Enhancing the order picking process through a new storage assignment strategy in forward-reserve area

This paper reexamines the order picking process in a warehouse facing the challenges that e-commerce brings about and which are characterised by a very large number of small sized orders and returns. Implementing effective storage assignment strategies combined with efficient batching, in this context, is very fundamental to keep the warehouse’s responsiveness and order completion times up to the standards. This paper investigates a new storage assignment strategy, initially implemented by a large shoes and footwear wholesaler, to enhance the performance of the order picking process in its warehouses. The impact of this new storage assignment strategy on the performance of the order picking process is analysed via simulation. The performance of the system, measured in terms of total picking time as well as order lead time while taking congestion into account, is compared to the cases where conventional storage assignment strategies are implemented. A full factorial design is set up and the simulation output is statistically analysed. The results of this analysis are reported and thoroughly discussed. Attending to the results, the proposed strategy presents a remarkable potential to shorten total picking travel distances and order completion time and consequently customer satisfaction.     

Enhancing performance in order picking processes by dynamic storage systems

Increasing productivity and reducing labour cost in order picking processes are two major concerns for most warehouse managers. Particularly picker-to-parts order picking methods lead to low productivity as order pickers spend much of their time travelling along the aisles. To enhance order picking process performance, an increasing number of warehouses adopt the concept of dynamic storage where only those products needed for the current order batch are dynamically stored in the pick area, thereby reducing travel time. Other products are stored in a reserve area. We analyse the stability condition for a dynamic storage system with online order arrivals and develop a mathematical model to derive the maximum throughput a DSS can achieve and the minimum number of worker hours needed to obtain this throughput, for order picking systems with a single pick station. We discuss two applications of dynamic storage in order picking systems with multiple pick stations in series. In combination with simulation modelling, we are able to demonstrate that dynamic storage can increase throughput and reduce labour cost significantly.     

Tackling the storage problem through genetic algorithms

The capability of a company to implement an automated warehouse in an optimized way might be nowadays a crucial leverage in order to gain competitive advantage to satisfy the demand.The order picking is a warehouse function that needs to deal with the retrieval of articles from their storage locations.Merging several single customer orders into one,a picking order can increase efficiency of warehouse operations.The aim of this paper is to define throughout the use of ad-hoc genetic algorithm(GA) how better a warehouse can be set up.The paper deals with order batching,which has a major effect on efficiency of warehouse operations to avoid wastes of resources in terms of processes and to control possibility of unexpected costs in advance.     

A simulation-based comparison of two goods-to-person order picking systems in an online retail setting

Design and analysis of order picking systems continues to be an active topic of interest both in academia and practice, especially in light of the significant increase in online retail sales. In this paper, we examine two types of well-known, goods-to-person order picking systems, namely, a miniload system and a Kiva system. Using a simulation model, we compare the performance of the two systems on the basis of expected throughput and expected container retrieval times to process the same set of customer orders. We also discuss some of the advantages and limitations of the two systems.     

基于NSGA-Ⅱ算法的分区拣选优化

电商背景下的客户订单呈现出多品种、小批量、高频次等特点,给仓库拣选工作带来很大的挑战。为提高拣选效率,在订单完全拆分的分批策略和组合优化的行走策略下,设计了以总服务时间最小、分区工作量平衡度最优和二次分拣效率最高的多目标分区拣选模型。由于3个目标函数之间存在矛盾,设计了NSGA-II算法对多目标优化模型进行求解。通过数值实验,与传统的不拆分订单的分区拣选系统对比,发现在订单批量环境为[1,4]时,分别使总服务时间减少了43.88%,平衡度改善了84.61%,并分析了区域个数、订单总数和订单批量环境对系统效率的影响。     

拣货方式、存储策略与路径策略协同研究

对拣货方式、路径策略与存储策略进行协同研究,设计了具有代表性的策略组合。推出了不同路径策略下,实际拣货路径长度的计算公式。通过对各种策略组合仿真结果的比较分析,确定了3种策略的相对重要性:1）分批策略对减少拣货作业总时间影响最大;2）分类存储策略比随机存储策略所需的行走路径缩短很多;3）路径策略对拣货行走的时间的减少明显小于分批拣货方式和分类存储策略带来的拣货作业时间的减少。具体决策时,应优先考虑分类存储策略和分批拣货方式,在确定其已经有效的情况下再考虑路径策略,以使拣货效率达到整体最优。     

