Robust Material Handling System Design Based on The Risk Versus Cost Tradeoff

The design and planning of major material handling systems belongs to the class of systems design problems under uncertainty. The overall structure of the system is decided during the current design stage, while the values of the future conditions and the future planning decisions are not known with certainty. Typically the future uncertainty is modeled through a number of scenarios and each scenario has an individual timediscounted total system cost. The overall performance of the material handling system is characterized by the distribution of these scenario costs. The central tendency of the cost distribution is almost always computed as the expected value of the distribution. Several alternatives can be used for the dispersion of the distribution such as the standard deviation and variance. In this study the standard deviation of the cost distribution is used as the measure of the risk of the system. The goal is to identify all configurations of the material handling system that are Pareto optimal with respect to the trade off between the expected value and the standard deviation of the costs; such Pareto-optimal configurations are also called efficient. The final selection of the material handling system for implementation can then be made based on the Pareto graph and other considerations such as the risk preferences of the system owner

Robotized Warehouse Systems: Developments and Research Opportunities

Robotized handling systems are increasingly applied in distribution centers. They require little space, provide flexibility in managing varying demand requirements, and are able to work 24/7. This makes them particularly fit for e-commerce operations. This paper reviews new categories of robotized handling systems, such as the shuttle-based storage and retrieval systems, shuttle-based compact storage systems, and robotic mobile fulfillment systems. For each system, we categorize the literature in three groups: system analysis, design optimization, and operations planning and control. Our focus is to identify the research issue and OR modeling methodology adopted to analyze the problem. We find that many new robotic systems and applications have hardly been studied in academic literature, despite their increasing use in practice. Due to unique system features (such as autonomous control, networked and dynamic operation), new models and methods are needed to address the design and operational control challenges for such systems, in particular, for the integration of subsystems. Integrated robotized warehouse systems will form the next category of warehouses. All vital warehouse design, planning and control logic such as methods to design layout, storage and order picking system selection, storage slotting, order batching, picker routing, and picker to order assignment will have to be revisited for new robotized warehouses

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

Progress in Material Handling Research: 2010

Table of Content

Modeling and Analysis of Automated Storage and Retrievals System with Multiple in-the-aisle Pick Positions

This dissertation focuses on developing analytical models for automated storage and retrieval system with multiple in-the-aisle pick positions (MIAPP-AS/RS). Specifically, our first contribution develops an expected travel time model for different pick positions and different physical configurations for a random storage policy. This contribution has been accepted for publication in IIE Transactions (Ramtin & Pazour, 2014) and was the featured article in the IE Magazine (Askin & Nussbaum, 2014). The second contribution addresses an important design question associated with MIAPP-AS/RS, which is the assignment of items to pick positions in an MIAPP-AS/RS. This contribution has been accepted for publication in IIE Transactions (Ramtin & Pazour, 2015). Finally, the third contribution is to develop travel time models and to determine the optimal SKUs to storage locations assignment under different storage assignment polies such as dedicated and class-based storage policies for MIAPP-AS/RS. An MIAPP-AS/RS is a case-level order-fulfillment technology that enables order picking via multiple pick positions (outputs) located in the aisle. We develop expected travel time models for different operating policies and different physical configurations. These models can be used to analyze MIAPP-AS/RS throughput performance during peak and non-peak hours. Moreover, closed-form approximations are derived for the case of an infinite number of pick positions, which enable us to derive the optimal shape configuration that minimizes expected travel times. We compare our expected travel time models with a simulation model of a discrete rack, and the results validate that our models provide good estimates. Finally, we conduct a numerical experiment to illustrate the trade-offs between performance of operating policies and design configurations. We find that MIAPP-AS/RS with a dual picking floor and input point is a robust configuration because a single command operating policy has comparable throughput performance to a dual command operating policy. As a second contribution, we study the impact of selecting different pick position assignments on system throughput, as well as system design trade-offs that occur when MIAPP-AS/RS is running under different operating policies and different demand profiles. We study the impact of product to pick position assignments on the expected throughput for different operating policies, demand profiles, and shape factors. We develop efficient algorithms of complexity O(nlog(n)) that provide the assignment that minimizes the expected travel time. Also, for different operating policies, shape configurations, and demand curves, we explore the structure of the optimal assignment of products to pick positions and quantify the difference between using a simple, practical assignment policy versus the optimal assignment. Finally, we derive closed-form analytical travel time models by approximating the optimal assignment\u27s expected travel time using continuous demand curves and assuming an infinite number of pick positions in the aisle. We illustrate that these continuous models work well in estimating the travel time of a discrete rack and use them to find optimal design configurations. As the third and final contribution, we study the impact of dedicated and class-based storage policy on the performance of MIAPP-AS/RS. We develop mathematical optimization models to minimize the travel time of the crane by changing the assignment of the SKUs to pick positions and storage locations simultaneously. We develop a more tractable solution approach by applying a Benders decomposition approach, as well as an accelerated procedure for the Benders algorithm. We observe high degeneracy for the optimal solution when we use chebyshev metric to calculate the distances. As the result of this degeneracy, we realize that the assignment of SKUs to pick positions does not impact the optimal solution. We also develop closed-form travel time models for MIAPP-AS/RS under a class-based storage policy

