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司 仓库管理系统
Internet-based
Data Envelopment Analysis
for Warehousing
Outline
The problem
The current solution
The need
A new solution
How it works
Internet deployment and results to date
Future directions
Performance Assessment
How well are you performing?
Do you have opportunities to improve?
Warehouse Operations
Receiving Function (inbound)
Unload
Inspect
Put Away
Storage
Function
Shipping Function (order fulfillment)
Load
Pack
Order Pick
Storage
Function
Storage
Function
Single Factor Productivity Metrics
Productivity =
Traditional Performance Metrics
Fill rate
Inventory turns
Lines/hour
Orders/hour
$/line
$/order
Work ok when
Requirements are not changing
Technology is not changing
Competition is not changing
It’s very hard to interpret a single factor productivity metric when the environment is subject to rapid change in products, customer requirements, technology, or competition.
Benchmarking
Relative performance level
{Best (effective) practices}
INPUTS
OUTPUTS
System-oriented Performance Measure
The Need
Resources
Services
Activities
Total Factor Productivity?
Can’t solve the pricing problem
INPUTS
OUTPUTS
ONE
PERFORMANCE INDEX
Data Envelopment Analysis
Resources
Services
Activities
System-based assessment method
Resources: capital, labor, overhead
Activities: inbound, order fulfillment
Services: lines/qty shipped, fill rate, etc
Compare to other warehouses
All other warehouses
All other warehouses in your industry
All other warehouses in your company
Your warehouse in the past
Production Function Theoryfor one input, one output
Resource/Input
Production/Output
System Efficiency Concept
Resource/Input
Production/Output
O
B
A
System efficiency of warehouse B is the ratio
OA
OB
DEA Model: Charnes, Cooper, and Rhodes
Constant Returns to Scale
Data Envelopment Analysis
Allows us to consider multiple “inputs”
Allows us to consider multiple “outputs”
Determines the reference point on the production function by constructing a hypothetical “best practices” warehouse usi
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