Joint optimisation of order batching and picker routing in the online retailer’s warehouse in China

Order picking is the core of warehouse operations and considerable researches have been conducted on improving its efficiency. In this paper, we aim at the joint optimisation of order batching and picker routing based on a famous and typical online retailer of China, which mainly focuses on fast-moving consumer goods. An integer programming is formulated to minimise the total travelling distance involving with order batching and picker routing. In the stage of order batching, an effective batching procedure based on similarity coefficient which is measured by overlapping channels between orders is proposed. In the stage of picker routing, an improved ant colony optimisation algorithm with local search is proposed. Based on those simulated orders generated by actual transaction data, numerical experiments are conducted to verify the performance of the algorithm we proposed. Results show that the proposed joint optimisation algorithm has potential advantages under various order sizes and order structures, which implies that it is effective and efficient particularly in the online retailing of fast-moving consumer goods.     

Maverick picking: the impact of modifications in work schedules on manual order picking processes

Order picking, the process of retrieving items from their storage locations to fulfil customer orders, ranks among the most labour- and time-intensive processes in warehousing. Prior research in this area had a strong focus on the development of operating policies that increase the efficiency of manual order picking, for example by calculating optimal routes for the order pickers or by assigning products to storage locations. One aspect that poses a major challenge to many warehouse managers in practice has, curiously enough, remained largely unexplored by academic research: modifications in workflows (i.e. workplace deviance in a positive or negative sense) in order picking, which we define as ‘maverick picking’. The purpose of this paper is to characterise maverick picking and to study its causes, its forms of appearance and its potential impact on order picking performance. To gain insights into maverick picking, we first survey the literature to illustrate the state-of-knowledge of maverick picking. Subsequently, we report the results of a multi-case study on maverick picking and deduct a related content framework. The results of our case study support the proposition that maverick picking is highly relevant in practice and that it is a major determinant of order picking performance.     

The use of time series forecasting in zone order picking systems to predict order pickers’ workload

In order to differentiate from competitors in terms of customer service, warehouses accept late orders while providing delivery in a quick and timely way. This trend leads to a reduced time to pick an order. This paper introduces workload forecasting in a warehouse context, in particular a zone picking warehouse. Improved workforce planning can contribute to an effective and efficient order picking process. Most order picking publications treat demand as known in advance. As warehouses accept late orders, the assumption of a constant given demand is questioned in this paper. The objective of this study is to present time series forecasting models that perform well in a zone picking warehouse. A real-life case study demonstrates the value of applying time series forecasting models to forecast the daily number of order lines. The forecast of order lines, along with order pickers’ productivity, can be used by warehouse supervisors to determine the daily required number of order pickers, as well as the allocation of order pickers across warehouse zones. Time series are applied on an aggregated level, as well as on a disaggregated zone level. Both bottom-up and top-down approaches are evaluated in order to find the best-performing forecasting method.     

Differentiated service policy in smart warehouse automation

Smart warehouse automation has emerged as an effective, competitive solution for suppliers and distributors. With the increasing demand for physical storage and distribution services, suppliers and service providers are challenged to respond not only effectively, but with minimal latency. Differentiated service levels for different classes of customer orders have not yet, however, been developed for physical storage and retrieval. In this paper, in the context of smart warehouse automation services, a novel policy, called Differentiated Probabilistic Queuing (DPQ) is developed for servicing customers’ orders by Automated Guided Vehicles (AGV). Applying the DPQ policy, the average overall latency of each customer order, the mean overall processing time of this customer’s orders in the smart warehouse automation system, is characterised under Poisson customer order arrival patterns. The weighted average latency of all customer orders is optimised over the choice of (1) storage assignment and (2) DPQ policy. Due to the existence of two types of variables, Alternating Minimisation method is applied to solve this joint optimisation problem. Compared with a combination of the classical turn-over rate storage assignment method and FCFS policy, the new approach yields 19.64% lower (better) objective function value with statistical significance. Numerical analysis results also indicate, as expected, that when the smart warehouse system resources become more limited, and the price difference among different classes of customer orders increases, the improvement becomes even more significant.     

