Unlocking DC throughput capacity through improved flow

Abstract

The large multi-channel apparel distribution center was built as a purely wholesale building in the 1900s. With distribution becoming more complex due to e-commerce and smaller orders for more frequent replenishment, the requirements for the distribution center have changed significantly. The manner in which work flows through the building is influenced by batch size and release logic, which have not evolved to keep up with changing demand. Under the current flow of work, associates cannot stay busy working at the same processing (packing) station. Unstaffed processing stations are used as buffers, and associates move to unstaffed processing stations when they run out of work. The current flow prevents staffing all of the processing stations which significantly reduces the long-term throughput capacity. This thesis lays out a methodology to improve flow and unlock throughput capacity by changing batch size and control logic to meet future demand. The key enablers of this thesis were: 1) The collection of data to evaluate progress at key steps in the process 2) A holistic understanding of how the system functions, as well as the implications on the longterm throughput capacity