Parameter Tolerance in Capacity Planning Models

In capacity planning for a service operation, analytical models based on queueing theory allow the user to quickly estimate the capacity required and to easily experiment with different system designs or configurations, for a given set of input parameters. An input parameter of the model could be inaccurate or may not be known beyond a good guess. In order to determine if the analysis results (and hence the system design) are robust to parameter estimation errors, sensitivity analysis can be performed. We study an alternative approach that involves specifying a tolerance range of a system performance measure and calculating a feasible region of the uncertain parameters for which the performance measure will be within the tolerance range. We illustrate this approach using basic exponential queueing models as well as a model of an order fulfillment operation in a distribution center

Integrated Models and Tools for Design and Management of Global Supply Chain

In modern and global supply chain, the increasing trend toward product variety, level of service, short delivery delay and response time to consumers, highlight the importance to set and configure smooth and efficient logistic processes and operations. In order to comply such purposes the supply chain management (SCM) theory entails a wide set of models, algorithms, procedure, tools and best practices for the design, the management and control of articulated supply chain networks and logistics nodes. The purpose of this Ph.D. dissertation is going in detail on the principle aspects and concerns of supply chain network and warehousing systems, by proposing and illustrating useful methods, procedures and support-decision tools for the design and management of real instance applications, such those currently face by enterprises. In particular, after a comprehensive literature review of the principal warehousing issues and entities, the manuscript focuses on design top-down procedure for both less-than-unit-load OPS and unit-load storage systems. For both, decision-support software platforms are illustrated as useful tools to address the optimization of the warehousing performances and efficiency metrics. The development of such interfaces enables to test the effectiveness of the proposed hierarchical top-down procedure with huge real case studies, taken by industry applications. Whether the large part of the manuscript deals with micro concerns of warehousing nodes, also macro issues and aspects related to the planning, design, and management of the whole supply chain are enquired and discussed. The integration of macro criticalities, such as the design of the supply chain infrastructure and the placement of the logistic nodes, with micro concerns, such the design of warehousing nodes and the management of material handling, is addressed through the definition of integrated models and procedures, involving the overall supply chain and the whole product life cycle. A new integrated perspective should be applied in study and planning of global supply chains. Each aspect of the reality influences the others. Each product consumed by a customer tells a story, made by activities, transformations, handling, processes, traveling around the world. Each step of this story accounts costs, time, resources exploitation, labor, waste, pollution. The economical and environmental sustainability of the modern global supply chain is the challenge to face

New solution procedures for the order picker routing problem in U-shaped pick areas with a movable depot

This paper develops new solution procedures for the order picker routing problem in U-shaped order picking zones with a movable depot, which has so far only been solved using simple heuristics. The paper presents the frst exact solution approach, based on combinatorial Benders decomposition, as well as a heuristic approach based on dynamic programming that extends the idea of the venerable sweep algorithm. In a computational study, we demonstrate that the exact approach can solve small instances well, while the heuristic dynamic programming approach is fast and exhibits an average optimality gap close to zero in all test instances. Moreover, we investigate the infuence of various storage assignment policies from the literature and compare them to a newly derived policy that is shown to be advantageous under certain circumstances. Secondly, we investigate the efects of having a movable depot compared to a fxed one and the infuence of the efort to move the depot