基于时间延迟的订单分批策略研究

将延迟制造思想引入到配送中心拣货作业中，提出基于时间延迟的动态时窗分批策略。该策略能消除目前拣货系统存在的等待时间和块状需求(闲忙不均)现象，保证拣货系统运行的连续性和均衡性，极大地提高了拣货系统的运行效率，并利用计算机实现该策略。     

Order picking system design: the storage assignment and travel distance estimation (SA&TDE) joint method

Of all the warehouse activities, order picking is one of the most time-consuming and expensive. In order to improve the task, several researches have pointed out the need to consider jointly the layout of the warehouse, the storage assignment strategy and the routing policy to reduce travelled distances and picking time. This paper presents the storage assignment and travel distance estimation (SA&TDE) joint method, a new approach useful to design and evaluate a manual picker-to-parts picking system, focusing on goods allocation and distances estimation. Starting from a set of picking orders received in a certain time range, this approach allows to evaluate the combinations of product codes assigned to storage locations, aisles, sections or warehouse areas and to assess the most relevant ones, for the best location and warehouse layout, with the aim of ensuring optimal picking routes, through the application of the multinomial probability distribution. A case study is developed as well, in order to clarify the concept that underlies the SA&TDE joint method, and to show the validity and the flexibility of the approach, through the calculation of the saving at different levels of detail.     

Order batching to minimize total travel time in a parallel-aisle warehouse

Although the picking of items may make up as much as 60% of all labor activities in a warehouse and may account for as much as 65% of all operating expenses, many order picking problems are still not well understood. Indeed, usually simple rules of thumb or straightforward constructive heuristics are used in practice, even in state-of-the-art warehouse management systems, however, it might well be that more attractive algorithmic alternatives could be developed. We address one such a fundamental materials handling problem: the batching of orders in a parallel-aisle warehouse so as to minimize the total traveling time needed to pick all items. Many heuristics have been proposed for this problem, however, a fundamental analysis of the problem is still lacking. In this paper, we first address the computational complexity of the problem. We prove that this problem is NP-hard in the strong sense but that it is solvable in polynomial time if no batch contains more than two orders. This result is not really surprising but it justifies the development of approximation and/or enumerative optimization algorithms for the general case. Our primary goal is to develop a branch-and-price optimization algorithm for the problem. To this end, we model the problem as a generalized set partitioning problem and present a column generation algorithm to solve its linear programming relaxation. Furthermore, we develop a new approximation algorithm for the problem. Finally, we test the performance of the branch-and-price algorithm and the approximation algorithm on a comprehensive set of instances. The computational experiments show the compelling performance of both algorithms.     

Modelling and performance evaluation of explosive storage policies in internet fulfilment warehouses

Internet Fulfilment Warehouses (IFWs) are designed to exclusively process online retail orders. An observational study reveals that IFW operating and design attributes are significantly different from traditional warehouses in their storage and fulfilment policies. Specifically, we identify six IFW differentiators: explosive storage, very large number of beehive storage locations, bins with commingled SKUs, immediate fulfilment, short picking routes with single unit picks and high transactions with total digital control. Explosive storage of incoming bulk allows for faster fulfilment of customer orders often within a few hours. A new IFW control model is developed. This describes the associated receiving and fulfilment flows. Two decision algorithms for generating (i) a stocking list and (ii) an order picking list are presented. A simulation model was built to evaluate the fulfilment performance of the explosive policy. Experimental runs on a problem with 400 SKUs, 3240 bins and 22,000 customer orders over nine days are reported. Results show that increasing levels of explosion reduce the linear fulfilment time by as much as 16%, confirming the IFW storage policy is advantageous. The results also show that fulfilment time behaviour is convex as a function of the maximum number of stops allowed by the picking algorithm parameter.     

Strategies for integrating lead time and customer-order decisions

Make-to-order manufacturers are facing unprecedented challenges to fill their customer orders quickly and to reduce their operating costs. In this paper, we first describe and discuss order taking and lead time quoting practice in a real world make-to-order manufacturing system. We then develop a model for this practical problem to study the conflicting objectives, of delivering customized orders quickly and maximizing expected profit. The primary goal of this paper is to develop a general model for studying the trade-offs and the interrelationships among the following manufacturing performance measures: manufacturing flow times, quoted lead time reliability (earliness and tardiness), throughput (or demand) rates, inventory levels, resource utilization, and expected profits. These and other related managerial issues are explored. Our structural results yield insights into basic choices between filling customer orders quickly and maximizing expected profit.     

