Value of Information in Improving Daily Operations in High-Density Logistics

Abstract

In this paper we investigate the value of shared information between chain actors for improving daily operations in high-density logistics processes at distribution warehouses. We first define a generic high-density logistics process at a distribution warehouse based on real-world cases. Utilizing daily shared information about inbound flow (i.e. truck-arrival time) and outbound flow (i.e. required timeframes), we then propose daily process redesign on changing process parameters and evaluate their impact on the process performance using a discrete-event simulation model of a floricultural supply chain. Additionally, the impact of different information characteristics (i.e. timeliness, accuracy and completeness) on the effectiveness of the redesign decision are studied through different scenarios. This work contributes to a better understanding of the value of information in supporting decision-making at the operational level, particularly in warehouse operations. It also helps to raise the awareness of industrial managers regarding the use of information for improving process performance as well as the importance of information characteristics.