Using dynamic demand information and zoning for the storage of non-uniform density stock keeping units

The warehouse order-picking operation is one of the most labour-intense activities that has an important impact on responsiveness and efficiency of the supply chain. An understanding of the impact of the simultaneous effects of customer demand patterns and order clustering, considering physical restrictions in product storage, is critical for improving operational performance. Storage restrictions may include storing non-uniform density stock keeping units (SKUs) whose dimensions and weight constrain the order-picking operation given that a priority must be followed. In this paper, a heuristic optimisation based on a quadratic integer programming is employed to generate a layout solution that considers customer demand patterns and order clustering. A simulation model is used to investigate the effects of creating and implementing these layout solutions in conjunction with density zones to account for restrictions in non-uniform density SKUs. Results from combining layout optimisation heuristics and density zoning indicate statistical significant differences between assignments that ignore the aforementioned factors and those that recognise it.