2.3.2.4 Warehousing as Production
Consumer goods are highly standardized products. Picking in the warehouse can be treated as the retailer’s production equivalent as store orders are produced in the warehouse. Planning methods are similar to the added value processes of producing industries (e.g., lot sizing and scheduling) and depend on the product characteristics. Nevertheless, the warehouse operations have direct impact on the retail store operations (e.g., if incoming goods need to be re-picked or restored in the store’s backroom).
These examples of retail specifics will be reflected in the planning activities. In the following we identify and describe the retail-specific DSCP problems. We distinguish these along the time horizon and the flow of goods, by developing a consumer-backed DSCP framework. The interrelation of planning aspects requires a holistic approach.Horizontally and vertically coherent modules need to communi-cate to ensure proper material flow and plan alignments. The framework integrates retail specifics, supplier and consumer interaction, as well as hierarchical and sequential decision aspects.