserve storage to staging area, where they are selected to fill the given orders. The problem is to locate items in the staging area in order to minimize the expected labor costs of order selection. Several years ago, J. L. Heskett [Heskett, J. L. 1963. Cube-per-order index---A key to warehouse stock location. Transportation and Distribution Management 3 (April) 27--31.] proposed a criterion, called the cube-per-order index (CPO) rule, for solving this problem. The criterion was justified heuristically by means of numerical examples. Recently [Kallina, C. 1976. Optimality of the cube-per-order index rule for stock location in a distribution warehouse. Working paper, American Can Company, March.], one of the authors has shown that the class of problems considered by Heskett can be formulated as a linear program, and that the CPO rule is in fact the optimal solution. In this present paper, we will (1) summarize some basic background material, (2) describe the computational steps for implementation of the CPO rule, and (3) discuss some practical conclusions gathered from experience in actually applying the rule to assist in warehouse layout.

Suggested Citation

  • Carl Kallina & Jeffrey Lynn, 1976. "Application of the Cube-Per-Order Index Rule for Stock Location in a Distribution Warehouse," Interfaces, INFORMS, vol. 7(1), pages 37-46, November.
    • Handle: RePEc:inm:orinte:v:7:y:1976:i:1:p:37-46
    DOI: 10.1287/inte.7.1.37
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.7.1.37
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.7.1.37?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu, Y. & de Koster, M.B.M., 2007. "Optimal Zone Boundaries for Two-class-based Compact 3D AS/RS," ERIM Report Series Research in Management ERS-2007-034-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    2. Bortolini, Marco & Faccio, Maurizio & Gamberi, Mauro & Manzini, Riccardo, 2015. "Diagonal cross-aisles in unit load warehouses to increase handling performance," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 838-849.
    3. de Koster, Rene & Le-Duc, Tho & Roodbergen, Kees Jan, 2007. "Design and control of warehouse order picking: A literature review," European Journal of Operational Research, Elsevier, vol. 182(2), pages 481-501, October.
    4. Yu, Y. & de Koster, M.B.M., 2006. "Optimal Storage Rack Design for a 3D Compact AS/RS with Full Turnover-Based Storage," ERIM Report Series Research in Management ERS-2006-026-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Schuur, Peter C., 2015. "The worst-case performance of the Cube per Order Index slotting strategy is infinitely bad – A technical note," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 801-804.
    6. Subir S. Rao & Gajendra K. Adil, 2017. "Analytical models for a new turnover-based hybrid storage policy in unit-load warehouses," International Journal of Production Research, Taylor & Francis Journals, vol. 55(2), pages 327-346, January.
    7. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2010. "Research on warehouse design and performance evaluation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 203(3), pages 539-549, June.
    8. de Koster, M.B.M. & Le-Duc, T. & Roodbergen, K.J., 2006. "Design and Control of Warehouse Order Picking: a literature review," ERIM Report Series Research in Management ERS-2006-005-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Gu, Jinxiang & Goetschalckx, Marc & McGinnis, Leon F., 2007. "Research on warehouse operation: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 177(1), pages 1-21, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:7:y:1976:i:1:p:37-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.