warehouse design

International Journal of Operations Research Vol. 1, No. 1, 37−46 (2004)

Optimal Storage Layout And Order Picking For Warehousing
Chiun-Ming Liu*
Department of Industrial Engineering and Systems Management, Feng Chia University, Taichung 407, Taiwan, R.O.C.

Abstract⎯In this paper, issues of storage layout and order picking operations problems for warehousing are addressed using optimization techniques. The aim of this study is to develop a dynamic planning system applied for storage layout and order-picking operations problems. The planning system considers dynamic nature of customer order demand, configuration of picking area, and interactive human-machine interface. Heuristic-based optimization technique is utilized to design the planning system. To analyze the dynamic nature of customer order demand, similarity measures among types of items are defined using the entry-order-quantity rule. Based on the characteristics of customer order demand and the configuration of picking area, a zero-one quadratic generalized assignment model is developed. A heuristic procedure is devised to find near-optimal solutions to this problem and coded using Borland C++ computer language. An industrial size application is performed to demonstrate this approach. Results indicate that the developed planning system can be promising for dealing with storage layout and order picking operations problems for warehousing.
Keywords⎯Warehousing, 0-1 quadratic generalized assignment model, stock location

1. INTRODUCTION
Logistics activities include order processing, storage layout, warehousing, inventory maintenance, transportation and material handling. These activities provide functions for bridging between producers of goods and market consumers, which are separated by time and distance. It has been estimated that logistics operations represent a large portion of a firm’s cost dollars. In many local distribution centers, items stored in the slots of racks are

References: 1. Ashayeri, J. and Gelders, L.F. (1985). Warehouse design optimization 2. Ballou, R.H. (1967). Improving the physical layout of merchandise in warehouses 3. Ballou, R.H. (1999). Business logistics management. 4th Edition, Prentice-Hall International Inc., Englewood 4. Dangelmaier, W. and Bachers, R. (1986). SIMULAP: a simulation system for material flow and warehouse 5. Davies, A.L., Gabbard, M.C., and Reinhold, E.F. (1983). 6. Dicht, E. and Beeskow, W. (1980). Optimal allocation of commodities in storehouse by means of 7. Francis, R.L., McGinis, L.F., and White, J.A. (1992). 8. Goetshalckx, M. and Ratliff, H.D. (1990). Shared storage policies based on the duration of stay. 9. Harmatuck, D.J. (1976). A comparison for two approaches to stock location 10. Heskeet, J.L. (1963). Cubic-per-order index: a key to warehouse stock location 11. Jarvis, J.M. and McDowell, E.D. (1991). Optimal product layout in an order picking warehouse 12. Joseph, B., Roll, Y., and Rosenblatt, M.J. (1980). 13. Kaku, B.K. and Thompson, G.L. (1991). An exact algorithm for the general quadratic assignment problem. 14. Kallina, C. and Lynn, J. (1976). Application of the cube-per-order index rule for stock location in a 15. Malette, A.J. and Francis, R.L. (1972). A generalized assignment approach to optimal facility layout 16. Malmborg, C.J. and Deutsch, S.T. (1988). A stock location model for dual address order picking systems. 17. Malmborg, C.J. and Krishnakumar, B. (1987). On the optimality of the cube per order index for conventional 18. Liu, C.M. (1999). Clustering techniques for stock location and order-picking in a distribution center. 19. Padberg, M.W. and Rijal, M.P. (1996). Location, scheduling, design and integer programming 20. Robert, F., David, M.G., and Brian, W.K. (1997). 21. Rosenblatt, M.J. and Roll, Y. (1984). Warehouse design with storage policy considerations 22. Rosenwein, M.B. (1994). An application of cluster analysis to the problem of locating items within a 23. Wilson, H.G. (1977). Order quantity, product popularity, and the location of stock in the warehouse