Chapter 2. Summary of EIQ Analysis
I. Purpose of EIQ Analysis
EIQ analysis is a method to analyze massive amounts of shipping data, and from the results, derive the system planning of a distribution center and the optimal selection of logistics equipment.
II. Turning Data into "Living Information"
To succeed in the analysis, a step to convert mere slip data into information useful for practical business is necessary.
- Sampling: Grasp the overall trend (pattern) with representative data of a day or a week, and separately grasp the maximum load with peak-time data.
- Unification of Units (Normalization): Unify data where pieces, cases, and pallets are mixed using conversion factors, and visualize the true workload on-site.
- Stratification: Group by characteristics (weight/temperature zone) or ABC rank to conduct highly accurate layout planning.
III. Definition of EIQ
1. E (Entry: Number of orders)
The number of "destinations" of the orders received. If the delivery destination is different, it is counted as a separate Entry to correctly grasp the delivery route and unloading load.
2. I (Item: Number of items)
The minimum unit of inventory management (SKU). Items that are physically distinguishable are counted as 1 item to derive the number of accesses to the shelves during picking.
3. Q (Quantity: Quantity)
The totality of the workload. If shapes differ greatly, group them to prevent mistakes in selecting storage equipment.
| Customer(E) \ Item(I) |
I1 |
I2 |
I3 |
I4 |
I5 |
I6 |
EN (Lines) |
EQ (Quantity) |
| E1 |
3 |
5 |
1 |
2 |
3 |
- |
5 |
14 |
| E2 |
2 |
- |
4 |
6 |
7 |
- |
4 |
19 |
IV. Analysis of Order Characteristics
Order Size
Refers to the contents of each order (quantity EQ and number of items EN). By grasping the order scale per time, it helps to determine the packing form and picking method.
Order Pattern
The distribution state of order sizes for the entire center. From this, it is determined whether single picking or batch picking is more efficient.
V. 9 Key Factors
| Category | Indicator | Content |
|---|
| Basic Elements | E / I / Q | Number of orders / Number of items / Order quantity |
| Order Receipt Characteristics | EQ / EN | Order quantity per order / Number of items per order |
| Shipping Characteristics | IQ / IK | Shipping volume per item / Shipping frequency per item |
| Overall Trend | Size / Pattern | Sense of scale of orders / Distribution state of the entire table |
VI. Integration of Analysis Methods
EIQ analysis highlights the reality of logistics by combining the following methods.
- ABC Analysis: Ranking by importance.
- Frequency Analysis: Grasping the dispersion of data and the volume zone.
- PCB Analysis: Correlation analysis by packing style (pallet, case, piece).
