Design and Control of Warehouse Order Picking: a literature review

Order picking has long been identified as the most labour-intensive and costly activity for almost every warehouse; the cost of order picking is estimated to be as much as 55% of the total warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory service and high operational cost for its warehouse, and consequently for the whole supply chain. In order to operate efficiently, the orderpicking process needs to be robustly designed and optimally controlled. This paper gives a literature overview on typical decision problems in design and control of manual order-picking processes. We focus on optimal (internal) layout design, storage assignment methods, routing methods, order batching and zoning. The research in this area has grown rapidly recently. Still, combinations of the above areas have hardly been explored. Order-picking system developments in practice lead to promising new research directions.Order picking;Logistics;Warehouse Management

Order batching in multi-server pick-and-sort warehouses.

In many warehouses, customer orders are batched to profit from a reduction in the order picking effort. This reduction has to be offset against an increase in sorting effort. This paper studies the impact of the order batching policy on average customer order throughput time, in warehouses where the picking and sorting functions are executed separately by either a single operator or multiple parallel operators. We present a throughput time estimation model based on Whitt's queuing network approach, assuming that the number of order lines per customer order follows a discrete probability distribution and that the warehouse uses a random storage strategy. We show that the model is adequate in approximating the optimal pick batch size, minimizing average customer order throughput time. Next, we use the model to explore the different factors influencing optimal batch size, the optimal allocation of workers to picking and sorting, and the impact of different order picking strategies such as sort-while-pick (SWP) versus pick-and-sort (PAS)Order batching; Order picking and sorting; Queueing; Warehousing;

Design and Control of Warehouse Order Picking: a literature review

Order picking has long been identified as the most labour-intensive and costly activity for almost every warehouse; the cost of order picking is estimated to be as much as 55% of the total warehouse operating expense. Any underperformance in order picking can lead to unsatisfactory service and high operational cost for its warehouse, and consequently for the whole supply chain. In order to operate efficiently, the orderpicking process needs to be robustly designed and optimally controlled. This paper gives a literature overview on typical decision problems in design and control of manual order-picking processes. We focus on optimal (internal) layout design, storage assignment methods, routing methods, order batching and zoning. The research in this area has grown rapidly recently. Still, combinations of the above areas have hardly been explored. Order-picking system developments in practice lead to promising new research directions

Order batching and picking in a synchronized zone order picking system

Order picking has been considered as one of the most critical operations in warehouse. In this study, we propose an analytical approximation model based on probability and queueing network theory to analyze order batching and picking area zoning on the mean order throughput time in a synchronized zone picker-to-part order picking system. The resulting model can be easily applied in the design and selection process of order picking systems. © 2011 IEEE.published_or_final_versionThe IEEE International Conference on Industrial Engineering and Engineering Management (IEEM 2011), Singapore, 6-9 December 2011. In Proceedings of the IEEE IEEM, 2011, p. 156-16

Performance Approximation and Design of Pick-and-Pass Order Picking Systems

In this paper, we discuss an approximation method based on G/G/m queuing network modeling using Whitt’s (1983) queuing network analyzer to analyze pick-and-pass order picking systems. The objective of this approximation method is to provide an instrument for obtaining rapid performance estimates (such as order lead time and station utilization) of the order picking system. The pick-and-pass system is decomposed into conveyor pieces and pick stations. Conveyor pieces have a constant processing time, whereas the service times at a pick station depend on the number of order lines in the order to be picked at the station, the storage policy at the station, and the working methods. Our approximation method appears to be sufficiently accurate for practical purposes. It can be used to rapidly evaluate the effects of the storage methods in pick stations, the number of order pickers at stations, the size of pick stations, the arrival process of customer orders, and the impact of batching and splitting orders on system performance.simulation;warehousing;order picking;queuing network;pick-and-pass

Design and optimization of an explosive storage policy in internet fulfillment warehouses

