An algorithm for dynamic order-picking in warehouse operations

Warehousing has been traditionally viewed as a non value-adding activity but in recent years a number of new developments have meant that supply chain logistics have become critical to profitability. This paper focuses specifically on order-picking which is a key factor affecting warehouse performance. Order picking is the operation of retrieving goods from specified storage locations based on customer orders. Today's warehouses face challenges for greater responsiveness to customer orders that require more flexibility than conventional strategies can offer. Hence, dynamic order-picking strategies that allow for changes of pick-lists during a pick cycle have attracted attention recently. In this paper we introduce an interventionist routing algorithm for optimising the dynamic order-picking routes. The algorithm is tested using a set of simulations based on an industrial case example. The results indicate that under a range of conditions, the proposed interventionist routing algorithm can outperform both static and heuristic dynamic order-picking routing algorithms.This is the author accepted manuscript. The final version is available from Elsevier via http://dx.doi.org/10.1016/j.ejor.2015.06.07

Stochastic Modelling and Analysis of Warehouse Operations

This thesis has studied stochastic models and analysis of warehouse operations. After an overview of stochastic research in warehouse operations, we explore the following topics. Firstly, we search optimal batch sizes in a parallel-aisle warehouse with online order arrivals. We employ a sample path optimization and perturbation analysis algorithm to search the optimal batch size for a warehousing service provider, and a central finite difference algorithm to search the optimal batch sizes from the perspectives of customers and total systems. Secondly, we research a polling-based dynamic order picking system for online retailers. We build models to describe and analyze such systems via stochastic polling theory, find closed-form expressions for the order line waiting times, and apply polling-based picking to online retailers. We then present closed-form analytic expressions for pick rates of order picking bucket brigades systems in differe

Exact algorithms for the order picking problem

Order picking is the problem of collecting a set of products in a warehouse in a minimum amount of time. It is currently a major bottleneck in supply-chain because of its cost in time and labor force. This article presents two exact and effective algorithms for this problem. Firstly, a sparse formulation in mixed-integer programming is strengthened by preprocessing and valid inequalities. Secondly, a dynamic programming approach generalizing known algorithms for two or three cross-aisles is proposed and evaluated experimentally. Performances of these algorithms are reported and compared with the Traveling Salesman Problem (TSP) solver Concorde

High-Level Object Oriented Genetic Programming in Logistic Warehouse Optimization

Disertační práce je zaměřena na optimalizaci průběhu pracovních operací v logistických skladech a distribučních centrech. Hlavním cílem je optimalizovat procesy plánování, rozvrhování a odbavování. Jelikož jde o problém patřící do třídy složitosti NP-težký, je výpočetně velmi náročné nalézt optimální řešení. Motivací pro řešení této práce je vyplnění pomyslné mezery mezi metodami zkoumanými na vědecké a akademické půdě a metodami používanými v produkčních komerčních prostředích. Jádro optimalizačního algoritmu je založeno na základě genetického programování řízeného bezkontextovou gramatikou. Hlavním přínosem této práce je a) navrhnout nový optimalizační algoritmus, který respektuje následující optimalizační podmínky: celkový čas zpracování, využití zdrojů, a zahlcení skladových uliček, které může nastat během zpracování úkolů, b) analyzovat historická data z provozu skladu a vyvinout sadu testovacích příkladů, které mohou sloužit jako referenční výsledky pro další výzkum, a dále c) pokusit se předčit stanovené referenční výsledky dosažené kvalifikovaným a trénovaným operačním manažerem jednoho z největších skladů ve střední Evropě.This work is focused on the work-flow optimization in logistic warehouses and distribution centers. The main aim is to optimize process planning, scheduling, and dispatching. The problem is quite accented in recent years. The problem is of NP hard class of problems and where is very computationally demanding to find an optimal solution. The main motivation for solving this problem is to fill the gap between the new optimization methods developed by researchers in academic world and the methods used in business world. The core of the optimization algorithm is built on the genetic programming driven by the context-free grammar. The main contribution of the thesis is a) to propose a new optimization algorithm which respects the makespan, the utilization, and the congestions of aisles which may occur, b) to analyze historical operational data from warehouse and to develop the set of benchmarks which could serve as the reference baseline results for further research, and c) to try outperform the baseline results set by the skilled and trained operational manager of the one of the biggest warehouses in the middle Europe.

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

Class-based storage location assignment : an overview of the literature

Storage, per se, is not only an important process in a warehouse, also it has the greatest influence on the most expensive one, i.e., order picking. This study aims to give a literature overview on class-based storage location assignment (CBSLAP). In this paper, we discuss storage policies and present a classification of storage location assignment problem. Next, different configuration of classes are presented. We identify the research gaps in the literature and conclude with promising future research directions

Using simulation to analyze picker blocking in manual order picking systems

The rise of the e-commerce practice makes the warehouses be confronted with ever smaller orders that must be met ever faster, often within a 24-h period. This pressures the order picking process as the orders pickers' workload becomes higher and higher, leading subsequently to congestion in the warehouse and impacting its productivity. It is therefore crucial to determine which order batching and picking policies enhance the performance of order picking activities. This paper carries out an intensive simulation study to examine the performance of different order picking policies with batching in a wide-aisle warehouse with a low-level picker-to-parts system. The performance of the system is measured in terms of total travelled distance, number of collisions between operators (congestion) and order lead times. A full factorial design is set up and the simulation output is statistically analyzed. The results are reported and thoroughly discussed

Algorithms for On-line Order Batching in an Order-Picking Warehouse

In manual order picking systems, order pickers walk or ride through a distribution warehouse in order to collect items required by (internal or external) customers. Order batching consists of combining these – indivisible – customer orders into picking orders. With respect to order batching, two problem types can be distinguished: In off-line (static) batching all customer orders are known in advance. In on-line (dynamic) batching customer orders become available dynamically over time. This report considers an on-line order batching problem in which the total completion time of all customer orders arriving within a certain time period has to be minimized. The author shows how heuristic approaches for the off-line order batching can be modified in order to deal with the on-line situation. A competitive analysis shows that every on-line algorithm for this problem is at least 2-competitive. Moreover, this bound is tight if an optimal batching algorithm is used. The proposed algorithms are evaluated in a series of extensive numerical experiments. It is demonstrated that the choice of an appropriate batching method can lead to a substantial reduction of the completion time of a set of customer orders.Warehouse Management, Order Picking, Order Batching, On-line Optimization