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

Material handling optimization in warehousing operations

Tableau d’honneur de la Faculté des études supérieures et postdoctorales, 2018-2019.Les activités de distribution et d’entreposage sont des piliers importants de la chaîne d’approvisionnement. Ils assurent la stabilité du flux de matières et la synchronisation de toutes les parties prenantes du réseau. Un centre de distribution (CD) agit comme un point de découplage entre l’approvisionnement, la production et les ventes. La distribution comprend un large éventail d’activités visant à assurer la satisfaction de la demande. Ces activités passent de la réception au stockage des produits finis ou semi-finis, à la préparation des commandes et à la livraison. Les opérations d’un CD sont maintenant perçues comme des facteurs critiques d’amélioration. Elles sont responsables de la satisfaction d’un marché en évolution, exigeant des délais de livraison toujours plus rapides et plus fiables, des commandes exactes et des produits hautement personnalisés. C’est pourquoi la recherche en gestion des opérations met beaucoup d’efforts sur le problème de gestion des CDs. Depuis plusieurs années, nous avons connu de fortes avancées en matière d’entreposage et de préparation de commandes. L’activité de préparation de commandes est le processus consistant à récupérer les articles à leur emplacement de stockage afin d’assembler des commandes. Ce problème a souvent été résolu comme une variante du problème du voyageur de commerce, où l’opérateur se déplace à travers les allées de l’entrepôt. Cependant, les entrepôts modernes comportent de plus en plus de familles de produits ayant des caractéristiques très particulières rendant les méthodes conventionnelles moins adéquates. Le premier volet de cette thèse par articles présente deux importants et complexes problèmes de manutention des produits lors de la préparation des commandes. Le problème de préparation des commandes a été largement étudié dans la littérature au cours des dernières décennies. Notre recherche élargit le spectre de ce problème en incluant un ensemble de caractéristiques associées aux installations physiques de la zone de prélèvement, comme les allées étroites, et aux caractéristiques des produits (poids, volume, catégorie, fragilité, etc.). Une perspective plus appliquée à la réalité des opérations est utilisée dans notre développement d’algorithmes. Les déplacements liés à la préparation des commandes sont fortement influencés par le positionnement des produits. La position des produits dans la zone de prélèvement est déterminée par une stratégie d’affectation de stockage (storage assignment strategy). Beaucoup de ces stratégies utilisent de l’information sur les ventes des produits afin de faciliter l’accès aux plus populaires. Dans l’environnement concurrentiel d’aujourd’hui, la durée de vie rentable d’un produit peut être relativement courte. Des promotions peuvent également être faites pour pousser différents produits sur le marché. Le positionnement fourni par la stratégie d’hier ne sera probablement plus optimal aujourd’hui. Il existe plusieurs études mesurant l’impact d’une bonne réaffectation de produits sur les opérations de prélèvement. Cependant, ils étudient la différence des performances avec les positionnements passés et actuels. La littérature démontre clairement que cela apporte des avantages en termes d’efficacité. Toutefois, les déplacements nécessaires pour passer d’une position à une autre peuvent constituer une activité très exigeante. Ceci constitue le second volet de cette thèse qui présente des avancées intéressantes sur le problème de repositionnement des produits dans la zone de prélèvement. Nous présentons le problème de repositionnement des produits sous une forme encore peu étudiée aux meilleurs de nos connaissances : le problème de repositionnement. Plus précisément, nous étudions la charge de travail requise pour passer d’une configuration à l’autre. Cette thèse est structuré comme suit. L’introduction présente les caractéristiques et les missions d’un système de distribution. Le chapitre 1 fournit un survol de la littérature sur les principales fonctions d’un centre de distribution et met l’accent sur la préparation des commandes et les décisions qui affectent cette opération. Le chapitre 2 est consacré à l’étude d’un problème de préparation de commandes en allées étroites avec des équipements de manutention contraignants. Dans le chapitre 3, nous étudions un problème de préparation des commandes où les caractéristiques des produits limitent fortement les routes de prélèvement. Le chapitre 4 présente une variante du problème de repositionnement (reassignment) avec une formulation originale pour le résoudre. La conclusion suit et résume les principales contributions de cette thèse. Mots clés : Préparation des commandes, entreposage, problèmes de routage, algorithmes exacts et heuristiques, réaffectation des produits, manutention.Distribution and warehousing activities are important pillars to an effective supply chain. They ensure the regulation of the operational flow and the synchronization of all actors in the network. Hence, distribution centers (DCs) act as crossover points between the supply, the production and the demand. The distribution includes a wide range of activities to ensure the integrity of the demand satisfaction. These activities range from the reception and storage of finished or semi-finished products to the preparation of orders and delivery. Distribution has been long seen as an operation with no or low added value; this has changed, and nowadays it is perceived as one of the critical areas for improvement. These activities are responsible for the satisfaction of an evolving market, requiring ever faster and more reliable delivery times, exact orders and highly customized products. This leads to an increased research interest on operations management focused on warehousing. For several years, we have witnessed strong advances in warehousing and order picking operations. The order picking activity is the process of retrieving items within the storage locations for the purpose of fulfilling orders. This problem has long been solved as a variant of the travelling salesman problem, where the order picker moves through aisles. However, modern warehouses with more and more product families may have special characteristics that make conventional methods irrelevant or inefficient. The first part of this thesis presents two practical and challenging material handling problems for the order picking within DCs. Since there are many research axes in the field of warehousing operations, we concentrated our efforts on the order picking problem and the repositioning of the products within the picking area. The order picking problem has been intensively studied in the literature. Our research widens the spectrum of this problem by including a set of characteristics associated with the physical facilities of the picking area and characteristics of the product, such as its weight, volume, category, fragility, etc. This means that a more applied perspective on the reality of operations is used in our algorithms development. The order picking workload is strongly influenced by the positioning of the products. The position of products within the picking area is determined by a storage assignment strategy. Many of these strategies use product sales information in order to facilitate access to the most popular items. In today’s competitive environment, the profitable lifetime of a product can be relatively short. The positioning provided by yesterday’s assignment is likely not the optimal one in the near future. There are several studies measuring the impact of a good reassignment of products on the picking operations. However, they study the difference between the two states of systems on the picking time. It is clear that this brings benefits. However, moving from one position to another is a very workload demanding activity. This constitutes the second part of this thesis which presents interesting advances on the repositioning of products within the picking area. We introduce the repositioning problem as an innovative way of improving performance, in what we call the reassignment problem. More specifically, we study the workload required to move from one setup to the next. This thesis is structured as follows. The introduction presents the characteristics and missions of a distribution system. Chapter 1 presents an overview of the literature on the main functions of a DC and emphasizes on order picking and decisions affecting this operation. Chapter 2 is devoted to the study of a picking problem with narrow aisles facilities and binding material handling equipment. In Chapter 3, we study the picking problem with a set of product features that strongly constrain the picking sequence. Chapter 4 presents a variant of the reassignment problem with a strong and new formulation to solve it. The conclusion follows and summarizes the main contributions of this thesis. Key words: Order-picking, warehousing, routing problems, exact and heuristic algorithms, products reassignment, material handling

