APPLICATION OF THE ANALYTIC HIERARCHY PROCESS IN THE SELECTION OF STORAGE RACK SYSTEMS FOR E-COMMERCE CLOTHING INDUSTRY

Year 2018, Volume: 5 Issue: 4, 255 - 266, 30.12.2018

Sebnem Indap

https://doi.org/10.17261/Pressacademia.2018.986

Abstract

Purpose- In this study, it was aimed to select the appropriate storage rack system for e-commerce clothing industry, by comparing storage rack

systems in terms of criteria such as cost, volume utilization, height utilization, ease of order picking and stock cycle speed.

Methodology- First of all a literature review is carried out. Secondly, the comparison of the storage systems is made and the ones that are

suitable for the e-commerce sector and that will be included in the AHP (Analytical Hierarchy Process) analysis are determined. Finally, a semistructured

interview is done with 3 e-commerce sector representatives and the AHP method is used to analyze the data.

Findings- Considering the usage areas, features, advantages and disadvantages; it was decided to include Back-to-Back and Narrow Aisle and

Automatic Storage Systems in the AHP analysis. Back-to-Back Rack System was found to be first with 36.2% ratio. Automatic Storage Systems are

in the second place due to their cost disadvantage although they are advantageous for all other criteria. Narrow Aisle Rack System is in the third

place, although it more cost-effective than the Automatic Storage Systems, it falls behind it in terms of other criteria, especially the inventory

cycle speed criterion.

Conclusion- As a result of the study using AHP multi-criteria decision-making method, Back-to-Back Rack System was evaluated as the most

suitable storage rack system for e-commerce clothing sector.

Keywords

AHP method, multi criteria decision-making, warehouse design, storage rack system selection

