Space allocation and stock replenishment synchronization in a distribution center

Distribution centers are one of the most important components in a supply chain. In the context of a new global economy in which filling orders within a 24-h period is the industry standard, product locating, replenishing, and picking activities must be managed efficiently. This article proposes and analyzes different product location and replenishment strategies for a distribution center that uses a pick-to-belt system for order fulfillment. Based on real data, the study shows that selecting the right location and replenishment methods can significantly reduce the number of stockouts in the picking area (up to 77%), thus improving the distribution center's productivity.