This thesis presents a new methodology for warehouse consolidation to optimize the capacity, throughput, and overall efficiency of the warehouse. The application of the methodology allows an organization to become more competitive by reducing real estate and inventory holding costs. The algorithms use various quantitative techniques including statistical inference and integer programming, and apply them to material handling and facilities layout issues. The proposed methodology is independent of the warehouse management system in use. It was implemented by a Fortune 500 company, and resulted in significant cost, capacity and productivity improvements
