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

Integration of returns and decomposition of customer orders in e-commerce warehouses

In picker-to-parts warehouses, order picking is a cost- and labor-intensive operation that must be designed efficiently. It comprises the construction of order batches and the associated order picker routes, and the assignment and sequencing of those batches to multiple order pickers. The ever-increasing competitiveness among e-commerce companies has made the joint optimization of this order picking process inevitable. Inspired by the large number of product returns and the many but small-sized customer orders, we address a new integrated order picking process problem. We integrate the restocking of returned products into regular order picking routes and we allow for the decomposition of customer orders so that multiple batches may contain products from the same customer order. We thereby generalize the existing models on order picking processing. We provide Mixed Integer Programming (MIP) formulations and a tailored adaptive large neighborhood search heuristic that, amongst others, exploits these MIPs. We propose a new set of practically-sized benchmark instances, consisting of up to 5547 to be picked products and 2491 to be restocked products. On those large-scale instances, we show that integrating the restocking of returned products into regular order picker routes results in cost-savings of 10 to 15%. Allowing for the decomposition of the customer orders' products results in cost savings of up to 44% compared to not allowing this. Finally, we show that on average cost-savings of 17.4% can be obtained by using our ALNS instead of heuristics typically used in practice.Comment: Authors' preprin

Improved formulations of the joint order batching and picker routing problem

Order picking is the process of retrieving ordered products from storage locations in warehouses. In picker-to-parts order picking systems, two or more customer orders may be grouped and assigned to a single picker. Then routing decision regarding the visiting sequence of items during a picking tour must be made. (J.Won and S.Olafsson 2005) found that solving the integrated problem of batching and routing enables warehouse managers to organize order picking operations more efficiently compared with solving the two problems separately and sequentially. We therefore investigate the mathematical programming formulation of this integrated problem. We present several improved formulations for the problem based on the findings of (Valle, Beasley, and da Cunha 2017), that can significantly improve computational results. More specifically, we reconstruct the connectivity constraints and generate new cutting planes in our branch-and-cut framework. We also discuss some problem properties by studying the structure of the graphical representation, and we present two types of additional constraints. We also consider the no-reversal case of this problem. We present efficient formulations by building different auxiliary graphs. Finally, we present computational results for publicly available test problems for single-block and multiple-block warehouse configurationsComment: 37 pages, 11 figures, 7 table

Solving the order batching and sequencing problem with multiple pickers: A grouped genetic algorithm

This paper introduces a grouped genetic algorithm (GGA) to solve the order batching and sequencing problem with multiple pickers (OBSPMP) with the objective of minimizing total completion time. To the best of our knowledge, for the first time, an OBSPMP is solved by means of GGA considering picking devices with heterogeneous load capacity. For this, an encoding scheme is proposed to represent in a chromosome the orders assigned to batches, and batches assigned to picking devices. Likewise, the operators of the proposed algorithm are adapted to the specific requirements of the OBSPMP. Computational experiments show that the GGA performs much better than six order batching and sequencing heuristics, leading to function objective savings of 18.3% on average. As a conclusion, the proposed algorithm provides feasible solutions for the operations planning in warehouses and distribution centers, improving margins by reducing operating time for order pickers, and improving customer service by reducing picking service times

Lower and upper bounds for the joint batching, routing and sequencing problem

Warehouses are nowadays the scene of complex logistic problems integrating different decision layers. This paper addresses the Joint Order Batching, Picker Routing and Sequencing Problem with Deadlines (JOBPRSP-D) in rectangular warehouses. To tackle the problem an exponential linear programming formulation is proposed. It is solved with a column generation heuristic able to provide valid lower and upper bounds on the optimal value. We start by showing that the JOBPRSP-D is related to the bin packing problem rather than the scheduling problem. We take advantage of this aspect to derive a number of valid inequalities that enhance the resolution of the master problem. The proposed algorithm is evaluated on publicly available data-sets. It is able to optimally solve instances with up to 18 orders in few minutes. It is also able to prove optimality or to provide high-quality lower bounds on larger instances with 100 orders. To the best of our knowledge this is the first paper that provides optimality guarantee on large size instances for the JOBPRSP-D, thus the results can be used to assert the quality of heuristics proposed for the same problem

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