This research investigates the warehousing operations of internet retailers. The primary physical process in internet retail is fulfillment, which typically involves a large internet fulfillment warehouse (IFW) that has been built and designed exclusively for online sales and an accompanying parcel delivery network. Based on observational studies of IFW operations at a leading internet retailer, the investigations find that traditional warehousing methods are being replaced by new methods which better leverage information technology and efficiently serve the new internet retail driven supply chain economy. Traditional methods assume a warehouse moves bulk volumes to retail points where the bulks get broken down into individual items and sold. But in internet retail all the middle elements of a supply chain are combined into the IFW. Specifically, six key structural differentiations between traditional and IFW operations are identified: (i) explosive storage policy (ii) very large number of beehive storage locations (iii) bins with commingled SKUs (iv) immediate order fulfillment (v) short picking routes with single unit picks and (vi) high transaction volumes with total digital control. In combination, these have the effect of organizing the entire IFW warehouse like a forward picking area. Several models to describe and control IFW operations are developed and optimized. For IFWs the primary performance metric is order fulfillment time, the interval between order receipt and shipment, with a target of less than four hours to allow for same day shipment. Central to achieving this objective is an explosive storage policy which is defined as: An incoming bulk SKU is exploded into E storage lots such that no lot contains more than 10% of the received quantity, the lots are then stored in E locations anywhere in the warehouse without preset restrictions. The explosion ratio Ψo is introduced that measures the dispersion density, and show that in a randomized storage warehouse Ψoo\u3e0.40. Specific research objectives that are accomplished: (i) Develope a descriptive and prescriptive model for the control of IFW product flows identifying control variables and parameters and their relationship to the fulfillment time performance objective, (ii) Use a simulation analysis and baseline or greedy storage and picking algorithms to confirm that fulfillment time is a convex function of E and sensitive to Ǩ, the pick list size. For an experimental problem the fulfillment time decrease by 7% and 16% for explosion ratios ranging between Ψo=0.1 and 0.8, confirming the benefits of an explosive strategy, (iii) Develope the Bin Weighted Order Fillability (BWOF) heuristic, a fast order picking algorithm which estimates the number of pending orders than can be filled from a specific bin location. For small problems (120 orders) the BWOF performes well against an optimal assignment. For 45 test problems the BWOF matches the optimal in 28 cases and within 10% in five cases. For the large simulation experimental problems the BWOF heuristic further reduces fulfillment time by 18% for Ǩ =13, 27% for Ǩ =15 and 39% for Ǩ =17. The best fulfillment times are achieved at Ψo=0.5, allowing for additional benefits from faster storage times and reduced storage costs

Performance Approximation and Design of Pick-and-Pass Order Picking Systems

In this paper, we discuss an approximation method based on G/G/m queuing network modeling using Whitt’s (1983) queuing network analyzer to analyze pick-and-pass order picking systems. The objective of this approximation method is to provide an instrument for obt

Design and Control of Efficient Order Picking Processes

Binnen een logistieke keten dienen producten fysiek te worden verplaatst van de ene locatie naar de andere, van producenten naar eindgebruikers. Tijdens dit proces worden producten gewoonlijk opgeslagen op bepaalde plaatsen (magazijnen) voor een bepaalde periode. Orderverzameling – het ophalen van producten uit de opslaglocatie in het magazijn naar aanleiding van een specifieke klantorder – is het meest kritieke magazijnproces. Het is een arbeidsintensieve operatie in handmatig bestuurde systemen, en een kapitaalintensieve operatie in geautomatiseerde systemen. Een niet optimaal functionerend orderverzamelingsproces kan leiden tot onbevredigende service en hoge operationele kosten voor het magazijn, en dientengevolge voor de hele keten. Om efficiënt te kunnen functioneren dient het orderverzamelingsproces robuust te zijn ontworpen en optimaal te worden bestuurd. Dit proefschrift heeft als doel analytische modellen te ontwerpen die het ontwerp en de besturing van efficiënte orderverzamelingsprocessen ondersteunen. Verschillende methoden worden voorgesteld voor het schatten van de route langs de locaties van de te verzamelen producten, het bepalen van de optimale grenzen van zones in het magazijn die bestemd zijn voor opslag, de indeling van het magazijn, het aantal producten die tegelijk (in één ronde) worden verzameld (de batch size) en het aantal zones in het magazijn die worden ingericht voor het verzamelen en gereedmaken van orders. De methoden worden getest middels simulatie experimenten en worden inzichtelijk gemaakt met behulp van rekenexperimenten.Tho Le-Duc was born in 1974 in Quang Ninh, Vietnam. He received a Bachelor degree in Navigation Science from the Vietnam Maritime University in 1996 and a Postgraduate Diploma in Industrial Engineering from the Asian Institute of Technology Bangkok Thailand (AIT) in 1998. Thanks to the financial support from the Belgian Development and Co-operations, he obtained his master degree in Industrial Management from the Catholic University of Leuven in 2000. Since May 2001, he started as a Ph.D. candidate (AIO) at the RSM Erasmus University (formerly Rotterdam School of Management/Faculteit Bedrijfskunde), the Erasmus University Rotterdam. For about more than four years, he performed research on order picking in warehouses. As the results, Tho Le-Duc has been presented his research at several conferences in the fields of operations research, material handling, logistics and supply chain management in both Europe and North America. His research papers have been published or accepted for publication in several refereed conference proceedings, scientific books and international journals.Within a logistics chain, products need to be physically moved from one location to another, from manufacturers to end users. During this process, commonly products are buffered or stored at certain places (warehouses) for a certain period of time. Order picking - the process of retrieving products from storage (or buffer area) in response to a specific customer request - is the most critical warehouse process. It is a labour intensive operation in manual systems and a capital intensive operation in automated systems. Order picking underperformance may lead to unsatisfactory service and high operational cost for the warehouse, and consequently for the whole chain. In order to operate efficiently, the order picking process needs to be designed and optimally controlled. Thesis Design and Control of Efficient Order Picking Processes aims at providing analytical models to support the design and control of efficient order picking processes. Various methods for estimating picking tour length, determining the optimal storage zone boundaries, layout, picking batch size and number of pick zones are presented. The methods are tested by simulation experiments and illustrated by numerical examples

