The cold chain
The “cold chain” is that part of a supply chain that
must be temperature controlled. This is typical of much food, which
must be either refrigerated or frozen. It is also the case with
many medical supplies, such as vaccines.
The three main components of cost are picking, storage, handling.
Of these, the cost of picking is hardest to estimate accurately,
partly because it depends on storage and handling. Here are some
other factors that affect pick rates.
- IT support: No WMS? Legacy WMS with weak case-picking
functionality? Tier 1 WMS with high case pick requirements?
- Product characteristics: Type; dimensions
- Customer orders: Composition; timing
- Facility: Temperature; assistive technologies; MH equipment;
storage equipment; capacity (floor space; doors); placarding
requirements; crossdocking
- Business rules: FIFO; lot Integrity; work rules (eg must take
break after X minutes); layer-pick? Mixed pallets?
- HR issues: Shifts; age, height, education and/or understanding;
training requirements; incentives; safety; employee turnover;
learning; effects of new employees on productivity
- Supporting activities: Replenishments; stretch wrapping; cycle
counting
- Exceptions: Picking Errors; last minute order changes; damage;
what happens when the system goes down?
The project
Build a model that will enable someone to design a case-picking
operation in a cold-chain environment or to evaluate performance of
such an operation.
This will require answering such questions as: What factors are most
important? Exactly how do they affect productivity?
This project will likely involve lots of interaction with cold chain
DCs in the area. You will likely need to provide your own
transportation.
Data
The company data is copyrighted and proprietary. You may
use it for the purposes of this course only. (If you would like to use
it for something else, please contact me to discuss.)
- 2006 IARW Productivity and
Benchmarking Survey:
Report of an annual survey of member companies. (Note that this
reports the numbers, but does not offer a model to explain the
numbers.)
- Relevant excerpts
from the 2008 survey