Reducing blocking effects in multi-block layouts

Tour planning in multi-block layouts is a common exercise in logistics. In those systems, blocking effects result from conflicting agents competing for resources. Although clearly exceptional in real world applications, most methods of tour planning assume only one active agent, and thus do not consider blocking effects. In this paper we examine heuristic methods of tour planning in multi-block layouts with multiple agents, finding that blocking effects have a significant impact on system performance. We show that methods devised for the mentioned special case do not scale very well when applied to scenarios with multiple agents. We propose a heuristic method which is capable of reducing blocking effects. It generates tours of equal or shorter length than those produced by the other examined methods

Order picking problems under weight, fragility, and category constraints

Warehouse order picking activities are among the ones that impact the most the bottom lines of warehouses. They are known to often account for more than half of the total warehousing costs. New practices and innovations generate new challenges for managers and open new research avenues. Many practical constraints arising in real-life have often been neglected in the scientific literature. We introduce, model, and solve a rich order picking problem under weight, fragility, and category constraints, motivated by our observation of a real-life application arising in the grocery retail industry. This difficult warehousing problem combines complex picking and routing decisions under the objective of minimizing the distance traveled. We first provide a full description of the warehouse design which enables us to algebraically compute the distances between all pairs of products. We then propose two distinct mathematical models to formulate the problem. We develop five heuristic methods, including extensions of the classical largest gap, mid point, S-shape, and combined heuristics. The fifth one is an implementation of the powerful adaptive large neighborhood search algorithm specifically designed for the problem at hand. We then implement a branch-and-cut algorithm and cutting planes to solve the two formulations. The performance of the proposed solution methods is assessed on a newly generated and realistic test bed containing up to 100 pickups and seven aisles. We compare the bounds provided by the two formulations. Our in-depth analysis shows which formulation tends to perform better. Extensive computational experiments confirm the efficiency of the ALNS matheuristic and derive some important insights for managing order picking in this kind of warehouses

Reducing blocking effects in multi-block layouts

Tour planning in multi-block layouts is a common exercise in logistics. In those systems, blocking effects result from conflicting agents competing for resources. Although clearly exceptional in real world applications, most methods of tour planning assume only one active agent, and thus do not consider blocking effects. In this paper we examine heuristic methods of tour planning in multi-block layouts with multiple agents, finding that blocking effects have a significant impact on system performance. We show that methods devised for the mentioned special case do not scale very well when applied to scenarios with multiple agents. We propose a heuristic method which is capable of reducing blocking effects. It generates tours of equal or shorter length than those produced by the other examined methods

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

A simulated annealing approach to optimal storing in a multi-level warehouse

We propose a simulated annealing algorithm specifically tailored to optimise total retrieval times in a multi-level warehouse under complex pre-batched picking constraints. Experiments on real data from a picker-to-parts order picking process in the warehouse of a European manufacturer show that optimal storage assignments do not necessarily display features presumed in heuristics, such as clustering of positively correlated items or ordering of items by picking frequency. In an experiment run on more than 4000 batched orders with 1 to 150 items per batch, the storage assignment suggested by the algorithm produces a 21\% reduction in the total retrieval time with respect to a frequency-based storage assignment