How do we measure the size of warehouse and transport vehicle?

Practically every international, national or regional freight transport model system in the world lacks explicit treatment of logistics choices (such as shipment size considerations or the use of distribution centres). This paper deals with the development of a new logistics model and its application within the national freight model systems of Norway and Sweden. This logistics model operates at the level of individual firm-to-firm (sender-to-receiver) relations and simulates the choice of shipment size and transport chain for all (several millions) these relations within the country, export and import. A logistics model with deterministic cost minimisation has been constructed for both Norway and Sweden. The full random utility logistics model has not yet been estimated on disaggregate data, but this is planned for both countries. For Sweden, more limited disaggregate models for the choice of mode and shipment size have been estimated.

Order picking has long been identified as the most labour-intensive and costly activity for almost every warehouse; the cost of order picking is estimated to be as much as55% of the total warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory service and high operational cost for the warehouse, and consequently for the whole supply chain. In order to operate efficiently, the order-picking process needs to be robustly designed and optimally controlled. This paper gives a literature overview on typical decision problems in design and control of manual order-picking processes. We focus on optimal (internal) layout design, storage assignment methods, routing methods, order batching and zoning. The research in this area has grown rapidly recently. Still, combinations of the above areas have hardly been explored. Order-picking system developments in practice lead to promising new research directions.

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