The Study On Slotting Optimization Of FAW-VW Logistics Center

With the continuous development of economic globalization, consumers requireto be provided products and services with higher quality. In order to meet thecustomers’ demand and occupy the market, the companies need to make a rapidresponse to the changing market. Nowadays, the competition between enterprises hasevolved into the competition between supply chains. As an important part of logistics,which is vital in supply chain management, warehouse management has already gotmore and more attention.How to improve the efficiency of warehouse management has been takenseriously in the enterprises. The Optimization of the storage location is one of theways to improve the efficiency of warehouse management. For whether the goods arein proper position will affect the warehouse operation efficiency, thus affects theenterprise profit ability.This thesis studies on the spare parts warehouse of FAW-VW logistics center anddiscusses the feasibility of slotting optimization in the warehouse. First of all, thepaper makes a brief overview of related theory on the third-party logistics enterpriseand slotting optimization. Then, through the introduction of spare parts warehouseand the analysis of the warehouse’s current situation, we consider that it is necessaryto optimize the storage location in the warehouse, because of the irrationality in thegoods allocation. After that, based on the previous analysis, we determine theminimum logistics quantity during the ex-warehouse process as the optimizationtarget, and solve the slotting optimization problem by building mathematical model.The picking frequency of spare parts and walking distance are the key indicators inthe linear programming model. Finally, we apply the mathematical model to the spareparts warehouse, and choose the LINGO software to solve the optimization problem.In order to verify the effectiveness of the slotting optimization model established inthis paper, the comparison of logistics quantity generated before and after the slottingoptimization carried out is also needed. This thesis provides a feasible method of slotting optimization to FAW-VW spareparts warehouse by combining the theory with practice, which may help to improvethe operation efficiency of the warehouse and make the enterprise response to therapidly changing demand better and faster.