References

• Aktepe, A., Ersöz, S. (2014). Application of AHP-VIKOR and MOORA methods in warehouse site selection problem. Endüstri Mühendisliği Dergisi(25), 2-15.
• Baray, S., Çakmak, E. (2014). Design methodology for a multiple-level warehouse layout based on particle swarm optimization algorithm. İstanbul Üniversitesi İşletme Fakültesi İşletme İktisadı Enstitüsü Yönetim Dergisi(77), 13-38.
• Büyüközkan, G., Göçer, F. (2016). Logistic firm selection for medical waste management. 5th. National Logistics And Supply Chain Congress (pp. 837-844). Mersin: Toros Üniversitesi.
• Cho, J., Ozment, J., Sink, H. (2008). Logistics capability, logistics outsourcing and firm performance in an e-commerce market. International Journal Of Physical Distribution And Logistics Management, 336-359.
• Dağdeviren, M. (2008). Decision making in equipment selection: an integrated approach with AHP and PROMETHEE. Journal of Intelligent Manufacturing(19), 397–406.
• Dağdeviren, M., Akay, D., Kurt, M. (2004). Analytical hierarchy process for job evaluation and application. Journal of Gazi University Engineering And Architecture Faculty(19), 131-138.
• Eren, T., Gür, S. (2017). Selection of 3PL company for online shopping sites with AHP and TOPSIS method. Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi(2), 819-834.
• Falsini, D., Schiraldi, M., Fondi, F. (2012). A logistics provider evaluation and selection methodology based on AHP, DEA and linear programming integration. International Journal of Production Research(17), 4822-4829.
• Geismar, H., Dawande, M., Murthi, B., Sriskandarajah, C. (2015). Maximizing revenue through two-dimensional shelf-space allocation. Production and Operations Management Society(24), 1148–1163.
• Günay, S., Özyörük, B. (2016). Green supplier selection based on AHP & VIKOR methods and an application. 5th. National Logistics And Supply Chain Congress (pp. 348-357). Mersin: Toros Üniversitesi.
• Hompel, M., Schmidt, T. (2005). Warehouse management - automation and organisation of warehouse and order picking systems. Dortmund: Springer.
• Hsieh, L., Tsai, L. (2006). The optimum design of a warehouse system on order picking efficiency. International Journal of Advanced Manufacturing Technology(28), 626–637.
• Hübner, A., Schaal, K. (2017). Effect of replenishment and backroom on retail shelf-space planning. Springer Busineness Research(10), 123-156.
• Hwang, H., Cho, G. (2006). A performance evaluation model for order picking warehouse design. Computers & Industrial Engineering(51), 335–342.
• Kahraman, C., Cebeci, U., Ulukan, Z. (2003). Multi criteria supplier selection using fuzzy AHP. Logistics Information Management(16), 382-394.
• Kantarcı, Ö., Özalp, M., Sezginsoy, C., Özaşkınlı, O., Cavlak, C. (2017). The new growth engine in the digital world: e-commerce. İstanbul: TÜSİAD.
• Karakış, İ. (2014). Hierarchical warehouse design methodology and an analytical model for conventional/automatic warehouse decision problem for distribution centers. İstanbul: İstanbul Teknik Üniversitesi - Industrial Engineering Department - PhD. Thesis.
• Korpela, J., Lehmusvaara, A., Nisonen, J. (2007). Warehouse operator selection by combining AHP and DEA methodologies. International Journal of Production Economics(108), 135-142.
• Koska, A., Göksu, N., Sünbül, M. (2016). Barriers of green supply chain management implementation: an application in Kipaş paper factory. 5th. National Logistics And Supply Chain Congress (pp. 367-379). Mersin: Toros Üniversitesi.
• Leung, K., Choy, K., Siu, P., Ho, G., Lam, H., Lee, C. (2018). A B2C e-commerce intelligent system for re-engineering the order fulfilment process. Expert Systems With Applications, 386-401.
• Matson, J., White, J. (1981). Storage system optimization. Atlanta: Georgia Instititute of Technology, Production and Distribution Research Center.
• Meerkamp, F. (2018). Reinventing the supply chain with intelligent technology. Supply Chain Management Review.
• Morganti, E., Seidel, S., Blanquart, C., Dablanc, L., Lenz, B. (2014). The impact of e-commerce on final deliveries: alternative parcel delvery services in France and Germany. Transportation Research Procedia, 178-190.
• Nişel, S., Coşkun, E., Timor, M. (2005). Evaluating site selection factors for a main cargo distribution center using analytic hierarchy process (AHP). 3rd. International Logistics And Supply Chain Congress (pp. 592-599). İstanbul: Galatasaray University.
• Ofluoğlu, A., Baki, B. (2016). Analysis of order picking process: application of a company in food distribution sector. 5th. National Logistics And Supply Chain Congress (pp. 504-511). Mersin: Toros Üniversitesi.
• Ömürbek, N., Tunca, M. (2013). A case study on group decision making stage in analytic hierarchy process and analytic network process methods. Suleyman Demirel University The Journal of Faculty of Economics and Administrative Sciences(18), 47-70.
• Özcan, T. (2010). Retail shelf space management: literature review and the design of a decision support tool. Yönetim(67), 84-103.
• Özçakar, N., Görener, A., Arıkan, V. (2012). Optimization of order picking operations with genetic algorithms in warehouse systems. Yönetim: İstanbul Üniversitesi İşletme İktisadı Enstitüsü Dergisi(71), 118-144.
• Rosinska, M., Chillara, N. (2017). Layout design planning of a logistics center: a study on space utilization after merger of two warehouses. Göteborg: Chalmers University of Technology, Department of Technology Management and Economics, Division of Supply and Operations Management, Master of Science Thesis.
• Tansan, B., Gökbulut, A., Targotay, Ç., Eren, T. (2016). Industry 4.0 in Turkey as an imperative for global competitiveness - an emerging market perspective. İstanbul: TÜSİAD.
• Tanyaş, M. (2017). Logistics and supply chain management PhD. Programme – Warehouse Management Lecture Notes. Istanbul: Maltepe University.
• Tsaia, C., Huang, S. (2015). A data mining approach to optimise shelf space allocation in consideration of customer purchase and moving behaviours. International Journal of Production Research(53), 850-866.
• Tunç, S., Kutlu, B., Zincidi, A., Atmaca, E. (2008). Improvement of order picking process in warehouse system. Gazi Üniversitesi Mühendislik Mimarlık Fakültesi Dergisi(23), 357-364.
• Tümenbatur, A. (2016). Packaging selection model for fresh vegetable and fruit products: Cherry application. All Product, Container and Packaging Standards Symposium - Vegetables & Fruits (pp. 31-37). İstanbul: TÜRKAS.
• URL1. (2015, 08 18). Household information technology usage survey, 2015. Retrieved from TÜİK: http://www.tuik.gov.tr/PreHaberBultenleri.do?id=18660
• URL2. (2017, 08 18). Household information technology usage survey, 2017. Retrieved from TÜİK: http://www.tuik.gov.tr/PreHaber Bultenleri.do?id=24862
• Uztürk, D., Büyüközkan, G. (2016). A QFD approach for sustainable warehouse design. XIV. International Logistics and Supply Chain Congress (pp. 257-265). İzmir: Ege University.
• Wang, X., Zhan, L., Ruan, J., Zhang, J. (2014). How to choose "Last-Mile" delivery modes for e-fulfillment. Mathematical Problems In Engineering, 1-11.
• Yang, T., Kuo, C. (2003). A hierarchical AHP/DEA methodology for the facilities layout design problem. European Journal of Operational Research(147), 128-136.
• Yıldırım, O., Erol, S. (2016). An application for the determination of supply center site selection criteria. 5th. National Logistics And Supply Chain Congress (pp. 845-854). Mersin: Toros Üniversitesi.