Implementing of a Business Model for an Order Picking Related to Agribusiness

Implementing of a Business Model for an Order Picking Related to Agribusiness

Jose Jesus Jimenez Peralta (Instituto Tecnológico Superior de Naranjos, Mexico), Miguel Ángel García Pérez (Instituto Tecnológico Superior de Naranjos, Mexico) and Rene Jimenez Santiago Ramirez (Instituto Tecnológico Superior de Naranjos, Mexico)
DOI: 10.4018/978-1-5225-8131-4.ch017

Abstract

This chapter is focused on the main economic activities in the city of Naranjos Veracruz, which are agriculture and livestock. It is proposed the implementation of an order picking algorithm for the optimization of the packing and distribution of agricultural products, in the Naranjos Veracruz area, by means of an advanced selection of systems, which is fundamental for the operational improvement and logistics global supply chain. In this system, the containers for individual orders travel from one area to another where they are delivered to the picking stations where a worker picks up the carousels. These batch processing stations use specific systems to direct the correct amount to each batch. During this process, the bulk components of the orders can be picked up by the workers in forklifts or another type of cargo vehicle that places an order at once or in batches. All these components meet in consolidation.
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Introduction

Currently, agriculture has become one of the main economic sources in the country according to the Secretariat Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA- Secretaria de agricultura, ganadería, Desarrollo Rural, Pesca y alimentación). Mexico ranks third in the world in organic agricultural production, which is dedicated to 169 thousand 703 producers, this is because Mexico has a territory of 198 million hectares, of which 30 are farmland, 115 of pastureland and 45.5 are forests and jungles.

The state of Veracruz occupies the first places in agricultural activities in the country according to the National Institute of Statistics, Geography and Informatics (INEGI- Instituto Nacional de Estadística y Geografía), occupies 27.43% of its territorial extension of 1, 961,239.989Ha. On the other hand, the city of Naranjos is located between the geographic coordinates of west longitude 97 ° 41 '12' 'and latitude north 21 ° 21' and with an average altitude of 60 meters above sea level, of which it occupies a 0.28% of the total area of ​​the state of Veracruz, according to statistical data offered by INEGI in 2016, agricultural activity occupies 11.54% of the territorial extension of orange trees with a total of 138,128.30 Ha. Agribusiness, currently represent an option to the growth and development of integrated mechanisms for the recognition of productive options in the agricultural sector. In this way, the market growth, demand and economic growth in Naranjos, Veracruz is strengthened.

Description of the Problem

The main problem is the packaging, accommodation and distribution of agricultural products to different points near the city of Naranjos Veracruz, which is why the use of intelligent logistics through algorithms of advanced selection of orders (Order picking), simulating the storage and accommodation, for the distribution of the product (Batch packing) in order to optimize spaces. Order picking, the process of retrieving items from your storage location to fulfill customer orders, is known as the most labor-intensive and time-consuming component of storage activities.

Development

There are four essential factors that greatly influence the performance and efficiency of order picking operations. These are: (a) warehouse design, (b) the routing and classification policy, (c) the storage strategy (d) the batch processing method.

Warehouse Design

It must respond fundamentally to certain requirements, it should be taken into account a properly sized space for the location and efficient handling of materials and merchandise in order to achieve maximum use of available volume.

Functions Inside a Warehouse
  • Reception of materials

  • Commercial requirements (packaging, labeling, etc.)

  • Product storage,

  • Properly said(physical location)

  • Selection of products to meet customer orders (pic-king)

  • Preparation of the delivery expedition

  • Loading of trucks.

Routing and Classification Policy

It is important to have routing and classification policies in conjunction with a good routing program and convincing routing methods that define how to make a routing or how to generate, create and proceed with the programming of routes that allow you to make savings, save time, improve security and optimize the service logically.

The Storage Strategy

The supply strategy for storage is where the supply channel is configured for maximum efficiency. It means inventories are used to obtain adequate savings by allowing economic production runs, buying in quantity, order processing by lots and large transportation, according to Ballou Ronald H (2004).

The Batch Processing Method

They are characterized by their flexibility for the production, in the same line, of different products of little volume but high value, they can be defined as processes of finite duration, consisting of the continuous repetition of 3 steps.

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