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Original Articles

AN INNOVATIVE LOGISTICS MODEL FOR MULTI-CHANNEL RETAILING

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Pages 327-336 | Received 01 Dec 2008, Accepted 01 Apr 2009, Published online: 09 Feb 2010
 

ABSTRACT

The rapid growth of B2C e-commerce is driving retailers to use multiple channels to satisfy the diversity of customer needs. However, the problem of high-cost and intensive product delivery has forced retailers to face the problem of handling logistics across different channels, products, and retail locations. With these issues in mind, this study constructs an innovative logistics model, the automated multi-floor distribution center (AMDC), which solves the multiple delivery and logistics problems of retailing. This study models the multi-floor operations of products, applies a self-running three-dimensional moveable automated storage and retrieval device, adopts the picker-to-part model, employs the ant algorithm to plan the product picking paths, and constructs the AMDC for retail shops located in a metropolitan area. Finally, a simulated experimental method is used in the study to simulate the operation of the system and its handling of customer orders, and to acquire the optimal parameters for a logistics center. To investigate the critical factors for the AMDC, simulation experiments were conducted to demonstrate the model. Results show that the AMDC is useful and provides more efficient and flexible operation. This model solves the problems of long-distance delivery of products and provides convenient access for on-line customers. At the same time, it provides physical shops with greater storage space to solve the problems of inventory management, product supply, and delivery.

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