Annotation 2

Yeming Gong and Rene De Koster of Erasmus University’s Rotterdam School of Management, evaluate the mounting issue for online retailers of organizing the logistic fulfillment processes. Their essay, “A Polling Based Dynamic Order Picking System for Online Retailers” discusses the use of the dynamic order picking system in online retail transactions. The Dynamic Picking System (DPS) can be defined as a process in which a “worker picks orders that arrive in real time during the picking operations and the picking information can dynamically change in a picking cycle.” The need for a more complex picking system is becoming more and more apparent as “Customers tend to order more frequently, in smaller quantities, thus requiring customized service.” Because online sales are becoming more prevalent “Companies tend to accept late orders while still needing to provide rapid and timely delivery within tight time windows (thus the time available for order picking is shorter). In general, lead times are under pressure.” This is true for online retailers because customers expect an immediate response to their online orders. In 2002 Ranganathan and Ganapathy expressed that “There has been a dramatic increase in the number of online retailers since the advent of the use of the Internet for commercial activity in the early 1990s.”

Gong, Yeming, and Rene De Koster. “A Polling-Based Dynamic Order Picking System For Online Retailers.” IIE Transactions 40.11 (2008): 1070-1082. Academic Search Complete. Web. 11 Nov. 2016.

The article includes a graph dictating a comparison of polling systems and non-polling systems to achieve an effective picking system for online retailers. It uses China’s two-hour delivery service as a variable in the graph. This is done to show the effectiveness of polling systems in on-time service completion. I find the graph pretty confusing because the expected waiting time is not shown in hours like it is outlined in the description. Certain labels on the graph are not explained so it is hard to gather the information the graph is trying to express.

 

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