Evaluation of order picking systems using simulation

Sipari? toplama faaliyetleri, tedarik zinciri yönetiminde, hem üretim sistemleri açısından (montaj istasyonlarına alt parçaların tedarik edilmesi), hem de dağıtım i?lemleri açısından (mü?teri taleplerinin kar?ılanması) kritik rol oynamaktadır. Mü?teri sipari?lerindeki eğilimler, az sayıda ve yüksek miktarlarda sipari?lerin çok sayıda ve dü?ük miktarlarda sipari?lere dönü?tüğünü göstermektedir. Diğer yandan, talep edilen sipari? teslim süreleri ise her geçen gün kısalmaktadır. Bu deği?imler, i?letmelerin piyasada rekabet edebilmeleri için etkin ve esnek bir sipari? toplama sistemi benimsemelerini gerektirmektedir. Sipari? toplama süreci, tüm lojistik operasyonlarını ve mü?teriye sağlanan hizmet seviyesini büyük ölçüde etkilemektedir. Ayrıca, sipari? toplama süreci toplam depolama maliyetlerinin yarıdan fazlasını olu?turmaktadır. Bu nedenle, sipari? toplama faaliyetlerinin en etkin ?ekilde gerçekle?tirilmesi i?letmeler için büyük önem ta?ımaktadır. Bu çalı?manın amacı, sipari? toplama süresini kısaltarak, sipari? toplama etkinliğini arttırmaya yönelik deği?iklikler için sipari? toplama sistemini değerlendirmek ve geli?tirmektir. Sipari? toplama süresi, ürünlerin depolama alanlarından belirli bir mü?teri talebini kar?ılamak amacıyla toplanması süreci için geçen zamandır. Bu çalı?mada, ürünlerin depolama alanlarına atanma kararları ve rotalama metotları gibi kritik faktörlerin yanı sıra, daha önce gerçekle?tirilmi? çalı?malarda sıkça rastlanmayan depolama alanlarının ikmali problemi dikkate alınmı?tır. Bo?alan rafların yeniden doldurulması kararında, (S, s) envanter politikası uygulanmı?tır. Böylece, sipari? toplama sistemi dinamik olarak modellenmi?tir. Sipari? toplama performansını geli?tirmek için, bağlantı elemanları üreten bir firmanın ambarı temel alınarak olu?turulmu? hipotetik bir ambar üzerinde vii çalı?ılmı?tır. Ambara ait farklı benzetim modelleri olu?turulmu?, depolama ve rotalama politikalarının alternatif kombinasyonları geli?tirilerek bu benzetim modellerinde kullanılmı?tır. Elde edilen benzetim sonuçlarına göre, en küçük sipari? toplama süresini veren depolama ve rotalama politikası kombinasyonu belirlenmi?tir. Son olarak, benzetim sonuçları üzerinde bazı istatistiksel analiz metotları uygulanmı?tır Order picking activities play a critical role in supply chain management in terms of both production systems (supplying components to assembly operations) and distribution operations (meeting customer demands). Trends in customer orders reveal that orders are transformed from few-and-large orders to many-and-small ones. On the other hand, lead times of customer orders get consistently shorter. Because of these changes, companies need to adopt an effective and flexible order picking system in order to remain competitive in the market. Order picking affects both overall logistic operations and service level provided to customers. Additionally, order picking process constitutes more than half of the total warehousing cost. For these reasons, it is crucial for companies to design and perform an effective order picking process. The aim of this study is evaluating and improving of the order picking system so as to minimize the order retrieval time while increasing the picking efficiency. Order retrieval time can be defined as the time elapsed for the process of retrieving products from storage area to meet a specific customer demand. Besides the critical factors such as storage assignment decisions and routing methods, replenishment problem of the storage areas, which is rarely addressed in the previous studies, has been taken into consideration in this study. Replenishment of the empty storage locations has been conducted by using the (S, s) inventory policy. Thus, the order picking system was modeled as a dynamic system. A hypothetical distribution warehouse, based on the real life warehouse of a company specialized in production of fasteners, has been studied in order to improve the order picking performance. Alternative combinations of routing and storage policies have been developed. Moreover, different simulation models of the order picking process were constructed. In these models, proposed alternative storage and v routing policies were operated. According to the simulation results, the storage policy and routing policy combination which provides the shortest order retrieval time is determined. Finally, using simulation results, some statistical analysis methods have been implemented

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