Functional Order Picking Model Associated With Italika Motorcycle Parts

Functional Order Picking Model Associated With Italika Motorcycle Parts

Edna Cruz Flores (Instituto Tecnológico Superior de Naranjos, Mexico), José Alberto Hernández Aguilar (Universidad Autónoma del Estado de Morelos, Mexico) and Jaime Del Ángel García (Instituto Tecnológico Superior de Naranjos, Mexico)
DOI: 10.4018/978-1-5225-8131-4.ch019

Abstract

The purpose of the chapter is to propose a conceptual order-picking model to increase the commercialization of Italika motorcycle parts in the North of Veracruz, through the sequential analysis of activities such as distribution in the warehouse, preparation, packing of orders, and the issuance of orders to final customers. It is obtained through simulations using heuristics to compare scenarios and obtain different results after the modification of the main variables. As a result of the designed model, a calculation of three stipulated vehicles was obtained to deliver the seven spare parts systems for Italika motorcycles to each of the dispatch areas. Finally, the authors concluded, via the analysis, that the selected method is functional (in conjunction with the heuristics presented) to address the order picking when the case study was confronted, searching for the optimization of the related logistics processes.
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Introduction

One of the main objectives of small and medium enterprises is the optimization of resources that allow them to satisfy the demand of the clients. It is considered that the improvement of the processes within the Order Picking guarantees a greater performance in the supply chain of the companies. The batch picking / multi-order picking method represents a key factor for success in their policies (Otero-Caicedo, Bolívar & Rincón-García, 2016).

The market for motorcycles has emerged a remarkable growth because they are considered low-cost vehicles for the population. According to data from the National Institute of Statistics and Geography (INEGI, 2017), in the latest report of motor vehicles registered in circulation in 2016, 2 million 987 thousand 57 units were recorded. The most demanded brand in Mexico is the Italika; Forbes states that they have 70% of the motorcycle market in the country (Celis, 2017).

The director general of Italika, Alberto Tanús, in an interview with Forbes Mexico, assured that the spare parts business is the backbone of the brand, in 2015 the commercialization of the spare parts was made up of 7 thousand types of pieces. In addition, he assured that, in order to have such an extensive inventory, it is necessary to have reordering and supply systems to be able to take all the necessary spare parts to their clients at the moment they need them (Meza, 2015).

Therefore, in the present research, the design of a conceptual model on the topic of order picking for the distribution of Italika motorcycle spare parts is developed as a proposal to meet the increase of this market, which has been reflected in the North of Veracruz, Mexico. This is because companies such as “Banco Azteca” and “Compartamos Banco” have fleets of motorcycles of the aforementioned brand for the routes that their workers must carry out in their daily tasks.

In the city of Naranjos, Veracruz is located the Authorized Service Center (CSA) No. 3290, which supplies the demand for spare parts for customers in the area. However, the traditional policies that they implement for the order picking process are not solid enough to plan the expansion of the sale of spare parts to surrounding municipalities.

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