Mathematical Problems in Engineering
Volume 2012 (2012), Article ID 847591, 9 pages
http://dx.doi.org/10.1155/2012/847591
Research Article

Entry-Item-Quantity-ABC Analysis-Based Multitype Cigarette Fast Sorting System

Ying Zhao,1 Yan Shi,2 and Hamid Reza Karimi3

1School of Transportation and Logistics Engineering, Shandong Jiaotong University, Shandong, Jinan 250023, China
2School of Industrial Engineering, Tokai University, Kumamoto 862-8652, Japan
3Department of Engineering, Faculty of Technology and Science, University of Agder, 4898 Grimstad, Norway

Received 27 August 2012; Accepted 28 October 2012

Academic Editor: Ebrahim Momoniat

Copyright © 2012 Ying Zhao et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Numerous items, small order, and frequent delivery are the characteristics of many distribution centers. Such characteristics generally increase the operating costs of the distribution center. To remedy this problem, this study employs the Entry-Item-Quantity (EIQ) method to identify the characteristic of the cigarette distribution center and further analyzes the importance degree of customers and the frequently ordered products by means of EQ/EN/IQ-B/IK statistic charts. Based on these analyses as well as the total replenishment cost optimization model, multipicking strategies and combined multitype picking equipment allocation is then formulated accordingly. With such design scheme, the cigarette picking costs of the distribution center are expected to reduce. Finally, the specific number of equipment is figured out in order to meet the capability demand of the case cigarette distribution center.