Evaluating order picking performance trade-offs by configuring main operating strategies in a retail distributor: A Design of Experiments approach

Warehouse design has become important due to its impact on service to customers and total logistics costs. Order picking is the key activity of a warehouse and an appropriate design will directly affect its overall performance. The increasing complexity of warehouses means that the main operating strategies such as storage location assignment, batching and routing need to be considered simultaneously. A Design of Experiment approach aided by Discrete Event Simulation could help to meet these new picking design process requirements, especially when various performance measures need to be compared. Some of the trade-offs that managers must keep in mind when designing order picking systems are shown, describing a single-case study carried out at a retail distributor.     

Data mining-based algorithm for storage location assignment in a randomised warehouse

Data mining has long been applied in information extraction for a wide range of applications such as customer relationship management in marketing. In the retailing industry, this technique is used to extract the consumers buying behaviour when customers frequently purchase similar products together; in warehousing, it is also beneficial to store these correlated products nearby so as to reduce the order picking operating time and cost. In this paper, we present a data mining-based algorithm for storage location assignment of piece picking items in a randomised picker-to-parts warehouse by extracting and analysing the association relationships between different products in customer orders. The algorithm aims at minimising the total travel distances for both put-away and order picking operations. Extensive computational experiments based on synthetic data that simulates the operations of a computer and networking products spare parts warehouse in Hong Kong have been conducted to test the effectiveness and applicability of the proposed algorithm. Results show that our proposed algorithm is more efficient than the closest open location and purely dedicated storage allocation systems in minimising the total travel distances. The proposed storage allocation algorithm is further evaluated with experiments simulating larger scale warehouse operations. Similar results on the performance comparison among the three storage approaches are observed. It supports the proposed storage allocation algorithm and is applicable to improve the warehousing operation efficiency if items have strong association among each other.     

The use of bucket brigades in zone order picking systems

As the transactions through electronic commerce and TV home shopping increase, the warehouses often receive a large amount of small orders to be picked within tight time windows. One of the important warehousing activities is order picking, the process of retrieving a number of items from warehouse storage to meet a number of independent customer orders. This paper examines a new order picking method, bucket brigade order picking (BB picking). Bucket brigade is a way of coordinating workers who progressively perform a set of operations on a flow line. In the BB picking system, a worker performs operations on an order until the next worker downstream takes it over; then goes back to the previous worker upstream to take over a new order. We discuss distinct characteristics in order picking systems when bucket brigades are applied. We identify some efficiency losses under the BB picking and present a new BB picking protocol to improve the performance of order picking systems. The new BB picking is compared with the existing BB picking and zone picking through simulation experiments.     

Optimal order picker routing in a conventional warehouse with two blocks and arbitrary starting and ending points of a tour

This paper investigates manual order picking, where workers travel through the warehouse to retrieve requested items from shelves. To minimise the completion time of orders, researchers have developed various routing procedures that guide order pickers through the warehouse. The paper at hand contributes to this stream of research and proposes an optimal order picker routing policy for a conventional warehouse with two blocks and arbitrary starting and ending points of a tour. The procedure proposed in this paper extends an earlier work of Löffler et al. (2018. Picker routing in AGV-assisted order picking systems, Working Paper, DPO-01/2018, Deutsche Post Chair-Optimization of Distribution Networks, RWTH Aachen University, 2018) by applying the concepts of Ratliff and Rosenthal (1983. “Order-picking in a Rectangular Warehouse: a Solvable Case of the Traveling Salesman Problem.” Operations Research 31 (3): 507–521) and Roodbergen and de Koster (2001a. “Routing Order Pickers in a Warehouse with a Middle Aisle.” European Journal of Operational Research 133 (1): 32–43) that used graph theory and dynamic programming for finding an optimal picker route. We also propose a routing heuristic, denoted S*-shape, for conventional two-block warehouses with arbitrary starting and ending points of a tour. In computational experiments, we compare the average order picking tour length in a conventional warehouse with a single block to the case of a conventional warehouse with two blocks to assess the impact of the middle cross aisle on the performance of the warehouse. Furthermore, we evaluate the performance of the S*-shape heuristic by comparing it to the exact algorithm proposed in this study.     

Storage assignment and order batching problem in Kiva mobile fulfilment system

This article studies the storage assignment and order batching problem in the Kiva mobile fulfilment system. The storage assignment model aims to decide which product to put in which pod to maximize the product similarity and the order batching model aims to minimize the number of visits of pods. To solve the order batching problem, a heuristic is proposed, where a batch schedule is initialized with the objective of maximizing the order association or minimizing order alienation and improved by variable neighbourhood search. Computational experiments are conducted to verify the performance of the proposed model and algorithm.