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

Quick Response Practices at the Warehouse of Ankor

In the warehouse of Ankor, a wholesaler of tools and garden equipment, various problems concerning the storage and retrieval of products arise. For example, heavy products have to be retrieved prior to light products to prevent damage. Furthermore, the layout of the warehouse differs from the layout generally assumed in literature. The goal of this research was to determine storage locations for the products and a routing method to obtain sequences in which products are to be retrieved from their locations. It is shown that despite deviations from the "normal" case, similar savings in route length can be obtained by adapting existing solution techniques. Total labor savings are far less than expected on basis of assumptions made in literature. With a minimum of adaptations to the current situation the average route length can be decreased by 30 %. There is no need for complex techniques.storage;warehousing;optimization;case study;routing

A compact arc-based ILP formulation for the pickup and delivery problem with divisible pickups and deliveries

We consider the capacitated single vehicle one-to-one pickup and delivery problem with divisible pickups and deliveries (PDPDPD). In this problem, we do not make the standard assumption of one-to-one pickup and delivery problems that each location has only one transportation request. Instead we assume there are multiple requests per location that may be performed individually. This may result in multiple visits to a location. We provide a new compact arc-based ILP formulation for the PDPDPD by deriving time-consistency constraints that identify the order in which selected outgoing arcs from a node are actually traversed. The formulation can also easily be applied to the one-to-one PDP by restricting the number of times that a node can be visited. Numerical results on standard one-to-one PDP test instances from the literature show that our compact formulation is almost competitive with tailor-made solution methods for the one-to-one PDP. Moreover, we observe that significant cost savings up to 15% on average may be obtained by allowing divisible pickups and deliveries in one-to-one PDPs. It turns out that divisible pickups and deliveries are not only beneficial when the vehicle capacity is small, but also when this capacity is unrestrictive

Controlling and enabling practices to manage supply in online service triads

Purpose: The purpose of this paper is to understand which controlling and enabling practices are used, how the numerous supplying partners are managed and how positive network effects are generated in online service triads (multi-sided platform – supplying partners – consumers). Design/methodology/approach: A single representative in-depth case study was conducted to refine theory on managing service triads. The main data source consists of field notes collected by one author, who held a temporary position within the organization. Additional data were collected from observations, internal documents, informal talks and 20 interviews. Findings: The authors found controlling and enabling organizational practices in four main categories on two levels as follows: managing network composition (system level), managing order fulfillment and returns (operations level), category management (both levels) and capability enhancement (both levels). Research limitations/implications: The authors show that both controlling and enabling practices are present in online service triads. This enables platform owners and supplying partners to share responsibilities for creating positive network effects, i.e. to increase scale, which increases value, which again attracts more suppliers and consumers, which creates more value, etc. Practical implications: The authors present a range of and controlling and enabling practices that describe how multi-sided platforms can manage numerous supplying partners in an online context. Originality/value: This study is the first to show that contractual and relational governance is insufficient in service triads in online settings with numerous supplying partners. Further, the authors provide empirical evidence that supply networks continuously adapt over time

Layout and Routing Methods for Warehouses

Layout and Routing Methods for Warehouses discusses aspects of order picking in warehouses. Order picking is the process by which products are retrieved from storage to meet customer demand. Various new routing methods are introduced to determine efficient sequences in which products have to be retrieved from storage. Furthermore, a new method is given to determine a layout for the order picking area. The objective is to minimize the average distance traveled per route by the order pickers

Cross docking for libraries with a depot

Library organizations in the Netherlands show an increasing interest to employ depots for low-cost storage and demand fulfillment of item requests. Typically, all libraries in an organization have a shared catalog, and, on local unavailability, requests can be shipped from elsewhere in the organization. The depot can be used to consolidate shipment requests by making tours along all libraries, delivering requested items, but also picking up items that have to be stored at the depot, or that have to be shipped from one library to another. Cross docking and delayed shipments are two preferred methods for fulfilling requests that cannot be directly met using on-hand stock at the depot. In this paper, we compare these two methods from an inventory control perspective. We model the library system as a Markov Decision process. For one- and two-location systems, we derive analytical results for the average-cost optimal policy, showing that the decision to store items from the location at the depot satisfies a threshold structure depending on the number of rented items. For larger instances, an effective heuristic is proposed exploiting this threshold structure. In numerical experiments, important managerial insights are obtained by comparing cross docking and delayed shipments in different situations. Cross docking is shown to add most value in systems with low total stock, however, delayed shipments may achieve similar costs as cross docking when stock is high or when tours frequently visit all locations. Furthermore, effective decisions can be based on simple model formulations with memoryless rental time distributions

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

Quick Response Practices at the Warehouse of Ankor

In the warehouse of Ankor, a wholesaler of tools and garden equipment, various problems concerning the storage and retrieval of products arise. For example, heavy products have to be retrieved prior to light products to prevent damage. Furthermore, the layout of the warehouse differs from the layout generally assumed in literature. The goal of this research was to determine storage locations for the products and a routing method to obtain sequences in which products are to be retrieved from their locations. It is shown that despite deviations from the "normal" case, similar savings in route length can be obtained by adapting existing solution techniques. Total labor savings are far less than expected on basis of assumptions made in literature. With a minimum of adaptations to the current situation the average route length can be decreased by 30 %. There is no need for complex techniques

Managing warehouse efficiency and worker discomfort through enhanced storage assignment decisions

Humans are at the heart of crucial processes in warehouses. Besides the common economic goal of minimising cycle times, we therefore add in this paper the human well-being goal of minimising workers’ discomfort in the context of order picking. We propose a methodology for identifying the most suitable storage location solutions with respect to both goals. The first step in our methodology is to build data-driven empirical models for estimating cycle times and workers’ discomfort. The second step of the methodology entails the use of these empirically grounded models to formulate a bi-objective assignment problem for assigning products to storage locations. The developed methodology is subsequently tested on two actual warehouses. The results of these practical tests show that clear trade-offs exist and that optimising only for discomfort can be costly in terms of cycle time. Based on the results, we provide practical guidelines for taking storage assignment decisions that simultaneously address discomfort and travel distance considerations