Warehousing Enhancements for E-Commerce Growth
(5 pages of text)
As an e-commerce logistics manager at the national grocery store chain TrixMag, Jim Vector was continually seeking efficiency improvements in the company’s supply chain. Following positive trends in the online grocery segment, Vector was specifically exploring the idea of upgrading parts of TrixMag’s intralogistics warehouse system for more efficient throughput. Well versed in the growing world of e-commerce, Vector knew that TrixMag’s warehouses would soon be experiencing tremendous consumer pressures. Competition was also mounting: if Vector’s segment could not reduce costs, TrixMag would not have the capabilities to maintain the low prices that consumers continually demanded. It had become clear that if Vector did not act soon, TrixMag’s market share would begin to deteriorate.
This case is suitable for undergraduate- and graduate-level courses on management science, data analytics, operations, or finance. After working through the case and assignment questions, students will be able to do the following:
- Discuss the value of optimizing a packing process to increase efficiency.
- Evaluate optimization problem formulation.
- Analyze linear integer programming.
- Discuss optimization modelling using the Microsoft Excel add-in tool Solver.
- Assess and interpret solutions from the scope of a manager.
Transportation and Warehousing
Canada; United States, Large, 2018
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