Designing new models and algorithms to improve order picking operations

Order picking has been identified as a crucial factor for the competitiveness of a supply chain because inadequate order picking performance causes customer dissatisfaction and high costs. This dissertation aims at designing new models and algorithms to improve order picking operations and to support managerial decisions on facing current challenges in order picking. First, we study the standard order batching problem (OBP) to optimize the batching of customer orders with the objective of minimizing the total length of order picking tours. We present a mathematical model formulation of the problem and develop a hybrid solution approach of an adaptive large neighborhood search and a tabu search method. In numerical studies, we conduct an extensive comparison of our method to all previously published OBP methods that used standard benchmark sets to investigate their performance. Our hybrid outperforms all comparison methods with respect to average solution quality and runtime. Compared to the state-of-the-art, the hybrid shows the clearest advantages on the larger instances of the existing benchmark sets, which assume a larger number of customer orders and larger capacities of the picking device. Finally, our method is able to solve newly generated large-scale instances with up to 600 customer orders and six items per customer order with reasonable runtimes and convincing scaling behavior and robustness. Next, we address a problem based on a practical case, which is inspired by a warehouse of a German manufacturer of household products. In this warehouse, heavy items are not allowed to be placed on top of light items during picking to prevent damage to the light items. Currently, the case company determines the sequence for retrieving the items from their storage locations by applying a simple S-shape strategy that neglects this precedence constraint. As a result, order pickers place the collected items next to each other in plastic boxes and sort the items respecting the precedence constraint at the end of the order picking process. To avoid this sorting, we propose a picker routing strategy that incorporates the precedence constraint by picking heavy items before light items, and we develop an exact solution method to evaluate the strategy. We assess the performance of our strategy on a dataset provided to us by the manufacturer. We compare our strategy to the strategy used in the warehouse of the case company, and to an exact picker routing approach that does not consider the given precedence constraint. The results clearly demonstrate the convincing performance of our strategy even if we compare our strategy to the exact solution method that neglects the precedence constraint. Last, we investigate a new order picking problem, in which human order pickers of the traditional picker-to-parts setup are supported by automated guided vehicles (AGVs). We introduce two mathematical model formulations of the problem, and we develop a heuristic to solve the NP-hard problem. In numerical studies, we assess the solution quality of the heuristic in comparison to optimal solutions. The results demonstrate the ability of the heuristic in finding high-quality solutions within a negligible computation time. We conduct several computational experiments to investigate the effect of different numbers of AGVs and different traveling and walking speed ratios between AGVs and order pickers on the average total tardiness. The results of our experiments indicate that by adding (or removing) AGVs or by increasing (or decreasing) the AGV speed to adapt to different workloads, a large number of customer orders can be completed until the respective due date