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

Warehouse design and product assignment and allocation: A mathematical programming model

Warehouses can be considered one of the most important nodes in supply chains. The dynamic nature of today's markets compels organizations to an incessant reassessment in an effort to respond to continuous challenges. Therefore warehouses must be continually re-evaluated to ensure that they are consistent with both market's demands and management's strategies. In this paper we discuss a mathematical programming model aiming to support product assignment and allocation to the functional areas as well as the size of each area. In particular a large mixed-integer programming model (MILP) is presented to capture the tradeoffs among the different warehouse costs in order to achieve global optimal design satisfying throughput requirements

An integrated model for warehouse and inventory planning

We propose a tactical model which integrates the replenishment decision in inventory management, the allocation of products to warehousing systems and the assignment of products to storage locations in warehousing management. The purpose of this article is to analyse the value of integrating warehouse and inventory decisions. This is achieved by proposing two methods for solving this tactical integrated model which differ in the level of integration of the inventory and warehousing decisions. A computational analysis is performed on a real world database and using multiple scenarios differing by the warehouse capacity limits. Our observation is that the total cost of the inventory and warehousing systems can be reduced drastically by taking into account the warehouse capacity restrictions in the inventory planning decisions, in an aggregate way. Moreover additional inventory and warehouse savings can be achieved by using more sophisticated integration methods for inventory and warehousing decisions

Dynamic warehouse optimization using predictive analytics.

The forward area is a small area of a warehouse with a low picking cost. Two approaches that are investigated for selecting the SKUs of this area and the allocated space are the static and the dynamic approaches. In the case that decisions about the forward area are made periodically (e.g. yearly) and the products\u27 demand patterns are completely ignored, the FRP is static. We developed two heuristics that solve the large discrete assignment, allocation, and sizing problem simultaneously. Replenishing the same product in the same place of the forward area brings about a ``Locked layout of the fast picking area during the planning horizon. By using a dynamic slotting approach, the product pick locations within the warehouse are allowed to change and pick operations can accommodate the variability in the product demand pattern. A dynamic approach can introduce the latest fast movers to the forward area, as an opportunity arises. The primary objective of this dissertation is to formally define the dynamic FRP. One main mission of this research is to define a generic dynamic slotting problem while also demonstrating the strengths of this approach over the static model. Dynamic slotting continuously adjusts the current state of the forward area with real-time decisions in conjunction with demand predictive analytics. Applying different order data with different demand volatility, we show that the dynamic model always outperforms the static model. The benefits attained from the dynamic model over the static model are greater for more volatile warehouses

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

Optimization of a Fast-Pick Area in a Cosmetics Distribution Center

Fast-pick areas are commonly used in order picking warehouses to improve labor efficiency by concentrating picking activities within a compact area, thus minimizing the distance traveled by the pickers. One problem that must be solved when a fast-pick area is to be implemented is the so-called assignment-allocation problem. This deals with deciding which products should be assigned to the fast-pick area, and how much space should be allocated to these products. This research was motivated by the picking operation of a cosmetics distribution center where several fast-pick areas are in place. A mixed integer linear programming formulation is proposed for solving the variant of the assignment-allocation problem found in this company. Our computational experiments show that the proposed model is efficient for solving small yet realistic instances of the problem

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

Warehouse design and planning: A mathematical programming approach

The dynamic nature of today's competitive markets compels organizations to an incessant reassessment in an effort to respond to continuous challenges. Therefore, warehouses as an important link in most supply chains, must be continually re-evaluated to ensure that they are consistent with both market's demands and management's strategies. A number of warehouse decision support models have been proposed in the literature but considerable difficulties in applying these models still remain, due to the large amount of information to be processed and to the large number of possible alternatives. In this paper we discuss a mathematical programming model aiming to support some warehouse management and inventory decisions. In particular a large mixed-integer nonlinear programming model (MINLP) is presented to capture the trade-offs among the different inventory and warehouse costs in order to achieve global optimal design satisfying throughput requirements.(undefined)info:eu-repo/semantics/publishedVersio