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Data driven storage location assignment problem considering order picking frequencies: A heuristic approach

Çobanoğlu, İpek, Güre, İrem, Bayram, Vedat (2021) Data driven storage location assignment problem considering order picking frequencies: A heuristic approach. Pamukkale University Journal of Engineering Sciences, 27 (4). pp. 520-531. ISSN 1300-7009. E-ISSN 2147-5881. (doi:10.5505/pajes.2021.34979) (KAR id:99649)

Abstract

Warehouses are crucial in supply chain management. They are used to distribute and store products. In this study, we optimize storage location assignment decisions in a warehouse managed by a manufacturing firm. A mathematical model is introduced to solve the nonlinear mixed integer optimization problem (NLMIP), i.e., the Storage Location Assignment Problem (SLAP) by using historical data from warehouse management system (WMS). Clustering and ABC analysis is conducted based on the number of times two items are picked together and the picking frequency of items, respectively and embed the results into our optimization model. Also, a greedy heuristic is developed to solve SLAP of the firm. According to obtained output, the distances between filled slots and the I/O point of the current system and our proposed solution are compared in order to see the improvement in the system, and an improvement of up to 49.99% is observed.

Item Type: Article
DOI/Identification number: 10.5505/pajes.2021.34979
Uncontrolled keywords: Storage location assignment; order picking; K-Means clustering; ABC analysis; Mixed Integer Quadratic Optimization; greedy heuristic
Subjects: H Social Sciences > HF Commerce > HF5351 Business
Divisions: Divisions > Kent Business School - Division > Department of Analytics, Operations and Systems
Funders: TED University (https://ror.org/0285rh439)
Depositing User: Vedat Bayram
Date Deposited: 23 Jan 2023 11:46 UTC
Last Modified: 04 Mar 2024 16:28 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/99649 (The current URI for this page, for reference purposes)

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